Gallagher reports higher revenue; rates continue to rise in 2025

Arthur J. Gallagher & Co. reported a double-digit revenue increase for the fourth quarter of 2024 as the company closed 20 acquisitions and insurance prices continued to rise.

Premiums continued to rise in January, J. Patrick Gallagher Jr., chairman and CEO of the brokerage, said on a call with analysts Thursday.

Gallagher reported $2.72 billion in revenue for the fourth quarter, an 11.7% increase over the same period in 2023 and up 7% on an organic basis, which excludes the impact of acquisitions, among other things.

In its core brokerage unit, Gallagher reported $2.3 billion in revenue, up 12% compared with the 2023 quarter and up 7.1% on an organic basis. U.S. retail revenue increased 5% on an organic basis.

Risk management, which includes its third-party administrator Gallagher Bassett Services Inc., reported $369.4 million, up 8.5% and 6% organically.

Insurance premium increases varied in the fourth quarter, Mr. Gallagher said.

Property and professional lines were flat, workers compensation was up 1%, general liability increased 4%, auto liability was up 9% and umbrella premiums were up 10%, he said.

“Thus far, in January, renewal premium increases are ticking slightly higher than the fourth quarter and are above 5%, driven by increases in casualty lines like umbrella and commercial auto,” Mr. Gallagher said.

Gallagher reported $258.2 million in net earnings for the quarter, compared with a $39.6 million loss in the prior year period.

The company closed 20 acquisitions, representing $200 million in annualized revenue, in the quarter and 46 for the full year, which brought in $387 million of annualized revenue, compared with 50 deals and $826 million in 2023. In December, Gallagher also announced the $13.45 billion acquisition of AssuredPartners Inc., which is expected to close in the first quarter.

For the full year, Gallagher reported revenue of $11.55 billion, up 14.7% compared with 2023, and net earnings of $1.47 billion, up 52.2%.