Global insurance and reinsurance broker, Arthur J. Gallagher & Co., has reported adjusted net earnings of $367.9 million for the fourth quarter of 2022 within its brokerage operations, which alongside higher earnings in its risk management segment, more than offset an elevated loss within the corporate division.
Company-wide, adjusted net earnings increased from $290.3 million in Q4 2021 to $331.9 million in Q4 2022.
Within its brokerage business, Gallagher has reported that Q4 adjusted net earnings rose from $298 million in 2021 to $367.9 million in 2022.
In its risk management operations, adjusted net earnings moved from $26 million in Q4 2021 to $34.3 million in Q4 2022.
However, and partially offsetting the gains made in the two aforementioned segments, Gallagher’s corporate division reported an adjusted net loss of $70.3 million in Q4 2022, higher than the adjusted net loss of $33.7 million seen in Q4 2021.
“We had a terrific fourth quarter, to cap off another excellent year of financial performance!” said J. Patrick Gallagher, Jr., Chairman, President and Chief Executive Officer (CEO). “During the quarter, our core brokerage and risk management segments combined to post 16% growth in revenue, of which 11.7% was organic revenue growth. We completed 17 new tuck-in mergers in the quarter and our newly acquired reinsurance brokerage operations finished the year ahead of our pro forma revenue and EBITDAC estimate.”
Consistent with the first three quarters of 2022, global primary P&C renewal premium increases were more than 9% in Q4 2022 for Gallagher.
“Our primary carrier partners in many cases are facing higher reinsurance costs and seeing rising loss costs trends, so we believe there is good reason to expect continued premium increases. Positive policy endorsements and other mid-term policy adjustments were higher year over year for the seventh straight quarter, indicative of the underlying strength of our P/C clients’ businesses,” continued J. Patrick Gallagher, Jr.
“The labor market imbalance continues to drive strong demand for our benefits and HR consulting services, while our risk management segment, Gallagher Bassett, continues to see rising claim counts from both existing and new clients.
“I would like to thank our 43,000-plus colleagues for their passion, creativity and hard work on behalf of our clients. An outstanding 2022 positions us very well for 2023 and beyond!” he added.
