Gallagher reports growth as insurance market expands

Primary renewal premiums rise, with commercial auto and umbrella lines seeing notable increases

Gallagher reports growth as insurance market expands

Insurance News

By Kenneth Araullo

Arthur J Gallagher & Co has released its financial results for the fourth quarter and full-year 2024, reporting continued revenue growth across its brokerage and risk management segments. 

For the fourth quarter, total company revenues reached $2.68 billion, up from $2.39 billion in the same period in 2023. Net earnings for the quarter were $258.2 million, compared to a net loss of $39.6 million in the prior-year quarter. Adjusted net earnings totalled $491.2 million, an increase from $402.4 million in Q4 2023. 

The brokerage segment reported revenues of $2.3 billion for the quarter, up from $2.05 billion in the previous year. Net earnings for the segment rose to $317.3 million, compared to $24.8 million in Q4 2023.

Adjusted net earnings stood at $531.3 million, up from $439.6 million a year earlier. The brokerage segment’s adjusted EBITDAC also increased to $760.3 million, from $641.4 million in Q4 2023. 

The risk management segment reported revenues of $369.4 million for Q4 2024, compared to $340.4 million in the same quarter of the prior year. Net earnings were $42.8 million, relatively unchanged from the $42.3 million recorded in Q4 2023.

Adjusted net earnings increased to $48.8 million from $45.1 million, while adjusted EBITDAC rose to $76.2 million, up from $70.7 million in the same period in 2023. 

Gallagher full-year results

For the full year, total company revenues reached $11.4 billion, up from $9.93 billion in 2023. Net earnings for the year were $1.47 billion, an increase from $966 million in the prior year, while adjusted net earnings rose to $2.28 billion from $1.91 billion. Adjusted EBITDAC for 2024 was $3.57 billion, compared to $2.99 billion in 2023. 

The brokerage segment recorded full-year revenues of $9.93 billion, up from $8.64 billion in 2023. Net earnings for the segment totalled $1.69 billion, an increase from $1.17 billion in the previous year, while adjusted net earnings reached $2.45 billion, up from $2.05 billion. Adjusted EBITDAC grew to $3.47 billion, from $2.95 billion in 2023. 

Risk management revenues for 2024 amounted to $1.45 billion, compared to $1.29 billion in the prior year. Net earnings rose to $174.5 million from $154 million, while adjusted net earnings increased to $192.5 million from $162.7 million. Adjusted EBITDAC stood at $299.7 million, compared to $257.4 million in 2023. 

Corporate expenses for the quarter included $14.7 million in transaction-related costs and a $5.3 million charge related to clean energy investments. For the full year, corporate costs included $26.3 million in transaction-related expenses and a $3.5 million legal and tax-related expense. 

Chairman and CEO J. Patrick Gallagher, Jr. (pictured above) attributed the company’s performance to sustained growth in its brokerage and risk management businesses, noting that this was the 16th consecutive quarter of double-digit revenue growth.

“Our fourth quarter net earnings margin and adjusted EBITDAC margins increased to 13.5% and 31.4%, respectively, and adjusted EBITDAC grew 17%,” he said.

The company completed 20 mergers during the fourth quarter, bringing the full-year total to 48 acquisitions, representing an estimated $387 million in annualised revenue. In December, Gallagher also announced the acquisition of AssuredPartners, a commercial middle-market retail and specialty broker with a pro-forma revenue of $2.9 billion. 

Regarding market conditions, Gallagher observed that the global property and casualty insurance sector continued to expand, with primary renewal premium increases in the fourth quarter remaining in line with the previous two quarters.

He noted that January 2025 renewal premium increases were slightly higher than in Q4 2024, exceeding 5% in casualty classes such as umbrella and commercial auto. 

He also commented on reinsurance market conditions, stating that the January 2025 reinsurance renewals were orderly, with property and specialty reinsurance buyers benefiting from a favourable environment, while casualty reinsurance programmes generally experienced rate increases. 

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