Global insurance and reinsurance broker, Arthur J. Gallagher & Co., has reported net earnings of $235.8 million for the second quarter of 2023, compared with $285.1 million a year earlier.
Gallagher’s Company-wide, adjusted net earnings increased from $349.7 million in Q2 2022 to $417.0 million in Q2 2023.
Within its brokerage business, Gallagher has reported that Q2 adjusted net earnings rose from $377.6 million in 2022 to $462.3 million in 2023.
In its risk management operations, adjusted net earnings moved from $29.2 million in Q2 2022 to $38.5 million in Q2 2023.
However, and partially offsetting the gains made in the two aforementioned segments, Gallagher’s corporate division reported an adjusted net loss of $83.8 million in Q2 2023, higher than the adjusted net loss of $57.1 million seen in Q2 2022.
The firm’s overall reported revenues increased from $2,008.4 million to $2,406.9 million, and were up by 20% for the combined brokerage and risk management segments, including organic revenue growth of 10.8%.
Looking at the first six months of 2023 together, net earnings fell slightly from $724.2 million to $722.4 million, and revenue were also up from $4,412.9 million to $5,079.8 million.
“We had a fantastic second quarter,” said J. Patrick Gallagher, Jr., Chairman, President and CEO. “Also during the quarter, we completed 15 new mergers with approximately $349 million of estimated annualized revenue.”
“Second quarter global insurance renewal premiums were up 12%, ahead of the 8% to 10% renewal premium change we were seeing throughout 2022 and first quarter 2023. Mid-year reinsurance renewals showed hard market conditions similar to what we saw in January 2023 renewals.”
“And, during the second quarter and thus far in July, our data is not showing a slow-down in our customers’ business activity. We are seeing higher exposure units, payrolls and employee counts,” Gallagher said.
“Looking ahead, we expect insurance and reinsurance pricing increases to continue in 2023 and perhaps throughout 2024. Continued pricing increases, combined with global exposure growth, provide a favorable backdrop for our talented production team to outperform. Overall, I am thrilled with our second quarter performance and excited about our future!”
