Arthur J Gallagher had an “outstanding” first quarter, according to President, Chairman and CEO Patrick Gallagher.

The company reported earnings before interest, income taxes, depreciation, amortisation and the change in estimated acquisition earnout payable of $US207.8 million ($273 million) – up 23% on the corresponding period last year.

Revenue increased 8.1% to $US1.01 billion ($1.33 billion).

Mr Gallagher says Australia and New Zealand had a flat quarter, “but we’re starting to see pricing bottom out” in the region.

He told analysts there are four components to the company’s growth strategy: organic expansion, mergers and acquisitions, quarterly productivity improvements and culture.

“We excelled on each and every one of those this quarter,” he said.

“We grew 4.8% organically in our combined brokerage and risk management operations [and] we had another 6% of growth through net acquisitions, for a total adjusted revenue growth of 11%.”

Brokerage revenue grew 12% for the quarter, and the risk management segment experienced 4.7% organic growth.

Arthur J Gallagher completed eight acquisitions in the first quarter, with annualised revenue of $US30 million ($39.4 million). This compares with 11 acquisitions and annualised revenue of $US33.6 million ($44.2 million) in the corresponding period last year.

“We are hitting on all cylinders around the world,” Mr Gallagher said.

“The current domestic rate environment is rational and we are seeing some early signs of cycle-bottoming in select geographies outside the US.”

International brokerage organic revenue growth of 5% included 3% UK retail growth. London and Bermuda posted 5% revenue growth, while Canada experienced 6% growth.