Arthur J. Gallagher has revealed that its revenue in Q2 of 2024 stood at $2.73 billion, up from £2.4 billion in Q2 of 2023, driven by strong performance in its brokerage segment.
Of this total revenue before reimbursements figure, Gallagher’s brokerage segment made up $2.37 billion, while its risk management segment made up $358.6 million.
Meanwhile, Gallagher’s brokerage segment saw net earnings of $332.8 million in Q2 of 2024, up from $290.3 million in the same quarter of last year, while its risk management segment saw Q2 net earnings of $47.8 million.
These two figures combined, minus a $95.2 million loss in its corporate segment, Gallagher’s total net earnings in Q2 of 2024 were $285.4 million, marking another increase from Q2 2023’s earnings of $235.8 million.
The firm also completed 12 new mergers with approximately $72 million of estimated annualised revenue during Q2 of 2024 and now reportedly has a merger pipeline of more than $500 million of annualised revenue.
J. Patrick Gallagher, Jr., Chairman and CEO, commented, “We had an excellent second quarter. Our core brokerage and risk management segments combined to post 14% reported revenue growth and 7.7% organic revenue growth.
“Our net earnings margin improved by 35 basis points to 13.9%, and we improved our adjusted EBITDAC margin by more than 100 basis points to 31.4%.”
Gallagher, Jr. continued, “Our insurance and reinsurance carrier partners continue to behave rationally, pushing for rate increases where it’s needed by line of business, industry and geography.
“Within our client base, second quarter global insurance renewal premiums were up 5%, unchanged from a month ago. Property renewal premium increases are moderating and casualty increases are showing signs of advancing.
“Reinsurance carriers maintained underwriting standards and were disciplined on pricing, all while meeting increased client demand with ample capacity.”
Gallagher, Jr concluded, “Our second quarter daily brokerage revenue indications from audits, endorsements and cancellations remain positive, indicating continued strong customer business activity.
“Additionally, new claims arising within our third-party claims administration business, which are typically tied to business activity, continue to grow year over year.
“The business is in great shape and we are in an enviable position. Our net new business is up from the prior year, renewal premiums continue to increase and our M&A pipeline is growing. I am proud of our year-to-date financial performance and remain bullish about 2024 and beyond.”
