Gallagher releases Q1 earnings
Gallagher releases Q1 earnings | Insurance Business Asia
Insurance News
Gallagher releases Q1 earnings
Chair and CEO calls period “a great first quarter”
Insurance News
By
Terry Gangcuangco
Arthur J. Gallagher & Co. has published its financial results for the first quarter of 2024.
Here’s how Gallagher performed in the first three months:
Segment
Q1 2024 net earnings / (loss)
Q1 2023 net earnings / (loss)
Brokerage
US$652.6 million
US$515.3 million
Risk management
US$39.3 million
US$33.5 million
Corporate
US$(79.2 million)
US$(62.2 million)
Total company
US$612.7 million
US$486.6 million
Gallagher’s revenues before reimbursements in Q1 amounted to US$3.2 billion, an increase from last year’s US$2.7 billion. EBITDAC (net earnings before interest, income taxes, depreciation, amortisation, and the change in estimated acquisition earnout payables), meanwhile, grew from US$874.9 million to US$1.1 billion.
J. Patrick Gallagher, Jr. (pictured), chair and chief executive at Gallagher, had this to say about the numbers: “We had a great first quarter to begin 2024. Our core brokerage and risk management segments combined to post 20% revenue growth, including 9.4% organic revenue growth. At the same time, we grew net earnings by 26% and adjusted EBITDAC by 19%.
“First quarter primary insurance renewal premiums were up 7%. Property increases were up nearly 10% and casualty increases were approaching 7%, overcoming headwinds from professional lines like D&O (directors and officers) and cyber.”
The CEO went on to note that Gallagher’s (re)insurance partners continue to behave “rationally,” in that they are pushing for rate increases where necessary in terms of line of business, industry, and geography.
“Customers are buying more insurance,” he added. “Our first quarter data is showing solid customer business activity and mid-term policy endorsements, audits, and cancellations combined were again ahead of last year’s levels. We are also seeing continued labour market strength and further increases in new claims arising, also pointing to a resilient economic backdrop for our clients.
“As I look across our business, we remain well-positioned to win new clients and retain our existing customers. I believe we have the best team in the business, with leading talent and expertise, stellar service, superior analytics, vast amounts of data, and a wide global reach. We are in an enviable industry position, and I am excited about the remainder of 2024 and beyond.”
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