2 Min Read
* Q2 EPS from cont ops $0.40 vs est $0.46
* Q2 rev up 1 pct to $459.5 mln
* Brokerage segment pulls down Q2 profit
July 27 (Reuters) - U.S. insurance broker Arthur J. Gallagher & Co (AJG.N) reported a quarterly profit below analysts' expectations, hurt by greater expenses and lower fee income at its brokerage segment.
For the second quarter, the company's net income was $44 million, or 42 cents a share, compared with $43.8 million, or 44 cents a share a year ago.
The company earned 40 cents a share from continuing operations.
Total revenue for the quarter rose 1 percent to $459.5 million.
Analysts on average had expected the company to earn 46 cents a share, on revenue of $464 million, according to Thomson Reuters I/B/E/S.
"Client exposures are declining in this economy and the insurance marketplace softened even further in the quarter," Chief Executive Patrick Gallagher said.
Expenses in the brokerage segment rose 5 percent to $284.2 million. Fee income fell to $68.5 million from $73.9 million.
The insurance brokerage industry helps commercial clients find insurance coverage for a wide range of risks.
Shares of the Itasca, Illinois-based company closed at $25.99 Tuesday on the New York Stock Exchange. (Reporting by Shravya Jain in Bangalore; Editing by Unnikrishnan Nair)