Gallagher & Co. Concludes 2024 Q4 with Strong Revenue Growth and Enhanced Market Position
In a highly successful conclusion to 2024's fourth quarter, Arthur J. Gallagher & Company reported impressive revenue growth across its Brokerage and Risk Management segments.
The company achieved 12% combined revenue growth in these segments, marking the 16th consecutive quarter of double-digit revenue growth. Organic growth stood at 7%, while net earnings margin reached 13.5%. Adjusted EBITDAC (Earnings Before Interest, Taxes, Depreciation, Amortization, and Credit), which excludes interest expense, grew by an impressive 17% with a corresponding adjusted EBITDAC margin of 31.4%, up 145 basis points from the same period last year.
The company's Brokerage segment saw revenue growth of 12%, with organic growth reaching 7.1%. The Adjusted EBITDAC margin for this segment expanded by an impressive 168 basis points to 33.1%, which includes interest income related to funds raised for the acquisition of AssuredPartners. Excluding net interest income, margin expansion was 109 basis points.
Patrick Gallagher, Chairman and CEO of Arthur J. Gallagher & Company, highlighted the strong performance in various business areas during his remarks on the conference call. The company's Personal and Commercial (P/C) retail operations delivered a 6% organic overall growth rate, with its U.K., Australia, and New Zealand operations achieving high single-digit growth.
Mr. Gallagher also touched on the current P/C insurance pricing environment, which he described as strong for the global market. With renewal premium increases consistent over the past two quarters, carriers are behaving rationally by pushing for rate increases where necessary to achieve an acceptable underwriting profit.
The company's ability to differentiate itself through its lean tools, data, and expertise positions it well in this market. Mr. Gallagher emphasized that as brokers, their job is to help clients find the best coverage that fits their budget while mitigating price increases.
These results conclude a strong year for Arthur J. Gallagher & Company, demonstrating the company's resilience and adaptability in an ever-changing insurance landscape.
