Financial Data and Key Metrics Changes - The meeting confirmed the election of 10 nominees to the Board of Directors and the ratification of Ernst and Young LLP as the independent public accountants for the fiscal year ending December 31, 2025 [7][8] - The compensation of named executive officers was approved during the meeting [8] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting [9][10] Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the meeting [9][10] Company Strategy and Development Direction and Industry Competition - The company did not provide detailed comments on its strategy or competitive landscape during the meeting [9][10] Management's Comments on Operating Environment and Future Outlook - Management did not offer insights into the operating environment or future outlook during the meeting [9][10] Other Important Information - The meeting was conducted virtually, and participants were reminded to follow the rules of conduct [4][5] - The meeting was attended by various board members and representatives from Ernst and Young LLP [3][5] Q&A Session All Questions and Answers Question: Were there any questions from stockholders? - No questions were received from stockholders during the Q&A session [9]

Investors: Ray Iardella, VP - Investor Relations Media: Paul Day, Senior Media Relations Manager 630-285-3661/ [email protected] 630-285-5946/ [email protected] SOURCE Arthur J. Gallagher & Co. ROLLING MEADOWS, Ill., May 6, 2025 /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Dallas, Texas-based Dean R. Casey & Associates. Terms of the transaction were not disclosed. Dean R. Casey & Associates is an employee benefits brokerage firm serving primarily small- and mid-size group cli ...

In August 2024, I first wrote about Arthur J. Gallagher (NYSE: AJG ), giving it a buy rating based on its consistent earnings growth. The stock has performed well with a total return of 14% compared to only 1% for theI'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following characteristics:1. Companies that are growing in ...

