Arthur J. Gallagher & Co.'s first-quarter profit plunged 48% from a year-earlier period boosted by gains as revenue declined.
The insurance broker and risk-management firm had seen core earnings climb more than analysts' expected in recent quarters as commissions have risen. It is coming off a period of stagnant results in a soft insurance market.
Arthur J. Gallagher posted a profit of $15.2 million, or 14 cents a share, down from $29.2 million, or 28 cents a share, a year earlier. Excluding items, earnings fell to 16 cents from 19 cents. Revenue slid 7.3% to $447.4 million.
Analysts polled by Thomson Reuters most recently forecast earnings of 23 cents on $438 million in revenue.
At the brokerage segment, revenue rose 4.3% but earnings declined amid fewer gains than a year earlier. Risk management earnings fell 25% amid charges as revenue increased 18%.