Arthur J. Gallagher & Co. (AJG) is a global insurance brokerage, risk management, and consulting services company . The company operates primarily through two main segments: brokerage and risk management, offering services such as insurance and reinsurance placements, risk management, and employer-sponsored benefit programs . AJG's product lines include traditional group insurance coverages like medical, dental, vision, disability, and life insurance, as well as retirement services, compensation consulting, executive life, and HR consulting .
- Brokerage - Provides insurance and reinsurance brokerage services to a wide range of clients, including commercial, nonprofit, and public sector entities, focusing on insurance placements, risk management, and employer-sponsored benefit programs .
- Risk Management - Led by Gallagher Bassett, focuses on third-party claims settlement and administration, with significant revenue from workers' compensation claims, liability claims, and specialty product offerings such as medical malpractice and cyber liability .
- Traditional Group Insurance Coverages - Offers medical, dental, vision, disability, and life insurance, representing a substantial portion of the company's annual revenue .
- Retirement Services - Provides consulting and management services for retirement plans and related financial products .
- Compensation Consulting - Offers expertise in designing and managing compensation programs for organizations .
- Executive Life - Provides life insurance solutions tailored for executives and high-net-worth individuals .
- HR Consulting - Delivers human resources consulting services, including strategy development and implementation .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
J. Patrick Gallagher, Jr. ExecutiveBoard | Chairman of the Board and Chief Executive Officer | None | Joined AJG in 1974; became CEO in 1995 and Chairman in 2006. Has held various leadership roles, including COO and President. | View Report → |
Christopher E. Mead Executive | Corporate Vice President and Chief Marketing Officer | None | Chief Marketing Officer since 2017. | |
Douglas K. Howell Executive | Vice President and Chief Financial Officer | None | Oversees AJG's financial operations. Has certified compliance for key financial filings, including the 2023 10-K and 2024 10-Qs. | |
Joel D. Cavaness Executive | Chairman, Americas Specialty (Wholesale Brokerage) | None | Joined AJG in 2000. Previously served as President of Wholesale Brokerage Operations (1997–2024). | |
Mark H. Bloom Executive | Corporate Vice President and Global Chief Information Officer | None | Joined AJG in 2022. Previously served as Global CIO at Aegon N.V. (2016–2021). | |
Scott R. Hudson Executive | Corporate Vice President and President of Risk Management Operations (Gallagher Bassett) | None | President of Gallagher Bassett since 2010. Oversees AJG's Risk Management segment. | |
Susan E. Pietrucha Executive | Corporate Vice President and Chief Human Resource Officer | None | Joined AJG in 2007. Oversees human resources and talent management. | |
Thomas J. Gallagher Executive | President | None | Appointed President in 2024. Previously served as President of Global Property/Casualty Brokerage Operations (2017–2024) and Chairman of International Brokerage Operations (2010–2016). | |
Vishal Jain Executive | Corporate Vice President and Chief Service Officer | None | Joined AJG in 2016. Oversees service operations. | |
Walter D. Bay Executive | Vice President, General Counsel, and Secretary | None | Joined AJG in 2007. Oversees legal strategy and corporate governance. | |
William F. Ziebell Executive | President of Employee Benefit and Consulting Brokerage Operations | None | Joined AJG in 2004. Became President of Employee Benefit and Consulting Brokerage Operations in 2017. | |
Chris Miskel Board | Director | President and CEO of Versiti, Inc.; Trustee at Butler University; Director at Medical College of Wisconsin | Director at AJG since 2020. Extensive experience in healthcare and pharmaceutical industries. | |
David Johnson Board | Independent Lead Director | Board Member at OC Flavors, Inc. | Director at AJG since 2003. Former CEO of Aryzta AG North America and President of Barry Callebaut Americas. | |
John Coldman Board | Director | None | Director at AJG since 2014. Extensive experience in the Lloyd's and London insurance markets. | |
Norman Rosenthal Board | Director | President of Norman L. Rosenthal & Associates, Inc.; Board Member at Plymouth Rock Company | Director at AJG since 2008. Extensive experience in property and casualty insurance and private equity. | |
Ralph Nicoletti Board | Director | Chair of Audit Committees at Cooper’s Hawk Winery & Restaurants and GPA Global | Director at AJG since 2016. Former CFO at several major corporations, including Newell Brands and Tiffany & Co. | |
Richard Harries Board | Director | None | Director at AJG since 2024. Former CEO of Atrium Underwriters Limited. Extensive experience in insurance and technology. | |
Sherry Barrat Board | Director | Director at NextEra Energy, Inc.; Independent Trustee at Prudential Insurance Mutual Funds | Director at AJG since 2013. Chair of the Compensation Committee. Extensive experience in financial services and governance. | |
Teresa Clarke Board | Director | Chair and CEO of Africa.com LLC; Director at American Tower Corporation; Trustee at Prudential Insurance Mutual Funds | Director at AJG since 2021. Extensive experience in investment banking and digital media. | |
William Bax Board | Director | None (retiring from AJG Board in 2024) | Director at AJG since 2006. Former Managing Partner at PwC Chicago. |
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With the rising multiples in middle-market acquisitions, particularly for deals exceeding $15 million in revenue, how does Gallagher plan to remain disciplined and avoid overpaying for acquisitions in a competitive market where valuations are increasing?
