Gallagher's profit jumps on AssuredPartners buy, commissions and fees growth

April 30 (Reuters) - Arthur J. Gallagher AJG.N reported a jump in first-quarter profit on Thursday, as the insurance broker benefited from the acquisition of rival AssuredPartners and growth in commissions and fees.

Commissions surged 38.9% to $3.12 billion in the quarter from a year earlier, while fees jumped 27.7%. Organic revenue growth - a closely watched metric by analysts - was 5% in the quarter.

Insurance spending has remained resilient as businesses and individuals prioritize risk management, but slowing organic growth at brokers due to a soft property and casualty pricing environment has been a cause for investor worry.

"Our results reflect the strength and consistency of our business model across the dynamic insurance and economic environment," CEO J. Patrick Gallagher, Jr. said in a statement.

"We are also seeing the benefit of deeper collaboration across our P&C brokerage, benefits, and claims teams, supported by practical applications of AI, automation, and digitization that enhance how we serve and advocate for our clients."

Brokers serve as a bridge between customers and insurers and generally pocket a percentage of the premiums as commission.

Net earnings attributable to controlling interests were $912 million in the three months ended March 31, compared with $811 million a year earlier.

Gallagher completed the acquisition of AssuredPartners in August 2025, bolstering its middle-market presence.

Shares of the Rolling Meadows, Illinois-based company rose 1.9% in extended trading. The stock has declined about 20% this year as of the last close.