Arthur J Gallagher posts profit in Q4 on boost from commissions
30/01/2025 21:46
Jan 30 (Reuters) - Arthur J Gallagher AJG.N on
Thursday posted a profit for the fourth quarter, compared with a
loss a year earlier, as heightened insurance activity boosted
fees and commissions from its brokerage services.
Insurance brokerages act as intermediaries between clients
and insurers, guiding customers in selecting policies that best
match their needs. Unlike insurers, they do not directly sell
policies.
Confidence in a soft-landing and economic resilience has
spurred businesses to spend more on insurance, benefiting
brokerages such as Arthur J Gallagher through higher fees.
The company's profit was $258.2 million, or $1.12 per share,
for the three months ended Dec. 31, compared with a loss of
$39.6 million, or 15 cents per share, a year earlier.
Its total revenue rose nearly 12% to $2.72 billion, helped
by a 13% jump in commissions.
(Reporting by Niket Nishant in Bengaluru; Editing by Shilpi
Majumdar)
((Niket.Nishant@thomsonreuters.com))