Broker Arthur J. Gallagher has reported net income of $US201.8 million ($274.8 million) for the second quarter to June, up from $US161.8 million ($220.4 million) in the corresponding period of last year.

When measured on an adjusted basis, net income improved to $US253.2 million ($344.8 million) from $199.7 million ($271 million).

Brokerage net earnings on an adjusted basis increased to $US250.3 million ($340.9 million) from $US223.2 million ($303 million) while the risk management arm grew its adjusted net earnings to $US25.6 million ($34.9 million) from $US14.8 million ($20.2 million).

“We delivered another outstanding quarter of operating performance,” Chairman, President and CEO Patrick Gallagher said.

He says the core brokerage and risk management arms combined recorded a 17% rise in revenue, including 8.6% that was organically driven.

The business also completed eight new “tuck-in mergers” with about $US70 million ($95 million) in annualised revenues, Mr Gallagher said.

“Global [property and casualty] rates remain firm overall, and the increases we saw during the second quarter of 2021 were similar to the first quarter,” he said. “At the same time, we are seeing increased economic activity across our client base.

“Customers are adding coverages and exposures to their existing policies, which is an encouraging sign for the underlying financial health of our clients.

“2021 is shaping up to be a fantastic year.”

In a separate statement, Gallagher says it has terminated an agreement to acquire certain Willis Towers Watson brokerage assets. The termination follows the decision by Aon to call off its merger with Willis Towers Watson.