Gallagher announces executive leadership changes, strong Q3 results
- March 13, 2024
- Posted by: Web workers
- Category: Finance
Arthur J. Gallagher & Co. said Thursday it is making senior executive changes as it reported its third-quarter results.
The broker named Thomas J. Gallagher president, effective Jan. 1. He is the brother of J. Patrick Gallagher Jr., the brokerage’s chairman, president and CEO.
Patrick M. Gallagher has been named executive vice president and chief operating officer, also effective Jan. 1. He is the son of J. Patrick Gallagher Jr., who will continue as board chairman and CEO.
Thomas J. Gallagher has been serving as corporate vice president and president, global retail property/casualty brokerage, while Patrick M. Gallagher has been CEO, brokerage services-Americas.
“I have no plans to retire,” J. Patrick Gallagher Jr. said. “I will continue to be CEO and chairman, focused on Gallagher’s strategy and global expansion.”
In response to a question during a call with analysts, Mr. Gallagher acknowledged the promotions had been telegraphed within the company. “There’s not a lot of secrets at Gallagher,” he said.
The company reported after the markets closed that its third-quarter revenue rose 20.9% to $2.45 billion. Net earnings increased 24.7% to $520.4 million.
It was “another great quarter,” Mr. Gallagher said.
The company closed 12 acquisitions during the quarter, with estimated annualized revenue of $572 million.
Gallagher announced Tuesday that it will buy Baton Rouge, Louisiana-based Cadence Insurance Inc., a wholly-owned subsidiary of Cadence Bank, for $904 million.
In September, Gallagher agreed to acquire bank-owned brokerage Eastern Insurance Group LLC for $510 million.
“We also have a very strong merger pipeline,” Mr. Gallagher said.
Excluding these two pending mergers, the brokerage has “around 45 terms signed or being prepared, representing more than $450 million of annualized revenues,” he said. While not all of these may ultimately close, “we believe we’ll get our fair share,” he said.
Mr. Gallagher said submissions to the broker’s excess and surplus lines business, Risk Placement Services Inc., “are up substantially this year.”
“We’re not seeing business go back to the primary,” he said.
