Core Insights - The company reported a solid third quarter with 5% organic growth and an adjusted EPS of $3.07, reflecting an 11% year-over-year increase [3][14][29] - The Health, Wealth, and Career segment achieved 4% revenue growth, with 5% growth when excluding certain activities, while the Risk and Broking segment saw a 6% increase in revenue [15][22][23] - The company continues to focus on strategic investments in technology and talent to drive efficiency and growth, particularly in the face of a challenging macroeconomic environment [6][32][50] Financial Performance - Adjusted operating margin expanded by 230 basis points year-over-year to 20.4%, with significant contributions from both segments [14][29] - Free cash flow for the nine months ending September 30, 2025, was $838 million, an increase of $114 million from the previous year, driven by operating margin expansion [31] - The company returned $690 million to shareholders through share repurchases and dividends during the quarter [32] Segment Analysis - Health, Wealth, and Career segment reported a 7% growth in health services, driven by international demand and strong performance in North America [16][18] - Wealth segment grew by 5%, primarily due to strong retirement work in Great Britain and North America, with expectations for low single-digit growth for the year [19][63] - Risk and Broking segment achieved 6% organic growth, with a focus on specialization strategies contributing to new business wins [22][23][24] Market Conditions - The company is navigating headwinds from declining rates in certain commercial insurance markets, but remains resilient due to its diversified revenue base [1][2] - Concerns about global trade, inflation, and geopolitical conditions present both opportunities and challenges for clients [2] - The pricing environment in the insurance market is softening, particularly in property insurance, but the company expects to maintain mid to high single-digit growth in Risk and Broking [24][41][52] Strategic Initiatives - Investments in digital tools, AI, and automation are enhancing operational efficiency and driving growth in the Risk and Broking segment [6][28] - The launch of new technology solutions, such as RADAR 5 and Gemini, aims to improve client service and operational capabilities [7][10] - The company is committed to delivering 100 basis points of average annual adjusted operating margin expansion over the next three years [28][36]

Core Insights - Arthur J. Gallagher & Co. reported weaker-than-expected earnings for Q3, with adjusted earnings of $2.32 per share, missing market estimates of $2.54 per share, and quarterly sales of $2.923 billion, below expectations of $3.454 billion [1] Financial Performance - The company achieved 20% total revenue growth in its combined brokerage and risk management segments, marking the 19th consecutive quarter of double-digit top-line growth [2] - Organic revenue growth was reported at 4.8%, with incremental revenue from acquisitions exceeding $450 million [2] - Net earnings margin stood at 13.8%, while adjusted EBITDAC margin was 32.1%, with adjusted EBITDAC growing by 22% [2] Analyst Ratings and Price Targets - Keefe, Bruyette & Woods analyst Meyer Shields maintained a Market Perform rating and reduced the price target from $315 to $275 [5] - Evercore ISI Group analyst David Motemaden kept an Outperform rating but lowered the price target from $370 to $353 [5]

Financial Performance - Aon achieved 7% organic revenue growth in Q3 2025, consistent with Q3 2024[8, 9] - Adjusted operating margin expanded by 170 basis points to 26.3%[8, 9, 15] - Adjusted earnings per share (EPS) grew by 12%[8, 9] - Free cash flow increased by 13% to $1.079 billion in Q3 2025[8, 9] Segment Performance - Commercial Risk Solutions and Reinsurance Solutions both experienced organic revenue growth of 7% and 8% respectively[10, 24] - Health Solutions saw organic revenue growth of 6%, while Wealth Solutions grew by 5%[10, 24] Capital Allocation - The company remains disciplined in capital allocation, balancing strategic investments with capital return to shareholders[8] - Capital return to shareholders included $161 million in dividends and $411 million in share repurchases in Q3 2025[19] Guidance and Outlook - Aon is on track to achieve its full-year 2025 financial commitments and expects to enter 2026 with strong momentum[8] - The company anticipates mid-single-digit or greater organic revenue growth for the full year 2025[12, 20]

