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.”
As a result of the Covid-19 pandemic Gallagher has been pressed into introducing company-wide saving measures.
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.