April 25 (Reuters) - Insurance broker Arthur J. Gallagher posted a jump in first-quarter profit on Thursday, helped by higher commissions and fees, sending its shares up 2.7% in extended trading.

Rising wages and a tight labor market have allowed companies and individuals to revive their spending on insurance policies.

Brokers like Arthur J. Gallagher serve as intermediaries between their customers and insurance carriers, helping clients find appropriate policies while mitigating price increases.

The company's commissions jumped 14% to $1.99 billion in the reported quarter from a year ago, while fees rose 34.8% to $951.2 million.

"Customers are buying more insurance. We are also seeing continued labor market strength and further increases in new claims arising, also pointing to a resilient economic backdrop for our clients," said CEO J. Patrick Gallagher Jr.

The Federal Reserve's rate hikes have also boosted the investment income that brokers earn from investing their cash and fiduciary funds - cash it holds on behalf of its clients.

The company's interest income, premium finance revenues and other income rose to $93.4 million in the quarter from $66.4 million last year.

Peer Brown & Brown also posted a jump in first-quarter profit on Monday, helped by higher commissions and fees.

Rolling Meadows, Illinois-based Arthur J. Gallagher provides insurance brokerage, consulting, and risk management services to companies and individuals globally.

The company's total revenue jumped 20.3% to $3.26 billion in the quarter.

Arthur J. Gallagher's net earnings attributable to controlling interests rose to $608.4 million, or $2.74 per share, in the three months ended March 31, from $486.5 million, or $2.24 per share, a year earlier.

Shares of Arthur J. Gallagher have risen 5.4% so far this year, compared to 5.2% and 15.7% growth for its peers Aon and Brown & Brown, respectively. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shailesh Kuber)