As financial results season rolls on, Arthur J Gallagher (AJG) is stepping up to the plate to reveal how it fared in Q3 2021. It was a strong quarter for the group which saw its core brokerage and risk management segments combined post 17% growth in revenue, of which 10% was organic revenue growth.
Its brokerage segment alone saw net earnings (as adjusted) of $280.6 million, up from $238.9 million in Q3 2020, and revenues (before reimbursements) of $1,495.4 million, up from $1,309 million from the prior year. For the nine months ended September 30, 2021, this segment saw net earnings (as adjusted) of $915.3 million, up from $786.7 million for the same period in the prior year, and revenues (before reimbursements) of $4,491.2 million up from $4,034.1 million last year.
AJG’s risk management arm saw net earnings (as adjusted) of $25.9 million and revenue (before reimbursements) of $248 million for the quarter. For the nine months ended September 30, 2021, the segment saw net earnings (as adjusted) of $71.8 million and revenue (before reimbursements) of $713.2 million.
As adjusted, AJG’s total brokerage & risk management results showed great strength, with revenues (before reimbursements) up to $1,743.4 million from $1,512.6 million in Q3 2020 and net earnings of $306.5 million, up from $258.2 million in Q3 2020. For the nine months ended September 30, 2021, the combined segments saw revenues (before reimbursements) of $5,204.4 million up from $4,651.0 million in the same period last year and net earnings of $987.1 million, up from $840.1 million.
Commenting on the results, AJG chairman, president and CEO, J Patrick Gallagher Jr, said: “We delivered an excellent third quarter… We completed five new tuck-in mergers and our purchase of Willis Towers Watson’s treaty reinsurance brokerage operations remains on track to close in fourth quarter 2021.”
Global P/C rates remain firm and improved economic activity is leading to additional insured exposure units, positive policy endorsements, he said, and other favorable mid-term policy adjustments. Overall, he noted that the P/C premium increases AJG saw during the third quarter of 2021 were consistent with the first half of the year.
“Our clients are healthy and focused on growth,” he said. “Our team is engaged, energized and well positioned to assist clients and prospects as they navigate their growth challenges during a difficult insurance environment.”
