Arthur J Gallagher is seeking more acquisitions after buying OAMPS and Crombie Lockwood from Wesfarmers last year, Chairman and CEO Patrick Gallagher told an earnings update.

However, CFO Doug Howell reported “some softening in Australia and New Zealand”.

“You are seeing some market pressures there,” Mr Howell said last week.

Mr Gallagher says the large acquisitions of last year are integrating well.

“We are seeing good opportunities to do smaller bolt-on acquisitions in the UK, Australia, New Zealand, Canada and, of course, the US.”

The company reported a first-quarter profit of $US21.9 million ($27.96 million), down 55% due to higher costs, particularly from its affiliated clean coal plants.

Net earnings from broking grew 12% to $US36.7 million ($46.86 million).

The OAMPS and Crombie Lockwood New Zealand premium funding businesses earned revenue of $US9.5 million ($12.13 million) in the quarter.

Mr Gallagher says he is comfortable with the current rate environment and believes it is rational.

Insurers are focusing on profitable underwriting, which allows Gallagher to demonstrate its expertise and value, he says.

“We are seeing our clients slowly expand their businesses and payrolls.”