Michael Zaremski's questions to Arthur J. Gallagher & Co. (AJG) leadership • Q4 2024
Question
In a follow-up, Michael Zaremski of BMO Capital Markets asked if Gallagher Re's strong results are aided by a greater mix of casualty or specialty business. He also questioned if rising health inflation for employers provides an organic growth uplift for the employee benefits division.
Answer
CFO Douglas Howell confirmed their reinsurance book is likely more casualty-weighted and underweight on property compared to peers. CEO J. Gallagher added that their team excels in casualty, which is currently the area of most 'pain' for reinsurance buyers. Regarding benefits, Mr. Gallagher affirmed that rising health costs are a huge problem for employers, creating opportunities for Gallagher to leverage its leading consulting capabilities and tools, which drives growth.