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Despite having a robust pipeline of over 100 potential mergers representing approximately $1.5 billion in annualized revenue, you've noted a slowdown in deal closures during the first three quarters; what specific strategies are you implementing to ensure these potential deals materialize, especially given external factors like the presidential election year?
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There has been a significant increase in workforce and lease termination charges compared to the previous year, which you attributed to workforce optimization and offshoring efforts; can you provide more insight into the scale of these changes and how they are impacting your operational efficiency and employee engagement?
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Given that contingent commissions can be affected by casualty market pressures and recent storms, potentially impacting earnings by a few million dollars, how are you addressing the potential volatility in contingent revenues to ensure stable financial performance?
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You have around $700 million in annualized revenue from term sheets that are signed or being prepared; historically, what percentage of such deals have successfully closed, and how confident are you in converting this pipeline into actual growth given that some deals can take years to finalize?
Research analysts who have asked questions during Arthur J. Gallagher & earnings calls.
David Motemaden
Evercore ISI
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Mark Hughes
Truist Securities
5 questions for AJG
Andrew Andersen
Jefferies
3 questions for AJG
Andrew Kligerman
TD Cowen
3 questions for AJG
Michael Zaremski
BMO Capital Markets
3 questions for AJG
C. Gregory Peters
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2 questions for AJG
Charlie Lederer
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Jing Li
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Meyer Shields
Keefe, Bruyette & Woods
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Robert Cox
The Goldman Sachs Group, Inc.
2 questions for AJG
Alex Scott
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1 question for AJG
Cave Montazeri
Deutsche Bank
1 question for AJG
Charles Peters
Raymond James
1 question for AJG
Dean Criscitiello
Keefe, Bruyette & Woods
1 question for AJG
Grace Carter
BofA Securities
1 question for AJG
Gregory Peters
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1 question for AJG
Greg Peters
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Taylor Scott
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Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Agilis Partners LLC | 2025 | Acquired on February 18, 2025, this investment and retirement plan consulting firm will enhance Gallagher’s retirement plan and investment consulting capabilities, with terms not disclosed and the existing team remaining in place. |
Dominick Falcone Agency, Inc. and Falcone Associates, Inc. | 2025 | Acquired on February 3, 2025, these Syracuse‑based companies—focusing on property/casualty insurance and employee benefits—support Gallagher’s strategic expansion in central New York, with undisclosed terms and existing leadership maintained. |
W K Webster & Co Ltd | 2025 | Acquired in 2025, this London‑headquartered marine and transit claims management firm expands Gallagher Bassett’s global service footprint, with the deal’s financial terms not disclosed. |
Wealth Management Partners Pty Ltd (WMP) | 2025 | Announced on January 10, 2025, this Perth‑based firm specializes in retirement plan risk management for both individuals and corporates, a move aimed at enhancing financial wellbeing consulting in Australia; deal terms were not disclosed. |
Encore Insurance Services Inc. (Encore Group) | 2025 | Acquired on January 6, 2025, this Waterloo‑based retail insurance brokerage serving commercial clients (especially in manufacturing, construction, and finance) complements Gallagher’s Canadian retail capabilities, with undisclosed terms. |
Sheila J. Butler & Company (SJB) | 2024 | Acquired on December 11, 2024, this employee benefits brokerage in Georgia continues operating from its current location under existing leadership, with transaction terms not disclosed. |
Dolphin TopCo, Inc. | 2024 | Acquired on December 7, 2024, for $13.45 billion in cash (funded through a mix of a public stock offering, unsecured senior notes, and credit facilities), this holding company of AssuredPartners expands Gallagher’s global insurance brokerage services, subject to customary closing conditions and termination rights. |
Hann Insurance Brokers Pty Ltd. | 2024 | Acquired on December 2, 2024, this Lambton, New South Wales–based firm specializes in property/casualty insurance for the transport sector and augments Gallagher’s retail brokerage in Australia, with terms not disclosed. |
Shepard Insurance Group | 2024 | Acquired on November 26, 2024, this Old Greenwich–based retail insurance broker, serving high‑net‑worth clients in the Northeast and Florida, operates under unchanged leadership with undisclosed deal terms. |