Core Insights - Arthur J. Gallagher & Co. reported total revenue of $3.32 billion for Q3 2025, a 20% increase from $2.8 billion in Q3 2024, marking the 19th consecutive quarter of double-digit growth [1][7] Revenue Breakdown - The brokerage unit generated $2.9 billion in Q3 2025, up from $2.4 billion in Q3 2024, while the risk management segment contributed $402.1 million compared to $369.7 million in the same quarter last year [2] - For the first nine months of 2025, total revenue reached $10.1 billion, an increase from $8.72 billion in 9M 2024, with the brokerage arm reporting $9.02 billion and the risk management segment $1.2 billion [3] Earnings Performance - Net earnings for Q3 2025 decreased to $1.04 billion from $1.39 billion in Q3 2024, with the brokerage arm contributing $1.57 billion and the risk management arm $19 million [4] - For 9M 2025, net earnings also dipped to $5.16 billion from $5.4 billion in 9M 2024, with the brokerage arm at $6.65 billion and the risk management arm at $51 million [5] Operating Expenses and Acquisitions - Operating expenses for Q3 2025 were $433.6 million, up from $342 million in Q3 2024, and for 9M 2025, they totaled $1.14 billion compared to $1.02 billion in 9M 2024 [5] - The company completed six acquisitions in Q3 2025, with annualized revenues of $3.03 billion, compared to three acquisitions generating $32.7 million in Q3 2024 [6] Strategic Outlook - The CEO highlighted a strong third quarter with 20% revenue growth, 4.8% organic growth, and over $450 million in incremental revenue from acquisitions, emphasizing a robust client-centric culture [7]

Core Insights - Aon plc reported a total revenue of $3.997 billion for Q3 2025, reflecting a 7% increase compared to Q3 2024, driven by 7% organic revenue growth and a favorable 1% impact from foreign currency translation [2][3][10] - The company achieved a diluted EPS of $2.11, a 34% increase from $1.57 in the prior year period, with adjusted EPS rising 12% to $3.05 [2][23][10] - Aon's strong capital position and cash generation support its capital allocation model, balancing high-return investments for future growth and capital returns to shareholders [2][10] Financial Performance - Total revenue for the nine months ended September 30, 2025, was $12.881 billion, up 12% from $11.551 billion in the same period of 2024 [2][10] - Operating income increased by 31% to $816 million in Q3 2025, with an operating margin of 20.4%, up from 16.7% in Q3 2024 [2][20] - Adjusted operating income rose 15% to $1.051 billion, with an adjusted operating margin of 26.3%, compared to 24.6% in the prior year [2][20] Segment Performance - Risk Capital revenue increased by 7% to $2.525 billion, with strong growth in North America and EMEA, particularly in core P&C and M&A services [3][12] - Human Capital revenue grew by 8% to $1.475 billion, driven by health and wealth solutions [3][14] - The company reported a 7% organic revenue growth across its segments, with notable contributions from both Risk Capital and Human Capital [3][10] Cash Flow and Expenses - Cash provided by operations for the first nine months of 2025 was $2.084 billion, a 14% increase from $1.835 billion in the prior year [8][39] - Free cash flow for the same period increased by 13% to $1.895 billion, reflecting strong operational cash flows despite a rise in capital expenditures [9][39] - Total operating expenses for Q3 2025 rose by 3% to $3.181 billion, primarily due to increased compensation and benefits expenses associated with organic revenue growth [4][15]

