Arthur J. Gallagher Blames Softening Rates, Spitzer for Q4 Profit Decline

January 25, 2005

Itasca, Ill.-based brokerage Arthur J. Gallagher & Co. reported fourth-quarter net income of $49.1 million, down from $49.2 million a year ago, though revenue was up 6 percent to $386.9 million.

The results fell short of analysts' estimates of 56 cents a share in profit. Gallagher CEO J. Patrick Gallagher blamed the results on softening rates and "disruptions" caused by investigations stemming from New York Attorney General Eliot Spitzer's suit against Marsh & McLennan Cos. for bid-rigging.

The company, fourth-largest broker in the United States, said its internal review discovered no evidence of bid-rigging or improper tying.