Scout Benefits Group LLC | 2024 | Acquired on November 4, 2024, this Oklahoma City–based employee benefits consulting firm, focused on health plan strategies, strengthens Gallagher’s regional capabilities, with financial terms not disclosed. |
Redington Ltd. | 2024 | Acquired on October 25, 2024, this London‑based investment consulting firm—providing investment, research, and technology services—enhances Gallagher’s consulting expertise, although the terms of the deal were not disclosed. |
Via Financial Group Pty Ltd. | 2024 | Announced on October 25, 2024, this Sydney‑based firm offers financial planning, wealth management, and life risk advisory services that complement Gallagher’s benefits consulting operations in Australia, with undisclosed transaction terms. |
OperationsInc, LLC | 2024 | Effective June 1, 2024, this Norwalk, Connecticut–based HR consulting firm was acquired for a total recorded price of $66.4 million (including cash, escrow, and an earnout), expanding Gallagher’s HR, payroll, and talent acquisition service offerings with detailed asset and liability assumptions. |
Cadence Insurance, Inc. | 2023 | Acquired in 2023 for approximately $749 million (net of a significant tax benefit), this multifaceted insurance business enhances commercial property/casualty, employee benefits, and personal lines offerings, with integration costs projected around $70 million to support synergy. |
Eastern Insurance Group, LLC | 2023 | Acquired for approximately $510 million (net of seller‑funded expenses) via a definitive agreement signed on September 19, 2023, this Northeastern comprehensive provider of commercial insurance and employee benefits services aims to unlock value through improved liquidity and operational integration, subject to regulatory and retention conditions. |
Insurance by Ken Brown (IKB) | 2023 | Effective May 1, 2023, this acquisition for $72.2 million (comprising common shares, cash, escrow, and earnout components) brought in key assets like goodwill and expiration lists, supporting Gallagher’s strategy to expand its retail insurance brokerage market. |
RHP General Agency (RHP) | 2023 | Acquired effective May 1, 2023, for a total recorded price of $75.3 million (including common shares, cash, escrow, and an earnout), this acquisition provided valuable assets such as goodwill and expiration lists to bolster Gallagher’s presence in both retail and wholesale brokerage markets. |
BCHR Holdings, L.P. dba Buck (Buck) | 2023 | Completed on April 3, 2023, for a recorded price of $600.8 million (with a gross consideration of approximately $660 million adjusted for seller‑funded expenses), this acquisition expands Gallagher’s retirement, HR, and employee benefits consulting services, funded through free cash flow and unsecured senior notes while incurring specified integration costs. |
Boley-Featherston-Huffman & Deal Co. (BFH) | 2023 | Acquired effective April 1, 2023, for $67.9 million (including common shares, cash, escrow, and earnout provisions), this firm’s acquisition—with assets like goodwill and expiration lists—supports Gallagher’s expansion in the retail and wholesale insurance brokerage space. |
Tay River Holdings Limited (TRH) | 2023 | Acquired effective April 1, 2023, for a total recorded price of $79.4 million (comprising cash, liabilities, escrow, and earnout components), this acquisition brings in significant goodwill and other assets to facilitate geographic expansion and increased service volumes in diverse insurance markets. |
First Ireland Risk Management Ltd. (FIR) | 2023 | Acquired effective January 1, 2023, for $97.6 million (including cash, escrow, and an earnout), this Ireland‑based firm’s valuable assets—such as significant goodwill and expiration lists—expand Gallagher’s commercial middle market and personal lines offerings, bolstering its international presence. |
M&T Insurance Agency, Inc. | 2022 | Acquired on October 31, 2022, for approximately $170 million in cash with a potential $22.5 million earnout, this acquisition established Gallagher as the preferred insurance broking partner for M&T Bank, reinforcing its presence in Buffalo, New York. |
Innovu Group Holding Company Limited (IGH) | 2022 | Acquired on June 1, 2022, for $85.4 million in cash, this deal added diversified assets—including goodwill, expiration lists, and fixed assets—to enhance Gallagher’s geographic reach and capabilities in the insurance and reinsurance brokerage markets. |
Devitt Insurance Services Ltd (DIS) | 2022 | Effective February 1, 2022, this transaction for a total recorded price of $90.8 million (comprising cash, an escrow deposit, and an earnout) brought substantial goodwill and related assets into Gallagher’s portfolio, supporting its expansion in both retail and wholesale insurance services. |
Recent press releases and 8-K filings for AJG.
- Gallagher closed the AssuredPartners acquisition in mid-August and now expects $160 m annual synergies by late 2026, rising to $260–280 m by early 2028.
- The firm forecasts ~6.5% full-year 2025 organic growth, including ~5% Q3 brokerage and ~7% Q3 risk management, with ~70 bps of underlying margin expansion for the year.
