May 1 (Reuters) - Arthur J. Gallagher ( AJG ) reported a rise in first-quarter profit on

Thursday, as the insurance brokerage firm benefited from higher fees and commissions owing to

clients' strong insurance spending.

Insurance brokerages act as intermediaries for customers and insurers, guiding the latter to

choose the best plans for their requirements. Unlike insurers, they do not directly sell

policies.

Spending on insurance policies remained robust in the quarter, helping insurance firms rake

in profits. That translated to higher fees and commissions for brokerages such as Arthur J.

Gallagher ( AJG ).

"Our core brokerage and risk management segments combined to deliver 14% revenue growth,

including organic revenue growth of 9%," CEO J. Patrick Gallagher Jr. said in a statement.

The company reported a net profit of $816.1 million, or $3.13 per share, in the three months

ended March 31. That compares with a profit of $652.6 million, or $2.92 per share, in the

year-ago period.

On a reported basis, the company posted commissions and fees of $2.87 billion, up from $2.60

billion last year.

Shares of the company, which have gained nearly 12% in 2025, rose marginally in trading

after the bell.

Brown & Brown ( BRO ), another insurance brokerage firm, also reported a rise in quarterly

profit earlier in the week due to a rise in commissions and fees.

Arthur J. Gallagher ( AJG ), which is known for tuck-in acquisitions, in March struck a $1.2 billion

deal to acquire rival Woodruff Sawyer, its latest move to expand its business.