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ARTHUR J. GALLAGHER & CO. ANNOUNCES SECOND QUARTER RESULTS

 ITASCA, Ill., July 20 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced its financial results for the second quarter and six months ended June 30, 1993.
 For the second quarter of 1993, total revenues increased 8 percent from $67,975,000 to $73,639,000. Net income was $7,194,000, an increase of 126 percent from net income of $3,178,000 reported for the second quarter of 1992. Quarterly earnings per share were $.45 for 1993 compared to $.21 for 1992, a 114 percent increase.
 For the six months ended June 30, 1993, revenues were $145,075,000, compared to $134,119,000 last year, an increase of 8 percent. Net income was $11,389,000, up $4,415,000, or 63 percent, for the first six months from $6,974,000 last year. Earnings per share for the six months were $.72, up 60 percent from $.45 in 1992.
 Robert E. Gallagher, chairman and chief executive officer, stated that the company's avowed 1993 corporate goals of strong new sales, improved account retention and tight expense controls combined with the company's recent announcement on the settlement of its U.K. Benefit Plan restructure contributed to the outstanding results for the quarter. He noted that overall market conditions continue to remain soft despite the enormous cost of recent storm and flooding disasters.
 Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca and has 134 offices in three countries. Gallagher is traded on the New York Stock Exchange under the symbol AJG.
 ARTHUR J. GALLAGHER & CO.
 COMPARATIVE FINANCIAL ANALYSIS
 (In Thousands, Except Per Share Data)
 Six Months Ended June 30
 1993 1992(a)
 Revenues:
 Commissions $ 78,437 $ 76,023
 Fees 58,866 50,937
 Investment income and other 7,772 7,159
 Total revenues 145,075 134,119
 Expenses:
 Salaries and employee benefits 76,460 74,628
 Other operating expenses 49,685 47,707
 Interest expense 852 1,251
 Total expenses 126,997 123,586
 Earnings before income taxes 18,078 10,533
 Provision for income taxes 6,689 3,559
 Net earnings $ 11,389 $ 6,974
 Net earnings per common and
 common equivalent share $ .72 $ .45
 Weighted average number of
 common shares outstanding 15,924 15,429
 Three Months Ended June 30
 1993 1992(a)
 Revenues:
 Commissions $ 38,462 $ 37,693
 Fees 29,970 26,084
 Investment income and other 5,207 4,198
 Total revenues 73,639 67,975
 Expenses:
 Salaries and employee benefits 35,987 38,050
 Other operating expenses 25,832 24,302
 Interest expense 415 614
 Total expenses 62,234 62,966
 Earnings before income taxes 11,405 5,009
 Provision for income taxes 4,211 1,831
 Net earnings $ 7,194 $ 3,178
 Net earnings per common
 and common equivalent share $ .45 $ .21
 Weighted average number of
 common shares outstanding 16,063 15,377
 (a) Restated for poolings of interests.
 -0- 7/20/93
 /CONTACT: Michael J. Cloherty, Vice President-Finance, Arthur J. Gallagher & Co., 708-773-3800/
 (AJG)


CO: Arthur J. Gallagher & Co. ST: Illinois IN: INS SU: ERN

JG-DD -- DE019 -- 3424 07/20/93 13:32 EDT
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Publication:PR Newswire
Date:Jul 20, 1993
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