July 25 (Reuters) - Arthur J Gallagher's ( AJG )

second-quarter profit rose by 21%, driven by strong insurance

demand that increased commissions from its brokerage operations,

the company said on Thursday.

A resilient economy and growing optimism about a soft

landing have led businesses to invest more on insurance

policies, resulting in higher fees for brokerages like Arthur J

Gallagher ( AJG ).

Insurance brokerages act as intermediaries between customers

and insurers. They help customers in finding the best policy for

their needs, rather than selling insurance themselves.

Total revenue at Arthur J Gallagher ( AJG ) rose 14% to $2.78

billion for the three months ended June 30. Net earnings were

$285.4 million or $1.27 per share compared with $235.8 million

or $1.07 per share last year.

Shares of the Rolling Meadows, Illinois-based company have

gained 22% so far this year as of Thursday's close,

underperforming peer Brown & Brown's ( BRO ) 37% jump.