(Reuters) – Arthur J Gallagher 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)
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