Arthur J. Gallagher & Co. Reports Double-Digit Revenue Increases in First Quarter of 2024
Arthur J. Gallagher & Co. Sees Double-Digit Revenue Increases in First Quarter of 2024
Arthur J. Gallagher & Co. has reported impressive double-digit revenue increases in both of its major business segments in the first quarter of 2024. The brokerage company attributes this growth to the ongoing increase in insurance rates across most lines and its strategic acquisitions.
The company reported a total revenue of $3.26 billion for the quarter, marking a significant 20.3% increase over the same period last year. This growth was driven by a 9.4% increase in organic revenue, excluding the impact of mergers and acquisitions and foreign currency fluctuations.
In its core brokerage business, Gallagher reported $2.86 billion in revenue, a 20.6% increase, while its risk management segment, including Gallagher Bassett Insurance Services Inc., saw a revenue increase of 18.3% to $391.4 million.
Gallagher closed 12 acquisitions in the first quarter, adding $69.2 million in annualized revenue. This made the company the most acquisitive publicly traded brokerage in the period.
The company’s net earnings for the quarter also saw a significant increase, rising by 25.9% to $612.7 million compared to the same period in 2023.
Global primary renewal premiums increased by approximately 7% in the quarter, with property premiums up by 10%, umbrella by 9%, general liability by 7%, package policies by 8%, and workers’ compensation by 2%. However, directors and officers liability insurance premiums were down by 5%, and cyber liability premiums remained flat.
Despite the Federal Trade Commission’s recent announcement of a ban on noncompetes, Gallagher’s executives believe that this move will not hinder the company’s ability to acquire companies or hire and retain staff. The company’s contracts with production staff already contain nonsolicitation agreements rather than noncompetes, which they believe will remain enforceable.
Overall, Arthur J. Gallagher & Co.’s strong performance in the first quarter of 2024 reflects the company’s continued growth and success in the insurance industry.