Core Insights - Arthur J. Gallagher (AJG) reported $3.33 billion in revenue for Q3 2025, a year-over-year increase of 21.5%, with EPS of $2.32 compared to $2.26 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 3.43%, while the EPS also missed the consensus estimate by 7.57% [1] Financial Performance Metrics - The company’s shares have returned -14.3% over the past month, contrasting with the Zacks S&P 500 composite's +3.6% change [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the broader market [3] Revenue Breakdown - Total Company Fees reached $1.06 billion, exceeding the four-analyst average estimate of $1.04 billion, representing an 11.9% year-over-year change [4] - Interest income, premium finance revenues, and other income totaled $167.1 million, below the $215.97 million average estimate, but showing a 23.5% year-over-year increase [4] - Risk Management Segment revenues before reimbursements were $402.1 million, slightly above the $397.89 million average estimate, reflecting an 8.8% year-over-year increase [4] - Total Company Commissions were $1.91 billion, below the three-analyst average estimate of $1.96 billion, with a year-over-year change of 24.1% [4] - Adjusted Brokerage revenues were $2.93 billion, slightly below the three-analyst average estimate of $2.96 billion, with a year-over-year change of 23.5% [4] Expense Ratios - The Brokerage compensation expense ratio was reported at 56.4%, higher than the two-analyst average estimate of 54.5% [4] - The Risk Management Segment's operating expense ratio was 19%, above the estimated 17.9% [4] - The Risk Management Segment's compensation expense ratio was 60.6%, compared to the average estimate of 58.5% [4] - The Brokerage operating expense ratio was 14.8%, exceeding the two-analyst average estimate of 13.8% [4]

Financial Performance - The company reported a revenue growth of 20% for the third quarter of 2025, marking the 19th consecutive quarter of double-digit growth [4][5] - Organic growth was 4.8%, with adjusted EBITDA growing by 22% and adjusted EBITDA margins expanding by 26 basis points [5][6] - GAAP EPS was $1.76, while adjusted EPS was $2.87, which would have been $0.22 higher if adjusted for intra-quarter revenue seasonality [5][6] Segment Performance - The brokerage segment saw reported revenue growth of 22% and organic growth of 4.5%, with adjusted EBITDA margin remaining flat year-over-year at 33.5% [6][19] - Employee benefits experienced around 1% organic growth, primarily due to lower-than-expected large life cases [7] - The risk management segment, Gallagher Bassett, reported an 8% revenue growth, including 6.7% organic growth, with an adjusted EBITDA margin of 21.8% [11][21] Market Dynamics - Global insurance renewal premium changes showed property down 5% and casualty lines up 6%, indicating a bifurcated market where larger clients are seeing premium decreases while smaller clients are experiencing increases [8][9] - The reinsurance market remains healthy with adequate capacity, and the company anticipates stable conditions for January 1 renewals [9][10] - The company noted solid demand for employee benefits due to the resilient U.S. labor market and rising health insurance costs [10] Strategic Direction - The company is focused on a two-pronged revenue growth strategy involving organic growth and mergers & acquisitions, with a strong emphasis on integrating AssuredPartners [4][12] - The management expressed confidence in the company's competitive positioning, leveraging proprietary data and analytics to enhance service offerings [11][12] - The company completed five new mergers, contributing approximately $40 million in estimated annualized revenue, bringing the year-to-date total to over $3.4 billion [13] Management Commentary - Management remains optimistic about the operating environment, citing solid client business activity and no signs of an economic downturn [10][11] - The company expects fourth quarter organic growth around 5%, leading to a full-year organic growth of over 6% [11][19] - Management highlighted the importance of maintaining a strong company culture to drive success and integration post-acquisition [14] Other Important Information - The company anticipates annualized run-rate synergies of $160 million by the end of 2026 and $260 million-$280 million by early 2028 from the AssuredPartners acquisition [24] - The company has approximately $10 billion available for future M&A funding, indicating a strong position for growth [25] Q&A Session Summary Question: Clarification on AssuredPartners' new business and synergies - Management clarified that revenue synergies from AssuredPartners will be credited to their P&L, while broader base contingent commissions will impact legacy Gallagher's organic growth [29] Question: Outlook for organic growth in 2026 - Management indicated that 2026 could resemble 2025, with strong performance expected in reinsurance and property & casualty businesses [30] Question: M&A pipeline post-AssuredPartners acquisition - Management stated that the M&A pipeline from AssuredPartners has not yet been fully integrated but is expected to present opportunities [31][32] Question: Organic growth expectations in a shallow pricing environment - Management acknowledged that a 4%-6% organic growth rate is achievable, with potential for upper-end performance due to strong wholesale and reinsurance businesses [41][42] Question: Property market outlook - Management expressed a stable outlook for the property market, with expectations of continued pressure but no dramatic decreases anticipated [82][84]

