Gallagher attributes the dip to a $22.3 million loss on discontinued operations during the first quarter compared with the $1.5 million loss the broker reported on discontinued operations a year ago (including reinsurance brokerage business it sold last year), along with a substantial decline in investment income.
Investment income and other gains dropped 95.5% to $1.6 million from $35.4 million a year ago, a decline that kept Gallagher’s total revenue of $375.8 million during the first quarter nearly even with last year’s total of $375 million.
On a positive note, brokerage and risk management revenue climbed nearly 10.2% to $374.2 million during the quarter.