Arthur J. Gallagher & Co. has reported full year 2023 total revenues of $9.9 billion, up substantially from the $8.4 billion recorded in 2022.
Gallagher’s core brokerage segment reportedly made up $8.6 billion of the total revenue, while its risk management segment accounted for $1.3 billion.
Meanwhile, the firm’s net earnings for 2023 were $1.9 billion, up from $1.6 billion in 2022. The full year EBITDAC also improved to $3 billion, up from $2.5 billion in 2022.
For Q4 2023 alone, Gallagher saw revenues of $2.39 billion, marking a 19.9% increase over the same period in 2022.
Gallagher’s core brokerage sector represented $2 billion of the Q4 revenue, while the risk management sector, which includes Gallagher Bassett Services Inc., represented $340.4 million.
The firm also reported 14 acquisitions in Q4, down from 17 in the prior-year period. However, the deals in Q4 2023 represented $410 million in annualised revenue, compared with $141.3 million in 2022.
Gallagher disclosed a Q4 net loss of $39.6 million, compared with a $135.5 million profit in the same period of 2022. The firm noted that the change in estimated acquisition earnout payables increased significantly.
J. Patrick Gallagher, Jr., Chairman and CEO, commented, “We had a strong fourth quarter, to wrap up another fantastic year! During the quarter, our core brokerage and risk management segments combined to deliver 20% growth in revenue, of which 8.1% was organic revenue growth. We also completed 14 new mergers in the quarter with estimated annualized revenues of $410 million.
“Global primary P/C renewal premium increases were around 8.5% in the quarter, similar to the 8% to 10% renewal premium change we had been reporting throughout 2022 and 2023. Insurance and Reinsurance carriers continue to behave rationally in our view, pushing for rate increases where it is needed to generate an underwriting profit.”
Gallagher continued, “Fourth quarter 2023 positive mid-year policy endorsements and audits were ahead of last year’s levels, suggesting strong customer business activity.”
“That same strength is also evident in the US labor market, with continued growth in non-farm payrolls, a low unemployment rate and a wide gap between the amount of job openings and the number of people unemployed and looking for work.
“It’s also evident within our risk management segment, Gallagher Bassett, which continues to see claim count growth, new business wins and excellent client retention.”
He concluded, “I would like to thank our 52,000-plus colleagues across the globe for another fantastic year. I am thrilled with our 2023 performance and even more excited about 2024 and beyond!”
