The company reported total revenue of US$2.77 billion, up from US$2.45 billion in the same quarter last year, a 13% increase in its core segments, driven by organic growth, acquisitions, and favourable market conditions.
In the brokerage segment, revenues rose to US$2.4 billion, up from US$2.1 billion in Q3 2023. Net earnings in the brokerage segment reached US$383 million, up from US$339 million last year, with an EBITDAC of US$691.5 million and diluted earnings per share (EPS) of US$1.70.
Adjusted revenue for the brokerage segment, which factors in divestitures, workforce changes, and acquisition costs, was US$2.37 billion, with an adjusted EBITDAC of US$797.7 million and EPS of US$2.50.
Revenues in the risk management segment, meanwhile, grew to US$369.7 million from US$331 million in Q3 2023. The segment reported net earnings of US$44.6 million and an EBITDAC of US$74.1 million, translating to an EPS of US$0.20. Adjusted revenue was US$369.6 million, with EBITDAC at US$76.9 million and an EPS of US$0.22.
Reported revenue in the corporate segment was US$0.4 million, with a net earnings loss of US$113.5 million, slightly widening from a US$97.3 million loss in Q3 2023. Adjustments for corporate transactions, legal costs, and tax adjustments resulted in an adjusted net earnings loss of US$103.4 million, or US$0.46 per share.
For the combined brokerage and risk management segments, reported revenue totalled US$2.77 billion, with net earnings of US$427.6 million, EBITDAC of US$765.6 million, and diluted EPS of US$1.90. Adjusted totals were US$2.74 billion in revenue, US$609.7 million in net earnings, US$874.6 million in EBITDAC, and an EPS of US$2.72.
J Patrick Gallagher, Jr (pictured above), chairman, president, and CEO, commented on the results, noting that the third quarter saw sustained financial growth, with combined brokerage and risk management revenues rising 13%, organic growth at 6%, and net earnings up by 12%.
“Most importantly, our bedrock culture is thriving,” Gallagher said. “Through the first nine months of the year, revenues have increased 16%, organic growth is 8%, net earnings have increased 19% and adjusted EPS is up 17%.”
Gallagher indicated that global renewal premiums in the third quarter remained stable, as previously shared in September. He noted that recent hurricanes in the US have not yet significantly influenced insurance prices for October but are expected to add complexity to January property reinsurance renewals.
“Client exposure changes, including mid-term policy endorsements, continue to be positive, and new arising claim counts are growing; both indicating solid economic activity across our clients’ businesses,” he said.
Gallagher also addressed recent storms and flooding, expressing support for affected clients and colleagues, with Gallagher professionals assisting clients in managing their coverages and claims.
“Looking ahead, we are very well positioned. Our net new business is up from prior year, renewal premiums continue to increase and our M&A pipeline is robust. The opportunities ahead of us are immense and I am very excited about our long-term prospects,” he said.
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