Arthur J Gallagher says first-quarter profit grew 21.7% to $US49.3 million ($52.5 million) as the broking division powered an “excellent start” to the year.

Broking revenues increased to $US568.6 million ($605.5 million) from $US454.4 million ($483.9 million) in the corresponding period of last year, and the division’s net earnings grew to $32.6 million ($34.7 million) from $US24.6 million ($26.2 million).

Risk management earnings fell to $US12.1 million ($12.9 million) from $US13.9 million ($14.8 million), while revenues gained 4.2% to $US160 million ($170 million).

The combined brokerage and risk management segments posted 20% growth in adjusted total revenues, including 4% organic growth in commissions and fees.

Chairman and CEO Pat Gallagher says insurance carriers are focusing on profitable underwriting, amid a steady rate environment, and are quoting “rational prices on a line-by-line basis”.

“In addition, we are seeing our clients slowly expand their businesses and payrolls,” he said. “Our global team is energised and well positioned for 2014.”

The company made a number of acquisitions during the first quarter and has continued to expand its international operations.

Last week Arthur J Gallagher agreed to buy the Wesfarmers insurance broking and premium funding operations for $1.01 billion, having earlier purchased Auckland-based Mike Henry Insurance Brokers.