Arthur J Gallagher & Co, the world's fourth largest broker...
Arthur J. Gallagher & Co, the world's fourth largest broker, has announced it will no longer participate in volume or profit-based contingent commission agreements, effective from 1 January 2005.
Contingent commissions accounted for $31.7m of Gallagher's $1.09bn in total revenues for the nine months ending 30 September 2004, the broker said.
Gallagher also said it had received a subpoena from the Connecticut attorney general requesting information concerning possible antitrust violations by the brokerage in connection with the solicitation of bids for insurance.
The brokerage also noted that, following New York attorney general Eliot Spitzer's allegations of bid-rigging at Marsh & McLennan, Gallagher had retained independent counsel to perform an internal review.