Financial Performance - The company achieved a revenue growth of 20% in Q3 2025, marking the 19th consecutive quarter of double-digit growth [4][5] - Organic growth was reported at 4.8%, with adjusted EBITDA growing by 22% and adjusted EBITDA margins expanding by 26 basis points [5][11] - GAAP EPS was $1.76, while adjusted EPS was $2.87, which would have been $0.22 higher if adjusted for intra-quarter revenue seasonality [5][11] Brokerage Segment Performance - The brokerage segment reported a revenue growth of 22%, with organic growth at 4.5% [6][11] - Within retail operations, property and casualty organic growth was 5%, with U.S. growth exceeding 7% [6][7] - Employee benefits showed around 1% organic growth, while wholesale and specialty businesses delivered 5% organic growth [7][11] Risk Management Segment Performance - The risk management segment, Gallagher Bassett, saw an 8% revenue growth, including 6.7% organic growth [11][12] - Adjusted EBITDA margin for this segment was reported at 21.8%, slightly better than previous expectations [12][21] Market Dynamics - The global insurance renewal premium changes showed property down 5% and casualty lines up 6% overall, indicating a mixed pricing environment [8][9] - The company noted a bifurcation in renewal premium changes by client size, with smaller clients seeing a 3% increase while larger clients experienced a 1% decrease [9][10] - The reinsurance market remains healthy with adequate capacity, and the company anticipates stable conditions for January 1 renewals [10][11] Strategic Direction and M&A Activity - The company is focused on a two-pronged revenue growth strategy involving organic growth and mergers & acquisitions (M&A) [4][12] - Since acquiring AssuredPartners, the company has completed five new mergers, contributing approximately $40 million in estimated annualized revenue [12][13] - The company has a pipeline of about 35 term sheets signed or being prepared, representing around $400 million of annualized revenue [13][25] Management Commentary on Future Outlook - Management expressed confidence in the company's positioning for growth despite economic uncertainties, with expectations of around 5% organic growth in Q4 [10][11] - The company anticipates full-year margins around 21% for Gallagher Bassett, indicating a strong performance outlook [12][21] - Management highlighted the importance of maintaining a client-centric culture and leveraging proprietary data and analytics for competitive advantage [11][14] Q&A Session Summary Question: Regarding AssuredPartners and new business - Management clarified that revenue synergies from AssuredPartners will be credited to their P&Ls, while broader base contingent commissions impacting legacy Gallagher will be included in organic growth [29] Question: Organic growth outlook for 2026 - Management indicated that 2026 could resemble 2025, with strong performance expected in reinsurance and property & casualty businesses [30] Question: M&A pipeline post-AssuredPartners acquisition - Management noted that it is still early to assess the full impact of AssuredPartners on the M&A pipeline, but there is optimism for future opportunities [31][32] Question: Market conditions and pricing dynamics - Management acknowledged that while casualty pricing remains stable, there is a mixed environment with property pricing showing some relief [60][62] Question: Employee benefits and new business acquisition - Management expects strong performance in employee benefits due to rising medical costs and a competitive labor market, which will drive new business opportunities [72][74]

