Gallagher expects to maintain its revenue momentum for the rest of the year after second-quarter earnings increased, lifted by hardening rates. 

Overall company net earnings, as adjusted, grew to $US417 million ($633 million) in the June quarter from $US349.7 million ($531 million) a year earlier and adjusted revenues before reimbursements went up to $US2.4 billion ($3.6 billion) from $US1.98 billion ($3 billion). 

The core brokerage arm booked adjusted net earnings of $US462.3 million ($702 million), up from $US377.6 million ($573 million) and adjusted revenues before reimbursements also improved, to $US2.08 billion ($3.16 billion) from $US1.72 billion ($2.6 billion). 

President and CEO J Patrick Gallagher says global insurance renewal premiums were up 12% in the June quarter, ahead of the 8-10% increase seen last year and the first quarter of this year. 

“Mid-year reinsurance renewals showed hard market conditions similar to what we saw in January 2023 renewals,” Mr Gallagher, who is also Chairman, said. 

“And, during the second quarter and thus far in July, our data is not showing a slow-down in our customers’ business activity. We are seeing higher exposure units, payrolls and employee counts. 

“Looking ahead, we expect insurance and reinsurance pricing increases to continue in 2023 and perhaps throughout 2024. 

“Continued pricing increases, combined with global exposure growth, provide a favourable backdrop for our talented production team to outperform.” 

Gallagher results also improved in the first half. Adjusted company net earnings increased to $US1.07 billion ($1.62 billion) from $US936.5 million ($1.42 billion) a year earlier. 

The brokerage arm achieved adjusted net earnings of $US1.14 billion ($1.73 billion) and revenues before reimbursements of $US4.45 billion ($6.76 billion), up from $US978.4 million ($1.49 billion) and $US3.8 billion ($5.77 billion).