Gallagher enjoys "excellent second quarter"

Gallagher enjoys “excellent second quarter” | Insurance Business Australia

Insurance News

Gallagher enjoys “excellent second quarter”

Period saw 12 new mergers cross the finish line

Insurance News

By
Terry Gangcuangco

Global insurance brokerage Gallagher has published its financial results for the second quarter of 2024 – a period described by chair and chief executive J. Patrick Gallagher, Jr. (pictured) as excellent.

Here’s how the company performed in the three months ended June 30:

Source/segment

Q2 2024 net earnings (loss)

Q2 2023 net earnings (loss)

Q2 2024 EBITDAC

Q2 2023 EBITDAC

Brokerage

US$332.8 million

US$290.3 million

US$668.1 million

US$563.8 million

Risk management

US$47.8 million

US$36.7 million

US$72.3 million

US$60.5 million

Corporate

US$(95.2 million)

US$(91.2 million)

US$(50.1 million)

US$(64 million)

Total company

US$285.4 million

US$235.8 million

US$690.3 million

US$560.3 million

Commenting on the numbers, the CEO said: “We had an excellent second quarter. Our core brokerage and risk management segments combined to post 14% reported revenue growth and 7.7% organic revenue growth. Our net earnings margin improved by 35 basis points to 13.9%, and we improved our adjusted EBITDAC margin by more than 100 basis points to 31.4%.

“We also completed 12 new mergers with approximately US$72 million of estimated annualised revenue during the quarter, and today have a merger pipeline of more than US$500 million of annualised revenue.”

He added: “Our second quarter daily brokerage revenue indications from audits, endorsements, and cancellations remain positive, indicating continued strong customer business activity. Additionally, new claims arising within our third-party claims administration business, which are typically tied to business activity, continue to grow year over year.

“The business is in great shape and we are in an enviable position. Our net new business is up from prior year, renewal premiums continue to increase, and our M&A pipeline is growing. I am proud of our year-to-date financial performance and remain bullish about 2024 and beyond.”

Headquartered in Illinois, Gallagher is present in approximately 130 countries via its owned operations and a network of correspondent brokers and consultants.

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