Stifel Nicolaus Reiterates Buy on Arthur Gallagher & Co.

Stifel Nicolaus is out with its report today on Arthur Gallagher & Co. (NYSE: AJG), reiterating Buy.

In its report, Stifel Nicolaus writes, "Overall, the insurance industry seems to be slowly grinding toward a moderate hard market. Workers Compensation rates are rising in response to very high (115-120%) combined ratios, and property rates are also generally rising following recent years' high weather-related losses. On the other hand, insurers are still competing pretty aggressively for new business, and standard insurers aren't yet pulling back from quasi-specialty risks, which normally happens during hard markets."

Stifel Nicolaus maintains a $35 PT on AJG.

Shares of AJG closed Friday at $27.74.