Arthur J. Gallagher's Q3 profit rises on brokerage, risk management units growth
Oct 26 (Reuters) - Arthur J. Gallagher posted a rise in third-quarter profit on Thursday, helped by growth in its insurance brokerage and risk management units.
Insurance brokerages serve as a bridge between an insurer and its customers, helping clients find a policy which best suits their needs.
Demand for insurance products has remained resilient against an uncertain economy and the sector is typically considered recession-proof as many policies are often guaranteed by employers, while some are mandated by government.
Earlier this week, peer Brown & Brown also reported a higher third-quarter profit as it earned more commissions and fees.
Arthur J. Gallagher's total revenue before reimbursements for brokerage and risk management, as adjusted, rose nearly 21% from a year earlier to $2.45 billion in the third quarter.
Net earnings of the total company on an adjusted basis were $2 per diluted share in the three months ended Sept. 30, compared with $1.68 a year earlier. (Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
