Arthur J. Gallagher & Co. Annual Report, Year Ended Dec 31, 2011

Arthur J. Gallagher & Co. (AJG) reported strong growth in its 2011 annual report, driven by a significant increase in both brokerage and risk management segments. Total revenues reached $2.13 billion, up from $1.86 billion in 2010, with the brokerage segment accounting for 73% and the risk management segment for 26% of revenues. The company successfully integrated numerous acquisitions, notably the acquisition of Heath Lambert, which contributed significantly to the international revenue growth, with international operations comprising 19% of total revenues by year-end 2011. AJG demonstrated expense discipline and generated positive organic growth across its core businesses. The company's financial performance was bolstered by a recovery in commercial property/casualty rates, which showed upward trends in the latter half of the year, coupled with a robust acquisition strategy that expanded its global footprint and service capabilities. While facing headwinds from the uncertain economic environment, AJG's management highlighted improved operating results and a continued focus on expanding international operations. The company also noted potential benefits from the 2010 Health Care Reform Legislation, which could create opportunities in its employee benefits consulting business. Investments in clean energy, specifically IRC Section 45 clean coal production plants, are expected to provide future tax credits and earnings, although subject to inherent risks and uncertainties. AJG maintained a strong balance sheet with significant cash reserves and managed its debt effectively, demonstrating a commitment to financial stability and shareholder returns.