Gallagher closes 2024 with record revenue

Strategic acquisitions and organic growth propel earnings

Gallagher closes 2024 with record revenue

Insurance News

By Kenneth Araullo

Arthur J Gallagher & Co has released its financial results for the fourth quarter and full-year 2024, reporting continued revenue growth across its brokerage and risk management segments. 

For the fourth quarter, total company revenues reached US$2.68 billion, up from US$2.39 billion in the same period in 2023. Net earnings for the quarter were US$258.2 million, compared to a net loss of US$39.6 million in the prior-year quarter. Adjusted net earnings totalled US$491.2 million, an increase from US$402.4 million in Q4 2023. 

The brokerage segment reported revenues of US$2.3 billion for the quarter, up from US$2.05 billion in the previous year. Net earnings for the segment rose to US$317.3 million, compared to US$24.8 million in Q4 2023.

Adjusted net earnings stood at US$531.3 million, up from US$439.6 million a year earlier. The brokerage segment’s adjusted EBITDAC also increased to US$760.3 million, from US$641.4 million in Q4 2023. 

The risk management segment reported revenues of US$369.4 million for Q4 2024, compared to US$340.4 million in the same quarter of the prior year. Net earnings were US$42.8 million, relatively unchanged from the US$42.3 million recorded in Q4 2023.

Adjusted net earnings increased to US$48.8 million from US$45.1 million, while adjusted EBITDAC rose to US$76.2 million, up from US$70.7 million in the same period in 2023. 

Gallagher full-year results

For the full year, total company revenues reached US$11.4 billion, up from US$9.93 billion in 2023. Net earnings for the year were US$1.47 billion, an increase from US$966 million in the prior year, while adjusted net earnings rose to US$2.28 billion from US$1.91 billion. Adjusted EBITDAC for 2024 was US$3.57 billion, compared to US$2.99 billion in 2023. 

The brokerage segment recorded full-year revenues of US$9.93 billion, up from US$8.64 billion in 2023. Net earnings for the segment totalled US$1.69 billion, an increase from US$1.17 billion in the previous year, while adjusted net earnings reached US$2.45 billion, up from US$2.05 billion. Adjusted EBITDAC grew to US$3.47 billion, from US$2.95 billion in 2023. 

Risk management revenues for 2024 amounted to US$1.45 billion, compared to US$1.29 billion in the prior year. Net earnings rose to US$174.5 million from US$154 million, while adjusted net earnings increased to US$192.5 million from US$162.7 million. Adjusted EBITDAC stood at US$299.7 million, compared to US$257.4 million in 2023. 

Corporate expenses for the quarter included US$14.7 million in transaction-related costs and a US$5.3 million charge related to clean energy investments. For the full year, corporate costs included US$26.3 million in transaction-related expenses and a US$3.5 million legal and tax-related expense. 

Chairman and CEO J. Patrick Gallagher, Jr. (pictured above) attributed the company’s performance to sustained growth in its brokerage and risk management businesses, noting that this was the 16th consecutive quarter of double-digit revenue growth.

“Our fourth quarter net earnings margin and adjusted EBITDAC margins increased to 13.5% and 31.4%, respectively, and adjusted EBITDAC grew 17%,” he said.

The company completed 20 mergers during the fourth quarter, bringing the full-year total to 48 acquisitions, representing an estimated US$387 million in annualised revenue. In December, Gallagher also announced the acquisition of AssuredPartners, a commercial middle-market retail and specialty broker with a pro-forma revenue of US$2.9 billion. 

Regarding market conditions, Gallagher observed that the global property and casualty insurance sector continued to expand, with primary renewal premium increases in the fourth quarter remaining in line with the previous two quarters.

He noted that January 2025 renewal premium increases were slightly higher than in Q4 2024, exceeding 5% in casualty classes such as umbrella and commercial auto. 

He also commented on reinsurance market conditions, stating that the January 2025 reinsurance renewals were orderly, with property and specialty reinsurance buyers benefiting from a favourable environment, while casualty reinsurance programmes generally experienced rate increases. 

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