Revenue increases and cost cutting boosts result
Broking group Arthur J Gallagher’s UK division made a pre-tax profit of £8.4m in 2009, a 90% increase over the £4.4m profit it made in 2008.
The broker’s latest company accounts, seen by Insurance Times, show a turnaround in operating profit of an £8.3m profit in 2009 from a £6.6m loss in 2008.
The broker’s turnover for continuing operations climbed from £48.8 to £53.6m, helped by a strong performance in its North American and global operations, while revenues from the UK business broadly remained flat. Net assets increased to £29m from £22.7m.
Employees reduced from 364 to 320, trimming staff costs from £40.8m to £35.4m. Operating charges fell to £47m from £60.7m.
The improvement in the 2009 result came despite a £10.9m exceptional gain in 2008 resulting from the disposal of books of business. The corresponding gain in 2009 was £111,000.
Chief executive David Ross said: "These satisfactory results are a credit to the Gallagher team, validating our strategy and providing us with a robust platform for growth. Recent acquisitions are performing well, as we increase our presence in natural resources, large corporate, international mainstream middle-market and MGA-related business in UK and Europe."
Arthur J Gallagher (UK) bought Lloyd's broker FirstCity in March this year, and its US parent announced the purchase of another Lloyd's broker, Risk & Reward Group, in June.
In 2010, Arthur J Gallagher (UK)’s directors expect the company to benefit from expansion and improved efficiencies in addition to further revenue growth from continuing operations.
No comments yet