Arthur J. Gallagher & Co. (AJG) has reported a 19.78 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $55.70 million, or $0.31 a share in the quarter, compared with $46.50 million, or $0.26 a share for the same period last year. On an adjusted basis, earnings per share were at $0.40 for the quarter compared with $0.34 in the same period last year. Revenue during the quarter grew 8.64 percent to $1,412.70 million from $1,300.40 million in the previous year period.
Total expenses move up
Operating income for the quarter was $52.30 million, compared with $55.70 million in the previous year period. Net investment income was at $12.20 million for the quarter, down 2.40 percent or $0.30 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 5.70 percent or $56.60 million to $1,048.90 million.
We had an excellent start to 2017. Coming off a terrific 2016, we delivered solid organic growth, outstanding revenue growth from our tuck-in M&A strategy and strong margin expansion in the first quarter," said J. Patrick Gallagher, Jr., Chairman, President and CEO. "Our unique culture is thriving around the world, demonstrated by being selected as a World’s Most Ethical Company for the sixth year in a row by the Ethisphere Institute. Our global businesses are working well together, the team is energized and we are successfully executing our strategies. We are well positioned for the remainder of 2017."
Liabilities outpace assets growth
Total assets increased 9.97 percent or $1,068 million to $11,780.60 million on Mar. 31, 2017. On the other hand, total liabilities were at $8,053.30 million as on Mar. 31, 2017, up 14.06 percent or $993 million from year-ago. Return on assets stood at 0.83 percent in the quarter, up 0.05 from 0.78 percent in the last year period. At the same time, return on equity was at 1.49 percent in the quarter, up 0.22 from 1.27 percent in the last year period.
Net premiums and other receivables increased 21.09 percent or $360 million over the year to $2,066.80 million on Mar. 31, 2017.
Total debt was at $2,944.10 million as on Mar. 31, 2017, up 16.69 percent or $421.10 million from year-ago. Shareholders equity stood at $3,727.30 million as on Mar. 31, 2017, up 2.05 percent or $75 million from year-ago. As a result, debt to equity ratio went up 10 basis points to 0.79 percent in the quarter from 0.69 percent in the last year period.
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