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Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2024 Financial Results
AJGArthur J. Gallagher & (AJG) Prnewswire·2025-01-30 21:15

Core Insights - Arthur J. Gallagher & Co. reported strong financial results for Q4 2024, achieving 2,680.0millionintotalrevenues,a12.02,680.0 million in total revenues, a 12.0% increase from 2,393.1 million in Q4 2023 [2][4][40] - The company experienced a net earnings margin of 9.6% for Q4 2024, compared to a net loss margin of (1.6%) in Q4 2023, indicating a significant turnaround in profitability [4][40] - The company completed 20 mergers in Q4 2024, contributing to a total of 48 mergers for the year, with an estimated annualized revenue of 387millionfromtheseacquisitions[4][9]FinancialPerformance−TotalrevenuesfortheyearendedDecember31,2024,reached387 million from these acquisitions [4][9] Financial Performance - Total revenues for the year ended December 31, 2024, reached 11,400.6 million, up from 9,926.5millionin2023,reflectingagrowthof14.99,926.5 million in 2023, reflecting a growth of 14.9% [5][6] - Adjusted EBITDAC for Q4 2024 was 760.3 million, a 17.0% increase from 641.4millioninQ42023[4][13]−ThedilutednetearningspershareforQ42024was641.4 million in Q4 2023 [4][13] - The diluted net earnings per share for Q4 2024 was 1.12, compared to a loss of (0.15)pershareinQ42023[4][40]SegmentPerformance−TheBrokeragesegmentreportedrevenuesof(0.15) per share in Q4 2023 [4][40] Segment Performance - The Brokerage segment reported revenues of 2,296.2 million in Q4 2024, up from 2,051.5millioninQ42023,withanetearningsof2,051.5 million in Q4 2023, with a net earnings of 317.3 million compared to 24.8millioninthepreviousyear[2][40]−TheRiskManagementsegmentgeneratedrevenuesof24.8 million in the previous year [2][40] - The Risk Management segment generated revenues of 369.4 million in Q4 2024, an increase from 340.4millioninQ42023,withnetearningsof340.4 million in Q4 2023, with net earnings of 42.8 million [2][41] - The Corporate segment reported a net loss of (101.9)millioninQ42024,animprovementfromalossof(101.9) million in Q4 2024, an improvement from a loss of (106.7) million in Q4 2023 [4][42] Acquisition Activity - The acquisition of AssuredPartners for approximately 13.45billionwasannounced,expectedtobefundedthroughacombinationofcashraisedfromastockofferingandseniornotesissuance[9][20]−Gallagherclosed19acquisitionsinQ42024,withestimatedannualizedrevenuesof13.45 billion was announced, expected to be funded through a combination of cash raised from a stock offering and senior notes issuance [9][20] - Gallagher closed 19 acquisitions in Q4 2024, with estimated annualized revenues of 188.7 million from these deals [8][9] Market Trends - The global property and casualty insurance market continues to grow, with primary renewal premium increases above 5% in January 2025, driven by increases in casualty classes [4][9] - The company noted that January 1, 2025, reinsurance renewals were orderly, favoring property and specialty reinsurance buyers [4][9]