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Dec 31, 2019
Arthur J. Gallagher Q4 2019 Earnings Report
Arthur J. Gallagher & Co. reported strong Q4 2019 results, driven by organic growth and strategic acquisitions.
Key Takeaways
Arthur J. Gallagher & Co. announced outstanding fourth-quarter results, with a 17% increase in total revenue growth and 5.8% organic revenue growth, driven by the combined brokerage and risk management segments. Net earnings also grew by 31%, and the company completed 11 acquisitions with estimated annualized revenues of $117 million.
Total revenue growth of 17% driven by brokerage and risk management segments.
Organic revenue growth of 5.8%.
Net earnings growth of 31%.
Completed 11 acquisitions with estimated annualized revenues of $117 million.
Revenue by Segment
Forward Guidance
The company's 2019 momentum is expected to continue in 2020, with firm and trending higher property & casualty rates, growing client businesses, and historically low unemployment levels.
Positive Outlook
- Property & casualty rates around the world are firm.
- Property & casualty rates continue to trend higher in most lines and geographies.
- Clients’ businesses are growing.
- Unemployment is at historically low levels nearly everywhere.
- Unique culture encourages colleagues worldwide to seek excellence.
Challenges Ahead
- Changes in worldwide and national economic conditions, including as a result of pandemics, Brexit, trade wars or tariffs.
- Changes in premium rates and in insurance markets generally.
- Changes in the insurance brokerage industry’s competitive landscape.
- Settling certain patent infringement litigation
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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