Group boss “thrilled” with company’s performance in the period
Insurance News
By
Terry Gangcuangco
Arthur J. Gallagher & Co. has published its financial results for the second quarter of 2023.
Here’s how the global brokerage performed in the period in terms of net earnings:
|
Segment
|
Q2 2023 net earnings/(loss)
|
Q2 2022 net earnings/(loss)
|
|---|---|---|
|
Brokerage
|
$290.3 million
|
$311.7 million
|
|
Risk Management
|
$36.7 million
|
$28.6 million
|
|
Corporate
|
$(91.2 million)
|
$(55.2 million)
|
|
Total company
|
$235.8 million
|
$285.1 million
|
Commenting on the numbers, Gallagher chair, president, and chief executive J. Patrick Gallagher, Jr., said in a release: “We had a fantastic second quarter. Our core brokerage and risk management segments combined to post 20% reported revenue growth, 10.8% organic revenue growth, a 14% reported net earnings margin, and we improved our adjusted EBITDAC margin 52 basis points.
“Also during the quarter, we completed 15 new mergers with approximately $349 million of estimated annualized revenue.”
EBITDAC is net earnings before interest, income taxes, depreciation, amortization, and the change in estimated acquisition earnout payables, while EBITDAC margin is EBITDAC divided by total revenues for the brokerage segment and revenues before reimbursements for the risk management segment.
The CEO went on to report: “Second quarter global insurance renewal premiums were up 12%, ahead of the 8% to 10% renewal premium change we were seeing throughout 2022 and first quarter 2023. Mid-year reinsurance renewals showed hard market conditions similar to what we saw in January 2023 renewals.
“And, during the second quarter and thus far in July, our data is not showing a slow-down in our customers’ business activity. We are seeing higher exposure units, payrolls, and employee counts.
“Looking ahead, we expect insurance and reinsurance pricing increases to continue in 2023 and perhaps throughout 2024. Continued pricing increases, combined with global exposure growth, provide a favorable backdrop for our talented production team to outperform. Overall, I am thrilled with our second quarter performance and excited about our future.”
Globally, Gallagher employs more than 43,000 people who serve clients in over 130 countries.
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