[Part I. Financial Information](index=9&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=9&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited consolidated financial statements for Q1 2025 and Q1 2024, detailing earnings, assets, cash flows, and equity Q1 2025 vs Q1 2024 Consolidated Earnings | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $3,727.4 | $3,256.7 | +14.5% | | **Earnings Before Income Taxes** | $872.7 | $772.7 | +12.9% | | **Net Earnings** | $708.9 | $612.7 | +15.7% | | **Diluted Net Earnings Per Share** | $2.72 | $2.74 | -0.7% | Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in millions) | Dec 31, 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Cash and Cash Equivalents** | $16,691.8 | $14,987.3 | +11.4% | | **Total Assets** | $74,095.7 | $64,255.2 | +15.3% | | **Total Liabilities** | $51,742.0 | $44,075.6 | +17.4% | | **Total Stockholders' Equity** | $22,353.7 | $20,179.6 | +10.8% | Q1 2025 vs Q1 2024 Consolidated Cash Flows | Cash Flow Activity | Q1 2025 (in millions) | Q1 2024 (in millions) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $871.8 | $789.3 | | **Net Cash used by Investing Activities** | $(275.4) | $(191.9) | | **Net Cash from Financing Activities** | $1,107.0 | $(5.4) | - During Q1 2025, the company acquired 11 firms for a total purchase price of **$438.3 million** and signed definitive agreements to acquire AssuredPartners for **$13.45 billion** and Woodruff Sawyer for **$1.2 billion**[44](index=44&type=chunk)[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's analysis of Q1 2025 financial performance, segment results, non-GAAP measures, and liquidity Q1 2025 Adjusted (Non-GAAP) Performance Summary | Segment | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | | **Brokerage** | Adjusted Revenues | $3,308.2M | $2,820.6M | +17% | | | Organic Revenue Growth | 9.5% | N/A | N/A | | | Adjusted EBITDAC Margin | 43.4% | 39.8% | +359 bps | | **Risk Management** | Adjusted Revenues | $373.2M | $351.5M | +6% | | | Organic Revenue Growth | 3.9% | N/A | N/A | | | Adjusted EBITDAC Margin | 20.4% | 20.7% | -18 bps | | **Total Company** | Adjusted Diluted EPS | $3.67 | $3.45 | +6% | - The company highlights a **positive outlook for 2025**, expecting continued property/casualty rate increases and opportunities for organic growth through strong new business and client retention[138](index=138&type=chunk) [Brokerage Segment Analysis](index=49&type=section&id=Brokerage%20Segment%20Analysis) Details the Brokerage segment's 16% revenue growth to $3.31 billion, driven by organic growth and acquisition contributions Brokerage Segment Financials (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $3,314.6 | $2,864.9 | +15.7% | | **Earnings Before Income Taxes** | $1,099.1 | $876.1 | +25.5% | | **Net Earnings** | $816.1 | $652.6 | +25.0% | | **Adjusted EBITDAC** | $1,436.6 | $1,123.8 | +27.8% | - Organic growth in base commissions and fees was **9.1%**, driven by strong customer retention, new business, and increasing renewal premiums[152](index=152&type=chunk)[155](index=155&type=chunk) - Interest income increased significantly to **$238.4 million** from $84.7 million YoY, with **$142.6 million** earned on proceeds from the AssuredPartners financing[157](index=157&type=chunk) [Risk Management Segment Analysis](index=58&type=section&id=Risk%20Management%20Segment%20Analysis) Covers the Risk Management segment's 6% revenue increase to $373.4 million, led by organic fee growth Risk Management Segment Financials (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Revenues before reimbursements** | $373.4 | $352.8 | +5.8% | | **Net Earnings** | $41.1 | $39.3 | +4.6% | | **Adjusted EBITDAC** | $76.5 | $72.7 | +5.2% | - Organic fee revenue grew **3.9%** in Q1 2025, with favorable trends of strong client retention and positive new business expected to continue[172](index=172&type=chunk)[173](index=173&type=chunk) - Compensation expense increased by **$17.2 million**, driven by acquisitions and higher base compensation to support organic growth[176](index=176&type=chunk) [Corporate Segment Analysis](index=63&type=section&id=Corporate%20Segment%20Analysis) Explains the Corporate segment's increased net loss of $148.3 million, driven by higher interest and operating expenses Corporate Segment Financials (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Expenses** | $282.7 | $157.0 | +$125.7 | | **Interest Expense** | $158.4 | $92.2 | +$66.2 | | **Operating Expense** | $73.2 | $27.9 | +$45.3 | | **Net Loss** | $(148.3) | $(79.2) | +$69.1 | - The increase in interest expense was primarily due to **$65.8 million** of interest on senior notes funded for the AssuredPartners deal[189](index=189&type=chunk) - Operating expenses in Q1 2025 included **$20.5 million** in acquisition-related professional fees and a **$23.0 million** net unrealized foreign exchange loss[185](index=185&type=chunk) [Liquidity and Capital Resources](index=66&type=section&id=Liquidity%20and%20Capital%20Resources) Details the company's strong liquidity, with $16.7 billion in cash and significant financing activities for acquisitions - Cash provided by operating activities increased to **$871.8 million** in Q1 2025 from $789.3 million in Q1 2024, driven by core business growth[199](index=199&type=chunk) - The company raised substantial capital for the AssuredPartners acquisition, including net proceeds of **$8.35 billion** from a stock offering[220](index=220&type=chunk) - On April 3, 2025, the company amended its Credit Agreement, increasing the facility size from **$1.7 billion to $2.5 billion** and extending the maturity to April 2030[213](index=213&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Outlines exposure to market risks, primarily interest rate sensitivity on its $13.1 billion debt and foreign currency fluctuations - The company holds **$13.1 billion** in fixed-rate borrowings; a hypothetical 1% rate increase would decrease its fair value by approximately **$1,679.6 million**[229](index=229&type=chunk)[230](index=230&type=chunk) - A hypothetical **10% adverse change** in the average foreign exchange rate for Q1 2025 would have increased pre-tax earnings by approximately **$37.2 million**[233](index=233&type=chunk) - To manage currency risk, the company uses **forward contracts and options** to hedge a significant portion of future revenues and disbursements in key international markets[234](index=234&type=chunk) [Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures as of March 31, 2025, with no material changes reported - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[235](index=235&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[236](index=236&type=chunk) [Part II. Other Information](index=77&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) Discloses an ongoing IRS promoter investigation into the company's 'micro-captive' advisory services business since 2013 - The company's IRC 831(b) ('micro-captive') advisory services business has been under an **IRS promoter investigation since 2013**, and the company is fully cooperating[108](index=108&type=chunk)[149](index=149&type=chunk) [Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) Refers to the comprehensive risk factor discussion in the company's 2024 Annual Report on Form 10-K - The report refers to the risk factors previously disclosed in the company's **Annual Report on Form 10-K** for the fiscal year ended December 31, 2024[238](index=238&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no shares were repurchased under the public plan in Q1 2025, with all purchases related to employee plans Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Plans | | :--- | :--- | :--- | :--- | | Jan 2025 | 5,503 | $288.96 | — | | Feb 2025 | 3,146 | $332.24 | — | | Mar 2025 | 84,746 | $327.82 | — | | **Total** | **93,395** | **$325.68** | **—** | - The company **did not repurchase any shares** under its $1.5 billion common stock repurchase plan during the quarter, which remains in effect[239](index=239&type=chunk)[243](index=243&type=chunk) [Exhibits](index=79&type=section&id=Item%206.%20Exhibits) Lists all filed exhibits, including an amended credit agreement and required CEO/CFO certifications - An **Amended and Restated Credit Agreement**, dated April 3, 2025, was filed as an exhibit[242](index=242&type=chunk) - **Certifications by the Chief Executive Officer and Chief Financial Officer** under Rule 13a-14(a) and Section 1350 are included as exhibits[242](index=242&type=chunk)

