Gallagher says its business is in “great shape” after a rise in second-quarter earnings.

Adjusted company net income in the three months to June grew to $US506.6 million ($771 million) from $US413.8 million ($630 million) a year earlier.

Brokerage net income, on an adjusted basis, rose to $US550.4 million ($838 million) from $US459.2 million ($699 million), and adjusted risk management net income increased to $US49.1 million ($74 million) from $US38.4 million ($58 million).

“We had an excellent second quarter,” chairman and CEO J. Patrick Gallagher Jr said. “The business is in great shape and we are in an enviable position.”

He says Gallagher’s insurance and reinsurance carrier partners continue to behave “rationally”, pushing for rate increases where needed by line of business, industry and geography. 

“Within our client base, second-quarter global insurance renewal premiums were up 5%, unchanged from a month ago,” Mr Gallagher said. “Property renewal premium increases are moderating and casualty increases are showing signs of advancing.

“Reinsurance carriers maintained underwriting standards and were disciplined on pricing, all while meeting increased client demand with ample capacity.”

Within the brokerage business, Gallagher achieved a 7% rise in organic growth in its UK, Australia and New Zealand property and casualty retail segment, Mr Gallagher told an earnings call.