Gallagher Reports Q1 Results | Insurance business America
Chairman and CEO point to “a great first quarter”
Insurance News
By Terry Gangcuangco
Arthur J. Gallagher & Co. has reported its financial results for the first quarter of 2024.
Here’s how Gallagher performed in the first three months:
|
segment |
Net profit/(loss) Q1 2024 |
Net profit/(loss) Q1 2023 |
|---|---|---|
|
Mediation |
$652.6 million |
$515.3 million |
|
Risk management |
$39.3 million |
$33.5 million |
|
Pursue |
$(79.2 million) |
$(62.2 million) |
|
Total company |
$612.7 million |
$486.6 million |
Gallagher’s revenue before reimbursements was $3.2 billion in the first quarter, up from $2.7 billion a year earlier. Meanwhile, EBITDAC (net income before interest, income taxes, depreciation and the change in estimated earnout liabilities from acquisitions) rose to $1.1 billion from $874.9 million.
Commenting on the numbers, J. Patrick Gallagher, Jr. (pictured), Chairman and CEO of Gallagher, said: “We had a great first quarter to start 2024. Our core brokerage and risk management segments delivered a combined 20% revenue growth, including 9 .4% organic sales growth. At the same time, we increased net income by 26% and adjusted EBITDAC by 19%.
“Primary insurance renewal premiums rose 7% in the first quarter. Property increases increased nearly 10% and accident increases approached 7%, overcoming headwinds from professional lines such as D&O (directors and officers) and cyber.”
The CEO further noted that Gallagher’s (re)insurance partners continue to behave “rationally” by pushing for rate increases where necessary based on the industry, industry and region.
“Customers are buying more insurance,” he added. “Our first quarter data shows solid customer activity and medium-term contract confirmations, reviews and cancellations combined were once again above prior year levels. We are also seeing continued strength in the labor market and a continued increase in the number of new claims, which also indicates a robust economic environment for our customers.
“When I look at our entire company, we continue to be well positioned to attract new customers and retain our existing customers. I believe we have the best team in the industry with leading talent and expertise, outstanding service, best-in-class analytics, massive amounts of data and a broad global reach. We are in an enviable industry position and I look forward to the rest of 2024 and beyond.”
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2024-04-26 05:54:16
www.insurancebusinessmag.com
