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ARTHUR J. GALLAGHER & CO. ANNOUNCES THIRD QUARTER RESULTS

 ITASCA, Ill., Oct. 13 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today announced its financial results for the third quarter and nine months ended Sept. 30, 1993.
 For the nine months ended Sept. 30, 1993, revenues were $234,143,000, compared to $212,722,000 last year, an increase of 10 percent. Net income was $23,234,000, up $6,994,000, for the first nine months from $16,240,000 last year. Earnings per share for the nine months were $1.46, up 39 percent from $1.05 in 1992.
 For the third quarter of 1993, total revenues increased 13 percent from $78,603,000 to $89,068,000. Net income was $11,845,000, an increase of 28 percent from net income of $9,266,000 reported for the third quarter of 1992. Quarterly earnings per share were $.74 for 1993 compared to $.60 for 1992, a 23 percent increase.
 Robert E. Gallagher, chairman and chief executive officer, stated that this was the best reported quarter in the company's history despite the lackluster economy, uncertainties in the nation's health care industry, and the ongoing soft pricing environment in the commercial insurance arena. He noted that the company's efforts to develop new risk management clients and products as well as the increased emphasis placed on account retention and cost controls all contributed to this outstanding quarter.
 Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, and has 136 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)
 Nine Months Ended Sept. 30,
 1993 1992(A)
 Revenues:
 Commissions $129,896 $123,115
 Fees 92,761 79,731
 Investment income and other 11,486 9,876
 Total revenues 234,143 212,722
 Expenses:
 Salaries and employee benefits 119,145 113,536
 Other operating expenses 76,768 72,657
 Interest expense 1,351 1,861
 Total expenses 197,264 188,054
 Earnings before income taxes 36,879 24,668
 Provision for income taxes 13,645 8,428
 Net earnings $23,234 $16,240
 Net earnings per common and
 common equivalent share $1.46 $1.05
 Weighted average number of
 common shares outstanding 15,940 15,424
 Three Months Ended Sept. 30,
 1993 1992(A)
 Revenues:
 Commissions $51,459 $47,092
 Fees 33,895 28,794
 Investment income and other 3,714 2,717
 Total revenues 89,068 78,603
 Expenses:
 Salaries and employee benefits 42,685 38,908
 Other operating expenses 27,083 24,950
 Interest expense 499 610
 Total expenses 70,267 64,468
 Earnings before income taxes 18,801 14,135
 Provision for income taxes 6,956 4,869
 Net earnings $11,845 $9,266
 Net earnings per common and
 common equivalent share $.74 $.60
 Weighted average number of
 common shares outstanding 15,971 15,415
 (A) Restated for poolings of interests.
 -0- 10/13/93
 /CONTACT: Michael J. Cloherty, vice president-Finance of Arthur J. Gallagher & Co., 708-773-3800/
 (AJG)


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

JG-DC -- DE035 -- 1725 10/13/93 13:26 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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