ITASCA, Ill., May 18 /PRNewswire-FirstCall/ -- Arthur J. Gallagher & Co.
(NYSE: AJG) today reached a comprehensive agreement with the Illinois Attorney
General and the Director of Insurance of Illinois to resolve issues related to
industry-wide investigations surrounding contingent commissions. There was no
lawsuit involved nor were there any findings of unlawful or deceitful conduct
or that any client had been disadvantaged. Gallagher admitted no wrongdoing
or liability and is not required to issue an apology.
Specifics of the agreement include:
-- Creating a $27 million fund for certain retail clients. No portion of
the fund represents a fine or a penalty.
-- Eliminating contingent commissions for retail clients (in October 2004,
Gallagher voluntarily announced it would not enter into retail
contingent commission agreements beginning January 1, 2005).
-- Disclosing compensation for services to retail clients.
-- Providing enhanced training for employees in business ethics and
compliance matters.
-- Creating a Compliance Committee of the Board of Directors.
J. Patrick Gallagher, Jr., President and Chief Executive Officer, said,
"We are pleased to have concluded this matter with both the Illinois Attorney
General and the Illinois Director of Insurance and we appreciate their
professionalism. Gallagher has been serving our clients for over 77 years,
and in 1984 we institutionalized our 25 point "Gallagher Way." The first
tenet states that we are dedicated to providing excellence in risk management
services to our clients. These new measures will benefit our clients and we
believe all insurance organizations should adopt similar measures."
Gallagher will host a webcast conference call on Thursday, May 19, 2005 at
9:00 a.m. CT to review the settlement. To listen, please go to
http://www.ajg.com .
Arthur J. Gallagher & Co., an international insurance brokerage and risk
management services firm, is headquartered in Itasca, Illinois, has operations
in seven countries and does business in more than 110 countries around the
world through a network of correspondent brokers and consultant. Gallagher is
traded on the New York Stock Exchange under the symbol AJG.
This press release may contain certain forward-looking statements relating
to future results. The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those expected, depending on a
variety of factors such as changes in worldwide and national economic
conditions, changes in premium rates and in insurance markets generally and
changes in securities and fixed income markets as well as developments in the
area of tax legislation. Please refer to our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K, for a more
detailed discussion of these facts.
SOURCE Arthur J. Gallagher & Co.
-0- 05/18/2005
/CONTACT: Investor Relations, Marsha Akin of Arthur J. Gallagher & Co.,
+1-630-773-3800/
/Web site: http://www.ajg.com /
(AJG)
CO: Arthur J. Gallagher & Co.; Illinois Attorney General; Illinois Insurance
Department
ST: Illinois
IN: FIN INS
SU: LAW CCA MAV
CM
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2968 05/18/2005 17:15 EDT http://www.prnewswire.com