Insurance broker Arthur J. Gallagher & Co. reported on Tuesday that its fourth quarter profit rose from last year, helped by higher revenue from its brokerage segment.
The Itasca, Illinois-based company reported net income of $16.8 million or $0.16 per share, compared to $4.7 million or $0.05 per share for the year-ago quarter.
Income from continuing operations for the fourth quarter was $19.4 million or $0.19 per share, compared to $11.7 million or $0.12 per share in the prior year quarter.
On average, 12 analyst polled by Thomson Reuters expected the company to earn $0.23 per share for the fourth quarter. Analysts' estimates typically exclude special items.
During fourth quarter, Gallagher recorded pretax charges of $11.8 million as a result of the completion of a previously announced plan to reduce, and the reorganization of, its middle and back office workforce by about 400 positions and from the termination of certain office leases.
Total revenue for the fourth quarter rose 5.6% to $435.1 million from $412.1 million in the same quarter last year. Twelve analysts had a consensus revenue estimate of $420.31 million for the fourth quarter.
The company's brokerage segment revenue increased 5.8% to $320.8 million in the fourth quarter, while its risk management segment revenue declined 0.6% to $114.2 million.
For the full year 2009, the company reported net income of $128.6 million or $1.28 per share, compared to $77.3 million or $0.82 per share for the full year 2008.