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Jun 30, 2023
Arthur J. Gallagher Q2 2023 Earnings Report
Arthur J. Gallagher reported a strong second quarter performance driven by revenue growth and strategic acquisitions.
Key Takeaways
Arthur J. Gallagher & Co. announced strong second-quarter results, with a 20% increase in reported revenue growth in the core brokerage and risk management segments. The company completed 15 new mergers, contributing approximately $349 million in estimated annualized revenue. Insurance renewal premiums increased by 12%, and the company anticipates continued pricing increases throughout 2023 and potentially into 2024.
Core brokerage and risk management segments posted 20% reported revenue growth.
Organic revenue growth reached 10.8%.
Adjusted EBITDAC margin improved by 52 basis points.
15 new mergers completed, adding approximately $349 million of estimated 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
Arthur J. Gallagher anticipates continued insurance and reinsurance pricing increases throughout 2023 and potentially into 2024, which, combined with global exposure growth, provides a favorable environment for the company.
Positive Outlook
- Insurance and reinsurance pricing increases are expected to continue in 2023 and potentially into 2024.
- Global exposure growth provides a favorable backdrop for the production team.
- Continued pricing increases.
- Global exposure growth.
- Talented production team to outperform.
Challenges Ahead
- Changes in worldwide and national economic conditions, including the onset of a recession or economic downturn
- Inflation and related monetary policy responses, and failures of financial institutions and other counterparties
- Disasters or other business interruptions, including with respect to its operations in India
- Its actual acquisition opportunities
- Integration risks in its reinsurance brokerage and benefit consulting services businesses
Revenue & Expenses
Visualization of income flow from segment revenue to net income