Gallagher books higher earnings

13 February 2023

Broker Gallagher posted strong December quarter results, driven by its main broking business including in Australia.

The Australia and New Zealand business achieved combined organic growth of about 12%, CEO J Patrick Gallagher told an earnings webcast.

The US-based broker has a network of more than 30 regional and metropolitan branches across Australia, after making key acquisitions in the past few years to strengthen its presence here.

Total company net earnings, on an adjusted basis, increased to $US331.9 million ($478 million) in the December quarter from $US290.3 million ($418 million) a year earlier. Full year company adjusted net earnings rose to $1.66 billion ($2.39 billion) from $US1.46 billion ($2.1 billion) in 2021.

The main brokerage division achieved adjusted net earnings of $US367.9 million ($530 million) in the December quarter, up from $US298 million ($429 million) a year earlier. For 2022 the division booked adjusted net earnings of $US1.76 billion ($2.53 billion), compared with $US1.42 billion ($2.04 billion) in the previous year.

“We had a terrific fourth quarter, to cap off another excellent year of financial performance,” Mr Gallagher said.

“Global primary [property and casualty] renewal premium increases were more than 9% in the quarter, consistent with the first three quarters of 2022.

“Our primary carrier partners in many cases are facing higher reinsurance costs and seeing rising loss costs trends, so we believe there is good reason to expect continued premium increases.”