Arthur J. Gallagher & Co. (AJG) has reported a 7.88 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $122.80 million, or $0.69 a share in the quarter, compared with $133.30 million, or $0.75 a share for the same period last year. On an adjusted basis, profit per share for the quarter was stable at $0.77, when compared with the last year period.
Revenue during the quarter went up marginally by 1.89 percent to $1,482.30 million from $1,454.80 million in the previous year period.
Total expenses move up marginally
Operating income for the quarter was $94.90 million, compared with $105.70 million in the previous year period. Net investment income was at $14.70 million for the quarter, down 6.37 percent or $1 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 4.06 percent or $40.60 million to $1,039.60 million.
"My recent meetings with dozens of insurance carriers, and our own internal data suggests the domestic insurance market remains stable," said J. Patrick Gallagher, Jr., chairman, president and chief executive officer. "This is a market where expertise and value added service should drive growth. Around the world, we are successfully executing our strategies ��" we are growing organically, expanding through M&A, making strides in productivity and quality and our culture is thriving. We are well positioned for a strong finish to 2016 and for another excellent year in 2017."
Liabilities outpace assets growth
Total assets increased 6.56 percent or $689.90 million to $11,200.30 million on Sep. 30, 2016. On the other hand, total liabilities were at $7,459.10 million as on Sep. 30, 2016, up 9.65 percent or $656.60 million from year-ago. Return on assets stood at 1.42 percent in the quarter, down 0.17 from 1.58 percent in the last year period. At the same time, return on equity was at 3.28 percent in the quarter, down 0.31 from 3.60 percent in the last year period.
Net premiums and other receivables increased 5.18 percent or $82.90 million over the year to $1,683.70 million on Sep. 30, 2016.
Total debt was at $2,785.70 million as on Sep. 30, 2016, up 16.43 percent or $393.10 million from year-ago. Shareholders equity stood at $3,741.20 million as on Sep. 30, 2016, up 0.90 percent or $33.30 million from year-ago. As a result, debt to equity ratio went up 10 basis points to 0.74 percent in the quarter from 0.65 percent in the last year period.
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