Arthur J. Gallagher & Co. Announces Second Quarter 2025 Financial Results

Core Insights - Arthur J. Gallagher & Co. reported strong financial results for Q2 2025, with a 16% revenue growth driven by core brokerage and risk management segments, and organic revenue growth of 5.4% [4][5] - The company completed 9 new mergers in the quarter, contributing approximately $290 million in estimated annualized revenue, and is on track to close the AssuredPartners acquisition in Q3 2025 [5][10] - The global property and casualty insurance market remains competitive, with property premiums declining by 7% and casualty premiums increasing by 8% [6] Financial Performance - Total revenues for Q2 2025 were reported at $3,177.9 million, compared to $2,736.0 million in Q2 2024, reflecting a significant increase [3] - Net earnings for Q2 2025 were $508.4 million, up from $332.8 million in Q2 2024, resulting in a diluted earnings per share of $1.95 compared to $1.48 [2][3] - Adjusted EBITDAC for Q2 2025 was $1,012.9 million, a 26% year-over-year growth, marking the 21st consecutive quarter of double-digit growth [4][14] Segment Analysis - The Brokerage segment reported revenues of $2,785.6 million in Q2 2025, up from $2,376.3 million in Q2 2024, with an adjusted EBITDAC margin of 36.4% [2][3] - The Risk Management segment generated revenues of $391.9 million in Q2 2025, compared to $358.6 million in Q2 2024, with an adjusted EBITDAC margin of 20.7% [3][17] - The Corporate segment reported a net loss of $184.8 million in Q2 2025, an increase from a loss of $95.2 million in Q2 2024, primarily due to transaction-related costs [3][22] Acquisition Activity - The company closed 9 acquisitions in Q2 2025, with a total estimated annualized revenue of $290 million, and is progressing towards the acquisition of AssuredPartners for approximately $13.45 billion [5][10] - The financing for the AssuredPartners acquisition included $8.5 billion raised from a follow-on common stock offering and $5.0 billion from senior notes issuance [10] Market Conditions - The property and casualty insurance market is characterized by rational competition, with notable differences in premium changes between property and casualty lines [6] - Gallagher Bassett's daily revenue indications and claim counts suggest stable customer business activity, indicating no significant changes in market dynamics [6]