Gallagher reports Q3 revenue up 13% to $2.7bn
Arthur J. Gallagher reported $2.7bn in total revenue during the third quarter, a 13% increase compared with the year-earlier period.
For combined brokerage and risk management segments, organic revenue increased 6% and net earnings grew 12%. For the first nine months of 2024, revenues have increased 16%, organic growth increased 8% and net earnings increased 19%, J. Patrick Gallagher Jr., Gallagher’s chairman, president and CEO, said during the results call.
On the pricing front, he said the brokerage was seeing renewal premium increases across most commercial lines with the exception of directors and officers liability insurance, which was down 5%, and cyber, which was flat. Commercial auto renewal premiums increased 7%, general liability was up 6%, property increased 4%, umbrella increased 10% and workers compensation was up 2%.
With regard to the reinsurance market, Gallagher said the 1 July renewal season saw modest property price declines concentrated at the top end of insurance towers, while casualty renewals saw terms and conditions tightened and some modest price increases concentrated in the US.
Reinsurance for casualty risks will be cautious going into the next year, as well, he said.
Risk management unit Gallagher Bassett saw revenue growth of 12% and organic growth of 6% as a result of client retention, increases in customer business activity, rising plan counts and new business.
The brokerage also reported four mergers during the third quarter, representing $47m of estimated revenue.
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