Gallagher Reports First-Quarter Loss

The world’s fourth-largest broker, Arthur J. Gallagher & Co., posted a first-quarter loss of $6 million despite a more than 10% increase in revenue from its brokerage and risk management operations compared to the same period last year. In contrast, Gallagher reported profits of $19.8 million for the first quarter last year.

Published on April 25, 2008

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.