ROLLING MEADOWS, Ill. - Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management, and consulting services firm, reported a strong start to 2024 with first-quarter financial results that surpassed analyst expectations, sending the company's shares up 3.8%
The company announced an adjusted earnings per share (EPS) of $3.49, which edged out the analyst consensus of $3.42. Total revenue reached $3.26 billion, also exceeding the consensus estimate of $3.18 billion.
Chairman and CEO J. Patrick Gallagher, Jr. commented on the results, highlighting a 20% revenue growth in the core brokerage and risk management segments, including 9.4% organic revenue growth. He also noted that net earnings grew by 26% and adjusted EBITDAC by 19%.
The first quarter saw primary insurance renewal premiums rise by 7%, with property increases nearing 10% and casualty increases approaching 7%. This growth was achieved despite challenges from professional lines such as Directors & Officers (D&O) and cyber insurance. Gallagher Jr. emphasized the rational behavior of insurance and reinsurance carrier partners, who are pushing for rate increases where needed by line of business, industry, and geography.
The company's revenue of $3.26 billion for the quarter represented a significant increase from the same period last year, which was $2.67 billion. This growth is attributed to solid customer business activity, mid-term policy endorsements, and a resilient economic backdrop for clients. The company's focus on winning new clients and retaining existing ones, combined with its strong industry position, positions Arthur J. Gallagher & Co. for continued success in 2024 and beyond.
Arthur J. Gallagher & Co. is headquartered in Rolling Meadows, Illinois, and provides services in approximately 130 countries worldwide through its owned operations and a network of correspondent brokers and consultants. The company's first-quarter results set a positive tone for the remainder of the year as it continues to capitalize on its global reach and expertise in the insurance industry.
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