Article ID: 08ed053c0f84ef0cf795ca6f43cc27389498ccf16ad8f75fcd3c60592bbcc234
Source ID: secondary:businessinsurance.com
Published At: -
Extraction Method: trafilatura
URL: https://www.businessinsurance.com/gallagher-sees-prices-still-rising-reports-20-growth/
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Commercial insurance rate increases continue to outweigh decreases, despite falls in property insurance pricing, Arthur J. Gallagher & Co.’s top executive said Thursday. The brokerage continues to see mid-to-high single-digit increases in premiums across several casualty lines, said J. Patrick Gallagher Jr., chairman and CEO, on a call with analysts discussing Gallagher’s third-quarter results. Gallagher reported more than 20% revenue growth for the period, in which it closed its largest-ever acquisition. Global property insurance renewal premiums fell 5% in the quarter, Mr. Gallagher said. “I think the property market is going in a direction that makes some sense, given the fact that they’ve got good results,” he said. Casualty rates were up 6% overall, with workers compensation up 1%, general liability 4%, commercial auto 5% and umbrella liability increased 8%, Mr. Gallagher said. U.S casualty lines are up 8%, he said. Directors and officers liability rates were down 2%. Gallagher reported $3.33 billion in revenue for the third quarter, a 20.2% increase over the same period last year. On an organic basis, which excludes the effects of acquisitions and foreign currency fluctuations, revenue rose 4.8%. Gallagher closed six acquisitions in the third quarter, including the $13.8 billion acquisition of AssuredPartners, which closed in August. In its core brokerage business, it reported $2.92 billion in revenue, a 22% increase. Risk management revenue, which includes its third-party administrator Gallagher Bassett, rose 8.8% to $402.1 million. Net earnings fell 12.9% to $273.6 million for the quarter. Earnings before interest, taxes, depreciation, amortization and coronavirus rose 17.7% to $812.9 million.
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