Global insurance broker A. J. Gallagher & Co. has reported net earnings of $708.9 million for Q1 2025, up from $612.7 million in Q1 2024, driven by improvements in both its brokerage and risk management segments.
Gallagher’s revenues before reimbursements also increased in Q1 2025, reaching $3.69 billion, up from $3.22 billion in the same quarter of 2024.
Looking at Gallagher’s business lines separately, the brokerage segment saw net earnings of $816.1 million in Q1 2025, up from $652.6 million in Q1 2024.
At the same time, revenues before reimbursements in the brokerage segment in Q1 2025 were $3.31 billion, up from $2.86 billion in Q1 2024.
Meanwhile, net earnings in the firm’s risk management segment in Q1 2025 were $41.1 million, up from $39.3 million in Q1 2024.
Q1 2025 revenues before reimbursements in the risk management segment were $373.4 million, up from $352.8 million in the same quarter of 2024.
Slightly offsetting the improved result in the brokerage and risk management segments was Gallagher’s corporate segment, which fell to a net loss of $148.3 million in Q1 2025.
J. Patrick Gallagher, Jr., Chairman and CEO of A. J. Gallagher commented, “We had a fantastic first quarter. Our core brokerage and risk management segments combined to deliver 14% revenue growth, including organic revenue growth of 9%.
“Our first quarter net earnings margin increased 175 basis points to 23.0%, our adjusted EBITDAC margin increased 338 basis points to 41.1%, and adjusted EBITDAC grew year-over-year by 26%, the 20th consecutive quarter of double-digit growth.
“We also completed 11 new mergers in the quarter with approximately $100 million of estimated annualised revenue. And in early April, we completed the acquisition of Woodruff Sawyer, adding more than $250 million of estimated annual revenue.
J. Patrick Gallagher continued, “Overall, the global P&C insurance market continues to behave rationally with carriers looking to grow in lines and geographies where there is an acceptable return and seeking rate increases where it’s needed to generate an appropriate underwriting profit.
“Thus, we continue to see a bifurcation between commercial property and casualty renewal premium changes, with property declining 2% and casualty increasing 8% during the first quarter of 2025.
“Exposure changes, including mid-term policy endorsements, continue to be positive, and we have yet to see any meaningful changes in our customers’ business activity from tariffs or the broader geopolitical environment.
“Our talented production staff has the expertise, the tools, the data and the service capabilities to guide clients and prospects in the current environment. I am very excited about 2025 and beyond.”
