Commissions and fees grew 12 percent in the second quarter by $39.1 million, going from $321.6 million to $360.7 million.

For the six months, net income was up $80.9 million, from a loss of $27.2 million or 29 cents a share, to $53.7 million or 55 cents a share. Revenues were down 3 percent compared to last year, or $19.8 million, from $717.9 million to $698.1 million.

"This is not an easy market for us to grow in," said J. Patrick Gallagher Jr., president and chief executive officer, during an analysts call.

Mr. Gallagher commented, "On the one hand, getting the necessary coverage for our wind exposed clients is very, very difficult. On the other hand, dealing with a softening market and all other coverage lines is equally challenging to our growth. But we believe we have the strategies to grow, regardless of the market."

The CEO credited the company's transparency since the agreement last year, where the broker must detail its compensation to clients, with becoming a sales tool to help with the company's growth.

After Gallagher's competitor, market leader Marsh, agreed to an $850 million settlement over contingent fee abuses, some had thought Marsh's business might migrate to other brokers, but Mr. Gallagher said there has not been a seismic shift with new business moving from Marsh to others. However, large accounts do want a relationship with more than one broker, and Gallagher has seen some benefit from that, management said.

More middle market accounts are going to fee payments for services instead of relying on commissions for payment, which Mr. Gallagher said are more stable in a soft market. The move could also result in increased fees for the broker as it does more services for clients, he added.

Twenty companies have agreed to pay the broker higher commission fees in consideration of the loss of contingents, however, Mr. Gallagher mentioned that the broker is having problems collecting those fees due to a lack of communication at the underwriting desk.

Commenting on the overall market, Mr. Gallagher said the catastrophe property market is "the tightest I can ever recall in my career," but the rest of the business is flat, contrary to some surveys that report a declining premium market.

Earlier the firm announced it would make a dividend payment of 30 cents a share to be paid on Oct. 10 to shareholders of record as of Sept. 29.