The global broking and risk management giant Arthur J Gallagher & Co. (AJG) has published its financial results for the quarter ended March 31, 2023, with CEO, chairman and president J. Patrick Gallagher, Jr. pointing to an “excellent start to 2023”.
Reported revenues before reimbursements for AJG’s broking division rose to $2,375.2 million from $2,122.6 million in Q1 2022 while net earnings for the division increased to $515.3 million from $464.3 million in the prior year period. Meanwhile reported revenues before reimbursements for AJG’s risk management division increased to $297.6 million from $259.1 million in Q1 2022 and net earnings spiked to $33.5 million, up from $23.9 million last year.
“Our core brokerage and risk management segments combined to post 12% reported revenue growth, 9.7% organic revenue growth, 12% growth in reported net earnings, 15% growth in adjusted EBITDAC, and we improved our adjusted EBITDAC margin 29 basis points,” Gallagher said in an earnings release.
He noted that Q1 2023 primary insurance market conditions are overall consistent with 2022, with renewal premiums up more than 9%.
“The property reinsurance market is very hard and we are seeing tighter terms and conditions across a broader range of territories - even into casualty reinsurance lines,” he said. “And, we continue to see growth in our customers’ exposure units and payrolls.
“We expect insurance and reinsurance pricing increases to continue throughout 2023 and beyond. Our talented team will leverage our expertise, data and insights to help clients with these challenging insurance market conditions. I believe we are very well positioned for the remainder of 2023.”
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