AJ GALLAGHER IMPROVES PROFITS IN FIRST QUARTER

US-based broking group Arthur J Gallagher & Co (AJG) reported organic growth and improved profit margin in the first quarter of the year, beating analysts' forecasts. The acquisitive global broker reported 11% revenue growth in its brokerage and risk management segments to $1bn, of which 4.8% was organic growth. The group's adjusted Ebitdac for brokerage and risk management was up 15% to $222.7m for the quarter and the adjusted Ebitdac margin improved 91 basis points. Earnings per share were 34¢, which was 26% higher than for the same period last year and ahead of Wall Street analysts' forecasts of 30¢ a share. The brokerage segment achieved 4.8% organic growth with revenue rising to $823m, with Ebitdac rising 16% to $191.2m. Organic growth included an uplift of 3.5% to $662.8m on base commissions and fees, a 21.8% increase in supplemental commissions to $31.9m and a 14.7% rise in contingent commissions to $50.7m.