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Mar 31, 2023
Arthur J. Gallagher Q1 2023 Earnings Report
Arthur J. Gallagher & Co. reported financial results for the quarter ended March 31, 2023.
Key Takeaways
Arthur J. Gallagher & Co. had an excellent start to 2023, with core brokerage and risk management segments posting 12% reported revenue growth and 9.7% organic revenue growth. Net earnings grew by 12%, and adjusted EBITDAC increased by 15%, with an improved adjusted EBITDAC margin of 29 basis points.
Core brokerage and risk management segments combined to post 12% reported revenue growth.
Core brokerage and risk management segments combined to post 9.7% organic revenue growth.
Net earnings increased by 12%.
Adjusted EBITDAC grew by 15%, and the adjusted EBITDAC margin improved 29 basis points.
Revenue by Segment
Forward Guidance
The company expects insurance and reinsurance pricing increases to continue throughout 2023 and beyond and believes they are very well positioned for the remainder of 2023.
Positive Outlook
- Insurance and reinsurance pricing increases are expected to continue.
- Talented team will leverage expertise, data and insights.
- Well positioned for the remainder of 2023
- First quarter primary insurance market conditions are overall consistent with 2022 with renewal premiums up more than 9%.
- Continue to see growth in customers’ exposure units and payrolls.
Challenges Ahead
- Property reinsurance market is very hard.
- Seeing tighter terms and conditions across a broader range of territories.
- Tighter terms and conditions even into casualty reinsurance lines.
- Changes in worldwide and national economic conditions, including the onset of a recession or economic downturn
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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