Arthur J. Gallagher & Co has announced “record profits” of £112.6m in its Q4 2020 financials, up from £77.7m in 2019.
However, a sharp fall in corporate earnings has led to an overall year-on-year decline in the group’s revenue, from £1.24bn to £1.2bn.
While the firm also posted a strong performance in its brokerage arm for the entire financial year, as net earnings soared to £637m, its risk management branch saw revenue fall from £616.8m to £604.4m.
He added: “Despite the pandemic and the resulting economic fall out, we executed on our long-term operating priorities: growing both organically and through acquisitions, improving both our productivity and quality, and still investing in our bedrock culture.
“An environment of rising rates and growing exposure units provides a near-perfect opportunity for us to demonstrate that we provide the very best insurance, consulting and risk management advice for our clients.”
By facilitating cuts in means such as reducing travel, advertising expenditures, and reorganising the group’s real estate portfolio, the firm has reportedly cut quarterly expenses by £47.6m to £51.3m.