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Jun 30, 2022
Arthur J. Gallagher Q2 2022 Earnings Report
Arthur J. Gallagher & Co. reported financial results for the second quarter, demonstrating revenue growth, net earnings increase, and adjusted EBITDAC growth.
Key Takeaways
Arthur J. Gallagher & Co. announced strong second-quarter results with a 22% increase in revenue for the core brokerage and risk management segments, driven by organic growth and acquisitions. Net earnings grew by 35%, adjusted EBITDAC increased by 23%, and adjusted EPS rose by 19%. The company also completed 9 new tuck-in mergers with approximately $53 million of annualized revenue.
Core brokerage and risk management segments combined posted 22% revenue growth.
Organic revenue growth was nearly 11%.
Adjusted EBITDAC growth was 23%.
Completed 9 new tuck-in mergers with approximately $53 million of annualized revenue.
Revenue by Segment
Forward Guidance
Company is not seeing meaningful signs of an economic slowdown.
Positive Outlook
- Second quarter mid-term policy endorsements, audits and cancellations continue to trend more favorable than a year ago.
- Combined with a strong labor market.
- Strong labor market is favorably impacting our human resource and benefits consulting business and our claims management operations.
- Global P/C renewal premium increases of 10.5% were above first quarter 2022 and fourth quarter 2021 levels.
- Nearly all lines of coverages saw renewal premium increases equal to or higher than first quarter, with professional liability the lone exception.
Challenges Ahead
- Changes in worldwide and national economic conditions, including the pace of economic recovery following COVID-19 or the onset of a recession or economic downturn
- Our actual acquisition opportunities; or other factors like the Ukraine/Russia conflict, trade wars or tariffs
- Political unrest in the U.S. or other countries around the world
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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