Investors punish Gallagher as quarterly profit dives
Shares in Arthur J Gallagher & Co have edged lower in New York after plunging 22% last Wednesday on news that the world’s fourth-largest broker’s Q4 profit dropped 80%.
Quarterly net earnings were $US4.7 million ($7.2 million), down from $US23.4 million ($35.9 million) in the corresponding period in 2007.
CEO J Patrick Gallagher Jr says the company did not escape the negative impact of a rapidly deteriorating economy.
“Fewer new business sales, reduced renewal exposure units, less investment income, declines in claim frequency and a strengthening US dollar all combined to challenge growth and profitability in both our brokerage and risk management segments,” he said.
Quarterly net earnings were $US4.7 million ($7.2 million), down from $US23.4 million ($35.9 million) in the corresponding period in 2007.
CEO J Patrick Gallagher Jr says the company did not escape the negative impact of a rapidly deteriorating economy.
“Fewer new business sales, reduced renewal exposure units, less investment income, declines in claim frequency and a strengthening US dollar all combined to challenge growth and profitability in both our brokerage and risk management segments,” he said.