Arthur J. Gallagher & Co. has disclosed its financial results for the quarter and the full year ending December 31, 2023.
In the fourth quarter of 2023, the brokerage segment of Gallagher reported revenues of US$2,051.5 million compared to US$1,704.3 million in the same period of 2022. Net earnings for this segment were US$24.8 million, a decrease from US$143.3 million in the fourth quarter of 2022.
Earnings before interest, taxes, depreciation, amortisation, and changes (EBITDAC) in the segment were US$539.9 million, up from US$457.6 million in the previous year. Diluted net earnings per share were US$0.11, down from US$0.66 in the fourth quarter of 2022.
After adjustments, the brokerage segment's revenues stood at US$2,047.5 million with net earnings of US$445.1 million and EBITDAC of US$646.9 million, indicating a per-share earning of US$2.01. This compares to adjusted revenues of US$1,712.0 million, net earnings of US$357.3 million, EBITDAC of US$532.6 million, and per-share earnings of US$1.65 in the fourth quarter of 2022.
On the risk management segment, Gallagher reported revenues of US$340.4 million, an increase from US$290.6 million in the fourth quarter of 2022. The net earnings for this segment were US$42.3 million, up from US$36.4 million in the previous year, and EBITDAC was reported at US$70.2 million, compared to US$53.8 million in 2022. Adjusted figures for this segment indicate revenues of US$340.3 million, net earnings of US$45.6 million, and EBITDAC of US$71.5 million, with per-share earnings of US$0.21.
The total company, as reported, had revenues of US$2,393.1 million, a notable increase from US$1,995.2 million in the fourth quarter of 2022. However, the company reported a net loss of US$39.6 million, compared to net earnings of US$135.5 million in the same period of the previous year. EBITDAC for the total company was US$514.3 million, up from US$452.1 million in 2022, with a per-share loss of US$0.15.
Adjusted total figures for the company show revenues of US$2,389.0 million, net earnings of US$408.4 million, and EBITDAC of US$669.0 million, with per-share earnings of US$1.85. These adjusted figures compare to revenues of US$2,002.6 million, net earnings of US$321.6 million, EBITDAC of US$530.1 million, and per-share earnings of US$1.49 in the fourth quarter of 2022.
Gallagher’s chairman and CEO J Patrick Gallagher, Jr commented on the financial results, indicating strong performance in the fourth quarter and highlighting the company's growth in revenue, particularly in its core brokerage and risk management segments. The company also completed 14 new mergers during the quarter with estimated annualised revenues of US$410 million.
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