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]

Core Insights - Arthur J. Gallagher (AJG) reported quarterly earnings of $3.67 per share, exceeding the Zacks Consensus Estimate of $3.57 per share, and showing an increase from $3.49 per share a year ago, representing an earnings surprise of 2.80% [1] - The company posted revenues of $3.68 billion for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 1.75%, but up from $3.22 billion year-over-year [2] - The stock has increased approximately 13% since the beginning of the year, contrasting with a -5.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.31 on revenues of $3.19 billion, and for the current fiscal year, it is $11.12 on revenues of $13.77 billion [7] - The estimate revisions trend for Arthur J. Gallagher is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Insurance - Brokerage industry is currently ranked in the bottom 14% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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 ...

Core Points - Arthur J. Gallagher & Co. declared a regular quarterly cash dividend of $0.65 per share on its Common Stock [1] - The dividend is payable on June 20, 2025, to stockholders of record as of June 6, 2025 [1] Company Overview - Arthur J. Gallagher & Co. is a global insurance brokerage, risk management, and consulting services firm [2] - The company is headquartered in Rolling Meadows, Illinois, and operates in approximately 130 countries worldwide [2] - Gallagher provides its services through owned operations and a network of correspondent brokers and consultants [2]

Core Insights - Arthur J. Gallagher & Co. has acquired New Zealand-based First Capital Financial Services and its affiliate First Capital Wealth Management, although the terms of the transaction were not disclosed [1] - First Capital provides wealth management, risk management, and employee benefits services to corporate clients and individuals in New Zealand, operating from Christchurch and Auckland [2] - The acquisition is expected to enhance Gallagher's benefits consulting capabilities in the region, aligning with the company's client-focused culture [3] Company Overview - Arthur J. Gallagher & Co. is a global insurance brokerage, risk management, and consulting services firm headquartered in Rolling Meadows, Illinois, operating in approximately 130 countries [3] - The company is led by J. Patrick Gallagher, Jr., who expressed enthusiasm about integrating First Capital's team into Gallagher's global operations [3]

Arthur J. Gallagher & Co. (AJG) is expected to register an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 1, after the closing bell.The Zacks Consensus Estimate for AJG’s first-quarter revenues is pegged at $3.75 billion, indicating 16.4% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $3.57 per share. The Zacks Consensus Estimate for AJG’s first-quarter earnings has moved up 3.8% in the past 60 days. The estimate suggests ...

Core Points - Arthur J. Gallagher & Co. has completed the acquisition of Woodruff Sawyer, a San Francisco-based firm [1] - The acquisition was previously disclosed, indicating a strategic move to enhance Gallagher's service offerings [1] Company Overview - Arthur J. Gallagher & Co. is a global insurance brokerage, risk management, and consulting services firm headquartered in Rolling Meadows, Illinois [2] - The company operates in approximately 130 countries through owned operations and a network of correspondent brokers and consultants [2]