Arthur J Gallagher Reports Profit in Q4 Driven by Booming Insurance Activity
Insurance brokerage Arthur J Gallagher announced a fourth-quarter profit, reversing a loss from the same period last year. Increased insurance activity fueled higher fees and commissions for the company's brokerage services.
Insurance brokerages act as intermediaries, connecting clients with insurers and aiding them in selecting policies that align with their needs. Unlike insurers, these brokerages do not sell policies directly.
With confidence in a stable economic outlook, businesses have increased their insurance spending. This has benefited brokerages like Arthur J Gallagher, leading to higher fees.
For the quarter ended December 31, the company reported a profit of $258.2 million or $1.12 per share. In comparison, it had faced a loss of $39.6 million or 15 cents per share during the same period a year ago.
Total revenue for the quarter reached $2.72 billion, marking a nearly 12% increase. A 13% surge in commissions contributed significantly to this growth.