9.5% brokerage segment organic growth (7.1% Q4 2024, 8.8% Q1 2024)
Brokerage adjusted Ebitdac of $1.44 billion, Ebitdac margin 43.4%
Risk management organic growth of 3.9% (6.0% in Q4 2024, 13.3% Q1 2024)
Risk management Ebitdac $76.5 million, Ebitdac margin 20.5%
By Michael Loney
May 1 - (The Insurer) - Arthur J Gallagher has reported 9.5% organic growth for its brokerage segment, an acceleration both sequentially and compared to a year ago, while its risk management organic growth fell to 3.9%.
Rolling Meadows, Illinois-based Gallagher reported total company adjusted earnings per share of $3.67 for the quarter, up from $3.45 in Q1 2024.
Total reported brokerage and risk management revenues before reimbursements increased to $3.68 billion from $3.17 billion in Q1 2024.
The brokerage segment produced 9.5% organic growth in the quarter. This compared with 7.1% organic growth in Q4 2024 and 8.8% in Q1 2024.
The segment’s adjusted Ebitdac was $1.44 billion, up from $1.12 billion, and the Ebitdac margin increased to 43.4% from 39.8%.
Total brokerage revenue before reimbursements increased 16% to $3.32 billion in the quarter, up from $2.87 billion.
The risk management segment produced organic growth of 3.9% compared with 6.0% in Q4 2024 and 13.3% in Q1 2024.
Risk management Ebitdac increased to $76.5 million from $72.7 million, while the Ebitdac margin was 20.5% compared with 20.7%.
Total risk management revenue increased to $373.4 million in the quarter from $352.8 million in Q1 2024.
"We had a fantastic first quarter," said Patrick Gallagher, chairman and CEO of Gallagher. "Our core brokerage and risk management segments combined to deliver 14% revenue growth, including organic revenue growth of 9%.”
The overall adjusted Ebitdac margin increased 338 basis points to 41.1%, and adjusted Ebitdac grew year over year by 26%, which was the 20th consecutive quarter of double-digit growth.
The company completed 11 new mergers in the quarter with approximately $100 million of estimated annualized revenue.
This was followed in early April by the completion of the acquisition of Woodruff Sawyer, adding more than $250 million of estimated annual revenue.
"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,” said CEO Gallagher.
“Thus, we continue to see a bifurcation between commercial property and casualty renewal premium changes, with property declining 2% and casualty increasing 8% during first quarter 2025.”
The executive reiterated that Gallagher expects the AssuredPartners deal to close in the second half of 2025.
The $13.45 billion acquisition was announced in December. In March, Gallagher received a request for additional information as part of the Hart-Scott-Rodino filing.
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