Arthur J. Gallagher & Co. (AJG)

Arthur J. Gallagher & Co. reported second-quarter 2026 revenue before reimbursements of $3,955 million on 30 July, against $3,179 million a year earlier 3. Net earnings were $324 million, down from $368 million 3.

Profit fell even as revenue rose, and the release shows the costs of large acquisitions such as AssuredPartners climbing 3. Amortization of intangible assets, the gradual write-off of what was paid for acquired client books, was $218 million in the Brokerage segment against $130 million 3. Acquisition integration cost $84 million against $30 million 3.

The company's own adjusted measure, which leaves out those costs, shows net earnings of $734 million against $604 million 3. Chairman and CEO J Patrick Gallagher Jr said the Brokerage and Risk Management segments together grew revenue 24%, including organic growth of 6% 3.

Organic growth leaves out revenue from acquisitions, divested operations and currency moves, so it shows how the existing business grew 3.

On 24 August the company disclosed a change of chief accounting officer, with Kyle G Koreyva succeeding Richard C Cary effective October 1, 2026 4.

Gallagher began in 1927 as a one-person insurance agency and grew into what Business Insurance magazine ranked the world's third largest insurance broker by revenue in its June/July 2025 edition 1. It was reincorporated as a Delaware corporation in 1972 1.

Its main method of growth has been acquiring other brokers 1. The company completed approximately 780 acquisitions from January 2002 through December 2025, mostly smaller regional or local brokerages 1. Individual deals typically cost $1 million to $100 million 1.

In 2023 it closed larger deals, among them Willis Re, the reinsurance brokerage of Willis Towers Watson (a reinsurance broker helps insurers buy their own insurance), and Buck, a benefits consultant 1.

Total revenues were $10,072 million in 2023, $11,555 million in 2024 and $13,942 million in 2025 1. Net earnings attributable to the company were $970 million, $1,463 million and $1,494 million in those years 1.

The 2025 rise came mostly from acquisitions 1. Acquisitions, divested operations and other items made in 2025 and 2024 added $1,598 million of base commissions and fees, while organic growth in them was 6% 1.

The largest deal closed on 18 August 2025, when Gallagher acquired AssuredPartners, a US insurance broker, for gross consideration of $13.8 billion 1. It paid with $8.5 billion from a December 2024 share offering and $5.0 billion borrowed through senior notes 1.

AssuredPartners had over 10,900 employees 1. On 10 April 2025 Gallagher also acquired Woodruff Sawyer, a broker for middle and large clients, for consideration of $1.2 billion 1.

Cash raised before the deal closed also earned interest, which added to revenue: $363 million in 2025 1.

Brokerage

Brokerage is the core, 87% of 2025 revenue 1. Gallagher advises companies, nonprofits and public bodies on insurance and earns commissions, a percentage of the premiums that insurers receive, or fees 1.

Brokerage revenue was $12,192 million in 2025 against $9,934 million in 2024 1. Retail brokerage was 75% of the segment, wholesale 13% and reinsurance brokerage 12% 1.

Wholesale brokers help other brokers place hard-to-place coverage 1. The reinsurance arm, Gallagher Re, works from more than 77 offices across 27 countries 1. Client service reaches approximately 130 countries 1.

Risk management

Risk management settles and administers claims for organizations that insure themselves, 13% of 2025 revenue 1. Revenue was $1,749 million in 2025 against $1,605 million in 2024 1.

About 59% of its revenue came from workers' compensation claims, 34% from liability and commercial auto claims and 7% from property claims 1.

People and places

The company had approximately 72,000 employees at the end of 2025, 47% in the US and 53% elsewhere 1. J Patrick Gallagher Jr has been chief executive since 1995, and Douglas K Howell chief financial officer since 2003 1.

It owns about 360,000 square feet at its Rolling Meadows, Illinois, headquarters and generally leases other office space 1.

Rivals and current problems

Gallagher competes with many brokers worldwide, and with insurers that distribute directly, banks, consulting and accounting firms and technology companies 1.

Commissions follow premiums, and the Council of Insurance Agents and Brokers survey reported that US commercial property and casualty rates decreased 1.2% in the first quarter of 2026 12.

The IRS has investigated its micro-captive advisory business since 2013, and Gallagher says it has been advised it is not a target of a separate criminal investigation 2.

The umbrella, in words

Main units: Gallagher Re for reinsurance, Gallagher Securities for capital markets work, and the Buck benefits consultancy, joined by the 2025 purchases of Woodruff Sawyer and AssuredPartners 1.

Exhibit 21.1 lists majority-owned and consolidated subsidiaries as of January 31, 2026, including many Artex Risk Solutions entities in Bermuda, Cayman Islands, Guernsey and elsewhere 6.

It owns interests in several underwriting enterprises in the US, Bermuda, Gibraltar, Guernsey and the Isle of Man that mainly run rent-a-captive facilities for clients 1.

JPMorgan Chase & Co. reported beneficial ownership of 14,160,776 shares, 5.5% of the common stock, in a Schedule 13G amendment for the event date of June 30, 2026 7.

In its annual report the company said it believes favorable trends in client retention and new business should continue in 2026 1. It added that revenue growth could be lower if economic conditions worsen or renewal premium increases slow 1.

It said it expects retail brokerage growth from niche practice groups, middle-market accounts, cross-selling to existing clients, acquisitions and captives 1. It expects risk management growth from program business, larger clients and outsourced insurer claims work 1.

On 17 June 2026 the company held an investor meeting with an updated CFO Commentary that includes estimates for 2026 results 8.

Deals continue: 14 acquisitions closed in the first six months of 2026, with estimated annualized revenues acquired of $107 million 3. The maximum additional earnout payable on those 2026 deals is $110 million 2.

A $750 million issue of 4.60% senior notes is due in 2027 1.

Richard C Cary plans to retire in 2028 after stepping down as chief accounting officer 4. The board was cut from nine to eight members on July 23, 2026, and Ralph Nicoletti became lead independent director 5.