Three of the world’s largest insurance brokers have reported organic growth in their third-quarter results, an indicator that market conditions are beginning to improve.

Aon reported 3% growth in broking revenues for the three months to September 30, compared with the third quarter of 2010; Willis reported 2% growth in commissions and fees in the same period; and Arthur J Gallagher reported 5.2% growth in commission, fee and supplemental commission revenues from its brokerage and risk management operations for the quarter.

Aon reported net income for the third quarter of $US198 million ($185 million) up from $US144 million ($134.5 million) for the corresponding period last year.  

Strong organic revenue growth from its retail broking operations offset a small decline in revenues from its reinsurance broking business, while overall, total revenue from broking increased 9% for the quarter.

“While macro-economic conditions remain challenging globally, we are firmly on track to deliver growth in 2011,” Aon President and CEO Greg Case said.

Aon reported “solid” growth in the Americas, with “strong” growth noted across Asia and New Zealand and “modest” growth in Australia and Africa.

Willis reported net income for the third quarter of $US60 million ($56.6 million), down slightly from $US64 million ($60.4 million) in the third quarter of 2010, on total revenue of $US762 million ($719.3 million).

“Organic growth within the global and international segments came in strong – especially in light of the difficult markets,” Willis Group Chairman and CEO Joe Plumeri said.

In a presentation to analysts, Mr Plumeri signalled the broker is back in the market for acquisitions around the world after a three-year break.

“I think you should expect us to be more proactive in that area as a way to supplement our organic growth and allow us to grow our revenue and our geographic footprint even faster,” Mr Plumeri said.

“Make no mistake, Willis is making significant progress towards the goals that we had set out earlier this year. We are achieving expense savings from our operational review and gaining traction in many of our revenue initiatives.”

In recent weeks, two senior executives – UK CEO Brendan McManus and Willis International CEO David Margrett – have left the business.

The departures closely follow a £6.9 million ($10.4 million) fine imposed on Willis by the UK’s Financial Services Authority for failings in its anti-bribery systems and controls between January 2005 and December 2009. But Mr Plumeri denied the two are linked.

“It was simply a couple of people who left the company and we go forward from there. It wasn’t related to anything you are going to read about,” he says.

Meanwhile, Arthur J Gallagher reported growth of 22% for its brokerage and risk management operations to $US560.1 million ($534.4 million) for the third quarter, and flagged a hardening in rates.

Chairman, President and CEO Patrick Gallagher Jr says the company continues to see some indications of market firming, “and so far our customers’ businesses seem to be weathering the recent economic uncertainty”. 

“Looking forward, our global team is pushing hard to deliver continued solid results for 2011, which should give us strong momentum going into 2012.”

Despite completing eight acquisitions in the quarter, which included UK broker Heath Lambert, Mr Gallagher says all business units are also experiencing organic growth.