It was a good year for brokers last year and 2013 is projected to be even better.
"On balance the P&C brokerage industry had a very good 2012," said Gregory W. Locraft Jr., executive director, Morgan Stanley Research in Boston. "The better P&C pricing environment combined with a stabilizing economy was able to overcome some micro-uncertainty or micro-fears and drive better top-line growth for every player in the industry.
"You will see growing organic growth rates across the group ... ," he said. "2012 was a good year and the tailwind of better pricing and a better economy sets up 2013 to be even stronger."
Arthur J. Gallagher & Co. -- which saw a "strong finish to an excellent 2012" -- and Brown & Brown --which saw "a big improvement" in organic growth -- both reported double-digit revenue growth for the year, according to Morgan Stanley. Total annual revenue results for the Top 3 -- Aon, Marsh & McLennan and Willis were more modest.
MMC, which saw organic growth of 2 percent, lost market share in the fourth quarter, according to Morgan Stanley, "with results well below peers," with Aon up 4 percent, Willis up 8 percent, Gallagher up 5 percent and Brown & Brown up 5 percent.
"There were winners and losers relative to each other within the fourth quarter," Locraft said. "Within the rising tide of better organic growth across the sector, there were some that stood out and some that lagged but don't mistake that the tide is rising. ... Even laggards don't look so bad compared to a couple of years ago."
--By Anne Freedman
April 12, 2013
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