Arthur J. Gallagher & Co. reported strong financial results for the first quarter ended March 31, 2025, citing growth across its brokerage and risk management operations and continued merger activity.
The company posted a 14% year-over-year increase in combined revenue from its core segments, with organic revenue up 9%. Net earnings margin rose 175 basis points to 23%, while adjusted EBTIDAC margin climbed 338 basis points to 41.1%.
“We had a fantastic first quarter,” said J. Patrick Gallagher, Jr., chairman and CEO. “Our core brokerage and risk management segments combined to deliver 14% revenue growth, including organic revenue growth of 9%.”
During the quarter, Gallagher completed 11 mergers with an estimated US$100 million in annualised revenue. In early April, the firm closed its acquisition of Woodruff Sawyer, a deal expected to add more than US$250 million in annualised revenue.
Gallagher commented on current conditions in the global property and casualty insurance market, noting a continued divergence between property and casualty premium trends. According to the company, commercial property renewal premiums declined 2%, while casualty increased 8% during the first quarter of 2025. Exposure changes, including mid-term endorsements, remained positive. The company also reported no significant impact on customer activity due to tariffs or geopolitical developments.
Gallagher said the firm’s staff is positioned to navigate the market, supported. “I am very excited about 2025 and beyond,” he said.
The firm also provided an update on its previously announced agreement to acquire AssuredPartners for approximately US$13.45 billion.
The transaction, disclosed in December 2024, remains subject to regulatory review. On March 7, 2025, the company received a request for additional information under the Hart-Scott-Rodino Act and is currently responding. Gallagher expects the deal to close in the second half of 2025.
As of March 31, Gallagher reported US$9.55 billion in public debt and US$3.52 billion in private placements. The company had no outstanding borrowings under its line of credit and US$152.8 million in revolving loan balances tied to premium finance receivables. These receivables are collateralised and excluded from debt covenant calculations.
Meanwhile, on April 3, Gallagher amended and restated its credit agreement, extending the maturity date from June 2028 to April 2030 and increasing the total commitment from US$1.7 billion to US$2.5 billion.
Looking ahead, the company said it remains focused on its acquisition strategy and operating performance amid ongoing changes in the global insurance market.
