Arthur J. Gallagher reports improved total revenue of $2.45bn in Q3
In its Q3 2023 results, Arthur J. Gallagher & Co. reported total revenues before reimbursements of $2.45 billion, up from 2.01 billion in the same quarter last year.
The firm’s brokerage segment accounted for $2.12 billion of the total Q3 revenue, up from $1.74 billion last year, while the risk management segment accounted for $331 million of the total revenue, up from $275.5 million.
Net earnings for the brokerage segment in Q3 were $339 million, again improved from last year’s $282.5 million. For the risk management segment, net earnings in Q3 were $41.5 million, up from $26.9 million in the previous year.
Elsewhere, Arthur J. Gallagher & Co. disclosed total EBITDAC (earnings from continuing operations before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables) of $606.1 million, up from $508.7 million in Q3 of last year.
J. Patrick Gallagher, Jr., Chairman, President and CEO, commented, “We had an excellent third quarter. Our core brokerage and risk management segments combined posted 22% reported revenue growth, 10.5% organic revenue growth, a 15.5% reported net earnings margin, and we improved our adjusted EBITDAC margin by 78 basis points.
“Also during the quarter, we completed 12 new mergers with approximately $57 million of estimated annualized revenue.”
Gallagher continued, “Third quarter global insurance renewal premiums were up 10%, at the high end of the 8 to 10% renewal premium change we were seeing throughout 2022 and early 2023.
“During the third quarter, and so far during the fourth quarter, our data on mid-term policy endorsements, policy cancellations and claim counts is not indicating a slow-down in our customers’ business activity.”
He concluded, “Looking ahead, our growth opportunities are immense. With continued insurance and reinsurance price increases, economic growth, increasing geopolitical tensions, and a growing appreciation for risk, I believe our team is in a great position to provide our clients with superior insurance and risk management solutions.
“I am very pleased with our third quarter performance and excited about our long-term growth prospects!”
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