Gallagher reports slide in first half
US broker Arthur J Gallagher has recorded a 46% decline in first-half net income to $US34.8 million ($36.86 million) against the comparable period last year.
The result follows a $US6 million ($6.35 million) loss in the first quarter of the year.
Revenues for the first six months were $US804.7 million ($852 million), about 1% ahead of last year.
Chairman and CEO Pat Gallagher says the broker segment posted respectable second-quarter results given the current soft conditions in the US market. “Any margin improvement in this marketplace is outstanding,” he said.
Mr Gallagher says the company’s risk management business is also experiencing the negative effects of a soft market and slowing economy.
“We are seeing fewer customers entering the alternative market and existing customer claims frequency was lower than planned. As a result, organic growth of 7% was below our expectations,” he added.
The result follows a $US6 million ($6.35 million) loss in the first quarter of the year.
Revenues for the first six months were $US804.7 million ($852 million), about 1% ahead of last year.
Chairman and CEO Pat Gallagher says the broker segment posted respectable second-quarter results given the current soft conditions in the US market. “Any margin improvement in this marketplace is outstanding,” he said.
Mr Gallagher says the company’s risk management business is also experiencing the negative effects of a soft market and slowing economy.
“We are seeing fewer customers entering the alternative market and existing customer claims frequency was lower than planned. As a result, organic growth of 7% was below our expectations,” he added.