(Reuters) -Arthur J. Gallagher reported a rise in second-quarter profit on Thursday, supported by strong insurance spending that led to higher commissions and fees for the company.
Insurance brokerages, which act as intermediaries by assisting customers in selecting suitable plans for their needs, do not directly sell policies.
Insurance spending stayed strong in the quarter as individuals and businesses sought protection against economic uncertainty and natural disasters, boosting fees and commissions for brokerages such as Arthur J. Gallagher.
“We are making excellent progress on the pending AssuredPartners acquisition and believe we are on track to close here in the third quarter of 2025,” CEO J. Patrick Gallagher Jr. said in a statement.
Arthur J. Gallagher’s commissions rose to $1.81 billion, up from $1.66 billion in the prior year. Total fees rose over 16% to $962.4 million in the quarter.
The company reported a net profit of $366.2 million, or $1.40 per share, for the three months ended June 30, compared with $285.4 million, or $1.27 per share, in the same period a year earlier.
Peer Aon earlier this week also reported higher quarterly profit, due to a rise in commissions and fees.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Mohammed Safi Shamsi)
Comments