Core Insights - Arthur J. Gallagher & Co. (AJG) reported first-quarter 2025 adjusted net earnings of $3.67 per share, exceeding the Zacks Consensus Estimate by 2.8% and reflecting a year-over-year increase of 6.3% [1] - Total revenues reached $3.7 billion, marking a 16% year-over-year growth, although it fell short of the Zacks Consensus Estimate by 1.7% [2] Financial Performance - Total expenses increased by 15% year over year to $2.8 billion, driven by higher compensation and operating costs [3] - Adjusted EBITDAC grew 24.3% from the prior-year quarter to $1.4 billion [3] Segment Results - Brokerage segment reported adjusted revenues of $3.3 billion, up 17.3% year over year, but missed the Zacks Consensus Estimate by 2% [4] - Adjusted EBITDAC for the brokerage segment climbed 27.8% to $1.4 billion, with a margin expansion of 360 basis points to 43.4% [4] - Risk Management segment saw adjusted revenues increase by 6.1% year over year to $373.2 million, but also missed the Zacks Consensus Estimate by 2.3% [5] - Adjusted EBITDAC for the Risk Management segment rose 5.2% year over year to $76.5 million, with a margin contraction of 20 basis points to 20.5% [5] Financial Update - As of March 31, 2025, total assets were $74.1 billion, a 15.3% increase from the end of 2024 [7] - Cash and cash equivalents increased by 11.4% to $16.7 billion from the end of 2024 [7] - Shareholders' equity rose by 10.8% to $22.3 billion as of March 31, 2025, compared to December 31, 2024 [7] Acquisition Activity - In the reported quarter, the company completed 10 acquisitions with estimated annualized revenues of $62.7 million [9]

Core Insights - Arthur J. Gallagher (AJG) reported revenue of $3.68 billion for the quarter ended March 2025, reflecting a year-over-year increase of 14.4% [1] - The earnings per share (EPS) for the quarter was $3.67, up from $3.49 in the same quarter last year, with an EPS surprise of +2.80% compared to the consensus estimate of $3.57 [1] Financial Performance Metrics - The total company commissions were reported at $2.25 billion, a +12.8% change year-over-year, but below the average estimate of $2.27 billion [4] - The risk management segment reported revenues before reimbursements of $373.40 million, which is a +5.8% change year-over-year, but lower than the average estimate of $382.24 million [4] - Total company fees were $984.80 million, representing a +3.5% year-over-year change, but below the average estimate of $1.06 billion [4] - The brokerage segment's supplemental revenues were $113.90 million, exceeding the average estimate of $96.15 million, with a year-over-year increase of +21.3% [4] - The brokerage segment's contingent revenues were $92.90 million, slightly above the average estimate of $91.80 million, reflecting an +8% change year-over-year [4] Stock Performance - Over the past month, shares of Arthur J. Gallagher have returned -6.8%, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Arthur J. Gallagher (AJG) came out with quarterly earnings of $3.67 per share, beating the Zacks Consensus Estimate of $3.57 per share. This compares to earnings of $3.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.80%. A quarter ago, it was expected that this insurance and risk-management company would post earnings of $2.02 per share when it actually produced earnings of $2.13, delivering a surprise of 5.45%.Over the l ...

