A. J. Gallagher sees net earnings hit $1.47bn in 2024 amid strong segment growth

Global insurance broker A. J. Gallagher & Co. has reported net earnings for 2024 of $1.47 billion, up from $966 million in 2023, driven by further improvements in both its brokerage and risk management segments.

Net earnings in the firm’s brokerage segment rose to $1.69 billion in 2024, up from $1.17 billion in 2023, while the risk management segment climbed to $174.5 million, marking another year-over-year improvement.

The $389.8 million net loss in the firm’s corporate segment, which compared to a $357.4 million net loss in 2023, slightly offset the above net earnings in 2024.

Elsewhere, A. J. Gallagher revealed that revenues before reimbursements for 2024 were $11.4 billion, up from $9.92 billion in 2023.

The firm’s brokerage segment contributed $9.93 billion to this total revenue figure, up from $8.64 billion in 2023, while the risk management segment contributed $1.45 billion, also up over 2023.

In Q4 2024 alone, A. J. Gallagher’s net earnings were $258.2 million, much improved from a net loss of $39.6 million in Q4 2023.

Revenues before reimbursements were also up in Q4 2024, reaching $2.68 billion. The brokerage segment added $2.3 billion to this total revenue figure in Q4 2024, while the risk management segment contributed $369.4 million.

J. Patrick Gallagher, Jr., Chairman and CEO, commented, “We had an excellent fourth quarter, to close out a great year! Our core brokerage and risk management segments combined to deliver our 16th consecutive quarter of double-digit revenue growth, including organic revenue growth of 7%.

“Our fourth quarter net earnings margin and adjusted EBITDAC margins increased to 13.5% and 31.4%, respectively, and adjusted EBITDAC grew 17%!

“We also completed 20 new mergers in the quarter, bringing our full year total to 48 mergers and $387 million of estimated annualized revenue. And in early December, we announced the acquisition of AssuredPartners, a commercial middle-market retail and specialty broker with $2.9 billion of pro-forma revenue!”

Gallagher continued, “Overall, the global P/C insurance market continues to grow with fourth quarter primary renewal premium increases, both rate and exposure combined, consistent with the past two quarters.

“Thus far, January 2025 primary renewal premium increases are ticking slightly higher than fourth quarter and are above 5% driven by increases in casualty classes like umbrella and commercial auto.

“January 1, 2025 reinsurance renewals were orderly and reflected an environment that favoured property and specialty reinsurance buyers, while casualty reinsurance programs generally experienced increases.

“I would like to thank our 56,000 colleagues across the globe, whose creativity, expertise and unwavering client focus helped us deliver another excellent year of financial performance. I am very excited about 2025 and beyond!”

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.