Arthur J. Gallagher & Co. has disclosed its financial results for the quarter and the full year ending December 31, 2023.
In the fourth quarter of 2023, the brokerage segment of Gallagher reported revenues of $2,051.5 million compared to $1,704.3 million in the same period of 2022. Net earnings for this segment were $24.8 million, a decrease from $143.3 million in the fourth quarter of 2022.
Earnings before interest, taxes, depreciation, amortization, and changes (EBITDAC) in the segment were $539.9 million, up from $457.6 million in the previous year. Diluted net earnings per share were $0.11, down from $0.66 in the fourth quarter of 2022.
After adjustments, the brokerage segment's revenues stood at $2,047.5 million with net earnings of $445.1 million and EBITDAC of $646.9 million, indicating a per-share earning of $2.01. This compares to adjusted revenues of $1,712.0 million, net earnings of $357.3 million, EBITDAC of $532.6 million, and per-share earnings of $1.65 in the fourth quarter of 2022.
On the risk management segment, Gallagher reported revenues of $340.4 million, an increase from $290.6 million in the fourth quarter of 2022. The net earnings for this segment were $42.3 million, up from $36.4 million in the previous year, and EBITDAC was reported at $70.2 million, compared to $53.8 million in 2022. Adjusted figures for this segment indicate revenues of $340.3 million, net earnings of $45.6 million, and EBITDAC of $71.5 million, with per-share earnings of $0.21.
The total company, as reported, had revenues of $2,393.1 million, a notable increase from $1,995.2 million in the fourth quarter of 2022. However, the company reported a net loss of $39.6 million, compared to net earnings of $135.5 million in the same period of the previous year. EBITDAC for the total company was $514.3 million, up from $452.1 million in 2022, with a per-share loss of $0.15.
Adjusted total figures for the company show revenues of $2,389.0 million, net earnings of $408.4 million, and EBITDAC of $669.0 million, with per-share earnings of $1.85. These adjusted figures compare to revenues of $2,002.6 million, net earnings of $321.6 million, EBITDAC of $530.1 million, and per-share earnings of $1.49 in the fourth quarter of 2022.
Gallagher’s chairman and CEO J Patrick Gallagher, Jr commented on the financial results, indicating strong performance in the fourth quarter and highlighting the company's growth in revenue, particularly in its core brokerage and risk management segments. The company also completed 14 new mergers during the quarter with estimated annualized revenues of $410 million.
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