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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.
Arthur J. Gallagher
Arthur J. Gallagher
Arthur J. Gallagher Revenue by Segment
Revenue by Segment
Brokerage Revenue
CapyFin.comRisk Management Revenue
CapyFin.com 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
- Changes in premium rates and in insurance markets generally
- Changes in the insurance brokerage industry’s competitive landscape
Revenue & Expenses
Visualization of income flow from segment revenue to net income