Financial Data and Key Metrics Changes - The company reported a 14% growth in revenue for the combined brokerage and risk management segments, with 9% organic growth and a net earnings margin of 23% [4][5] - Adjusted EBITDAC margin increased to 41.1%, up 338 basis points year over year, with adjusted EBITDAC growth of 26% [4][5] - GAAP earnings per share were $3.29, while adjusted earnings per share were $4.16 [5] Segment Performance Changes - The Brokerage segment saw reported revenue growth of 16% and organic growth of 9.5%, with adjusted EBITDAC margin expanding to 43.4% [5][6] - Retail PC operations delivered 5% organic growth, with U.S. operations exceeding 5% and international operations around 4% [6][7] - The Reinsurance, Wholesale, and Specialty businesses achieved a total organic growth of 13%, with Gallagher Reed contributing 20% organic growth [7] Market Data and Key Metrics Changes - In the primary insurance market, overall global property renewal premiums decreased by 2%, while D&O premiums fell by 3%. Workers' compensation premiums increased by 5%, and personal lines and casualty lines rose by 8% [8][9] - For small to mid-sized accounts, renewal premiums were up 5%, while large accounts saw a 1% increase [9][10] Company Strategy and Industry Competition - The company aims to leverage its expertise in navigating the complex insurance market to provide optimal coverage for clients while mitigating price increases [11] - The reinsurance market dynamics favored buyers, with reinsurers maintaining discipline on terms while meeting increased client demand [11][12] - The company is well-positioned to compete and win, emphasizing its niche expertise and extensive data analytics capabilities [16] Management's Comments on Operating Environment and Future Outlook - Management noted solid client business activity with no signs of a meaningful global economic slowdown, despite some upward revenue adjustments being lower than the previous year [14][16] - The U.S. labor market remains strong, with over 7 million open jobs, indicating a robust demand for new workers [15][16] - The company expects full-year 2025 brokerage segment organic growth in the range of 6% to 8% [17] Other Important Information - The company completed 11 tuck-in mergers during the first quarter, representing approximately $100 million of estimated annualized revenue [19] - The acquisition of Woodruff Sawyer was completed in early April, contributing to a total of $400 million of acquired revenue [19] - The company has over 40 term sheets signed or being prepared, representing more than $450 million of annualized revenue [20] Q&A Session Summary Question: Breakdown of 20% growth in reinsurance - Management indicated that over half of the organic growth came from new business, with significant client wins and increased renewal premiums contributing to the growth [42][44] Question: Update on Assured Partners acquisition - Management is preparing a response to the DOJ and expects to submit it by mid-third quarter, starting a 30-day review period [47][49] Question: Impact of timing on organic growth - Management clarified that the timing impact was primarily in reinsurance, with expectations of a similar effect in the second quarter, but no overall impact on full-year organic growth [50][54] Question: Renewal pricing bifurcation - Management confirmed that larger accounts are experiencing less rate pressure compared to smaller accounts, which are seeing higher increases [56][58] Question: Organic profile at Assured Partners - Management expressed confidence that the organic profile at Assured Partners is similar to their retail business, with strong retention rates [64][68]

Arthur J. Gallagher (AJG) Q1 2025 Earnings Call May 01, 2025 05:30 PM ET Company Participants Patrick Gallagher, Jr - CEO & Chairman of The BoardDouglas K. Howell - CFOElyse Greenspan - Managing DirectorC. Gregory Peters - Managing Director - InsuranceKatie Sakys - US P&C Insurance, Senior AssociateAndrew Andersen - Equity Research Vice PresidentMeyer Shields - Managing Director Conference Call Participants Michael Zaremski - Managing Director & Senior Equity Research AnalystMark Hughes - AnalystDavid Monte ...

Exhibit 99.1 NEWS RELEASE ARTHUR J. GALLAGHER & CO. ANNOUNCES FIRST QUARTER 2025 FINANCIAL RESULTS ROLLING MEADOWS, IL, May 1, 2025 — Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended March 31, 2025. Management will host a webcast conference call to discuss these results on Thursday, May 1, 2025 at 5:30 p.m. ET/4:30 p.m. CT. To listen to the call, and for printer-friendly formats of this release and the "CFO Commentary" and "Supplemental Quarterly Data," which ...