Arthur J. Gallagher & Co. reported its financial results for the quarter and nine-month period ended September 30, 2012.
"Our third quarter was another strong quarter," said J. Patrick Gallagher, Jr., Chairman, President and CEO. "Our combined Brokerage and Risk Management segments posted 12% growth in adjusted total revenues, 4.2% organic growth in base commission and fee revenues and 18% growth in adjusted EBITDAC and we improved adjusted EBITDAC margins by 121 basis points."
Gallagher's brokerage segment had another excellent quarter. Adjusted total revenues were up 14%, base organic commission and fee revenues grew 4.0%, adjusted EBITDAC was up 20%, adjusted EBITDAC margins were up 141 basis points and adjusted diluted net earnings per share increased 8%. They also completed another 11 acquisitions with annualized revenues of $56.6 million and our pipeline remains strong.
Their Risk Management segment also had a solid quarter. Excluding the New Zealand earthquake claim-settling unit which has nearly wrapped up operations, adjusted total revenues were up 5%, base organic fees were up 5.0%, adjusted EBITDAC was up 6% and they hit their targeted adjusted EBITDAC margin of 16% while making their planned client-centric investments.
"The rate environment continues to improve and portions of the economy continue to show improvement. More than ever,our clients rely on us to navigate through the changing and more complex risk environment, and our client-focused professionals are delivering every day," said Mr. Gallagher.