Financial Performance - The company achieved a revenue growth of 20% in Q3 2025, marking the 19th consecutive quarter of double-digit growth [3][4] - Adjusted EBITDA grew by 22%, with adjusted EBITDA margins expanding by 26 basis points [4] - GAAP EPS was reported at $1.76, while adjusted EPS was $2.87, which would have been $0.22 higher if adjusted for intra-quarter revenue seasonality [4] Business Segment Performance - The brokerage segment reported a revenue growth of 22%, with organic growth at 4.5% [5] - Employee benefits experienced around 1% organic growth, impacted by lower-than-expected large life cases [6] - The risk management segment, Gallagher Bassett, saw an 8% revenue growth, with organic growth at 6.7% [11][20] Market Dynamics - Global insurance renewal premium changes showed property down 5% and casualty lines up 6% overall, indicating a mixed pricing environment [8][9] - The company noted a bifurcation in renewal premium changes by client size, with smaller clients seeing a 3% increase while larger clients experienced a 1% decrease [9] - The reinsurance market remains healthy with adequate capacity to meet expected demand [10] Strategic Direction and Competitive Landscape - The company is focused on a two-pronged revenue growth strategy, emphasizing both organic growth and mergers & acquisitions [3] - The integration of AssuredPartners is seen as a significant opportunity for value creation, with a strong emphasis on collaboration and shared resources [12][13] - The company aims to leverage its extensive data and analytics capabilities to enhance competitive positioning [11] Management Commentary on Economic Environment - Management expressed confidence in the company's positioning to grow despite market conditions, citing solid client business activity and positive revenue indications [10][11] - There are no signs of an economic downturn, and the company anticipates continued organic growth in the brokerage segment [11][20] - Management highlighted the importance of addressing rising health insurance costs for clients as a key focus area [10] Other Important Information - The company completed five new mergers in the year, contributing approximately $40 million in estimated annualized revenue [13] - The pipeline for future M&A includes about 35 term sheets signed or being prepared, representing around $400 million in annualized revenue [13] Q&A Session Summary Question: Regarding AssuredPartners and new business - Revenue synergies from AssuredPartners will be credited to their P&L, while broader base contingent commissions may impact legacy Gallagher's organic growth [25] Question: Organic growth outlook for 2026 - Management is comfortable that 2026 could resemble 2025, with strong performance expected in reinsurance and P&C businesses [26] Question: M&A pipeline post-AssuredPartners acquisition - The M&A pipeline from AssuredPartners has not yet been integrated, but there is optimism about future opportunities [27][28] Question: Pricing dynamics in the market - Management noted that while casualty pricing increases are stabilizing, property pricing is experiencing downward pressure [39][45] Question: Employee benefits outlook - The fourth quarter is expected to be strong for employee benefits, driven by talent retention strategies and managing rising health insurance costs [47][48]

Financial Performance & Estimates - The brokerage segment's foreign currency impact on revenues is estimated to be approximately $52 million for full year 2025[11] - The brokerage segment's amortization of intangibles is estimated at $828 million pretax for full year 2025[11] - The risk management segment's EBITDAC margin, as adjusted, is expected to be approximately 21% for full year 2025[11] - Net after-tax cash flow from clean energy investments is estimated to be greater than $180 million in 2025 and greater than $200 million in 2026 and beyond[22] AssuredPartners Acquisition - AssuredPartners' estimated revenue for the fourth quarter of 2025 is $710 million[36] - AssuredPartners' estimated adjusted EBITDAC margin is 33% for FY 2026[36] - Gallagher expects to achieve approximately $260 to $280 million of annual run-rate synergies from the AssuredPartners acquisition by early 2028[37] Acquisition Rollover Revenues (Excluding AssuredPartners) - Brokerage segment acquisition rollover revenues are estimated to be $79 million for the fourth quarter of 2025[29] - Brokerage segment acquisition rollover revenues are estimated to be $99 million for the first quarter of 2026[29] - Risk management segment expects approximately $16 million of rollover revenue (before reimbursements) during fourth quarter 2025[30] Corporate Segment - Adjusted Full Year 2025 Net Earnings Attributable to Controlling Interests is estimated to be $(573.7) million[18]