Arthur J. Gallagher & Co.'s (AJG) second-quarter earnings rose 72% as the insurance broker and consulting firm continued to report growth at its brokerage and risk-management segments.
The company continued its acquisition streak during the quarter, completing 15 deals in the latest period, compared with nine a year earlier.
Arthur J. Gallagher is among companies that have been expected to benefit from rate increases, though its international presence may expose it to negative foreign-exchange impacts.
Arthur J. Gallagher reported a profit of $71.7 million, or 59 cents a share, up from $41.7 million, or 37 cents a share, a year earlier. Excluding acquisition-related costs and other items, earnings were up at 55 cents from 50 cents a share.
Revenue increased 19% to $649.9 million. Commission revenue rose 16% and fee revenue was up 13%.
Analysts polled by Thomson Reuters most recently projected earnings of 56 cents a share on revenue of $604 million.
At the brokerage segment, revenue rose 17% and earnings improved 29%, while risk-management revenue increased 7.4%, and income surged 83%.
Shares were flat at $35.48 in light after-hours trading. Through Tuesday's close, the stock is up roughly 26% in the past year.