- Since 2020, Gallagher has acquired ~$6 bn of pro forma revenue; in 2025 it completed 35 deals adding $3.5 bn, and holds a pipeline of ~40 potential mergers (~$0.5 bn).
- AssuredPartners now contributes >$3 bn in annualized revenue at an ~10× EBITDA multiple, with EPS accretion of 12–14% relative to Gallagher’s trailing non-GAAP EPS.
- The company ends August with ~$700 m cash, $680 m in tax credit carryforwards, and capacity to fund $7 bn of M&A through end-2026.
- Gallagher’s CFO commentary contains forward-looking statements, detailing use of EBITDAC Margin and Adjusted Net Earnings as key non-GAAP performance measures for comparability.
- For full-year 2025, the company forecasts organic EBITDAC margin > 4%, pretax amortization of $691 million, depreciation of $143 million, net earnout payables change of $44 million, and an adjusted tax rate of 24.5–26.5%.
- Synergies from the Assured Partners acquisition (closed August 18, 2025) are expected to deliver revenue uplifts and cost savings within three years, though realization depends on execution and market assumptions.
- New clean energy investments include significant expense and after-tax cash flow estimates for 2025 and beyond, with outcomes tied to U.S. taxable income and future tax policy.
- Forward-looking guidance highlights estimated quarterly and full-year foreign currency impacts on EPS and revenues, with detailed adjustments provided for the brokerage segment.
- The commentary outlines significant acquisition-related costs including integration, workforce, and lease termination expenses, along with adjustments to depreciation and amortization metrics.
- It also addresses the pending acquisition of Assured Partners, including the financing details of approximately $8.5 billion in cash and $5.0 billion in senior notes, impacting future performance estimates.
- The report reinforces the use of non-GAAP measures such as adjusted EBITDAC Margin and Adjusted Net Earnings to provide a clearer view of operating performance.
- Strong Q1 2025 performance: GAAP EPS of $3.29, adjusted EPS of $4.16, and 14% revenue growth across Brokerage and Risk Management segments.
- Brokerage delivered 9.5% organic growth with an adjusted EBITDAC margin of 43.4%, while Risk Management achieved 3.9% organic growth with margins at 20.5%.
- Net earnings margin increased by 175 basis points to 23.0% with a consolidated adjusted EBITDAC margin of 41.1%.
- Active M&A initiatives: Completed 11 mergers (including the acquisition of Woodruff Sawyer) and executed 11 tuck-in deals generating about $100 million in annualized revenue, with Woodruff Sawyer expected to add over $250 million.
- Strong M&A pipeline with pending AssuredPartners acquisition and capacity projections of over $2 billion in 2025 and $5 billion in 2026.
- Detailed disclosures covering both GAAP and non‐GAAP measures were provided during the webcast on May 1, 2025.
- Arthur J. Gallagher & Co. acquired New Zealand-based First Capital Financial Services and its affiliate First Capital Wealth Management, expanding its international portfolio.
- The acquisition enhances Gallagher's service offerings in wealth management, risk management, and employee benefits across New Zealand, with operations in Christchurch and Auckland.
- Hugh Percy and his team will join under the leadership of Graham Campbell to bolster Gallagher’s consulting capabilities in Australia and New Zealand.
- Arthur J. Gallagher & Co. finalized its acquisition of San Francisco-based Woodruff Sawyer, reinforcing its strategic expansion.
- The firm, headquartered in Rolling Meadows, Illinois, operates in approximately 130 countries, offering global insurance brokerage, risk management, and consulting services.
- The company executed an Amended and Restated Credit Agreement on April 3, 2025, establishing new credit facility terms with published deal CUSIP numbers 04313PAE8 and 04313PAF5.
- The agreement involves Arthur J. Gallagher & Co. and its subsidiaries as borrowers, with major lenders including Bank of America, N.A., Capital One, and others acting as administrative agents, lead arrangers, and syndication agents.
- The filing confirms compliance with applicable legal, regulatory, and financial covenant requirements, noting that no material defaults or events of default have occurred.
- Arthur J. Gallagher & Co., a global leader operating in approximately 130 countries , reinforces its market position with three strategic acquisitions.
- The firm acquired London-based Bircroft Insurance Services to enhance its specialist capabilities in the UK real estate market, with Ian Lee and Simon Bird leading the integration into its UK & Ireland Retail division .
- It also acquired Imbs Holdings, Inc., expanding its retail brokerage presence in the US South Central region under the leadership of Bret VanderVoort .
- Additionally, the acquisition of Australia-based Tresidder Insurance Brokers boosts its international presence by integrating property/casualty brokerage expertise for both commercial and personal lines in Australia .
- Arthur J. Gallagher & Co. announced the acquisition of Litchfield Special Risks, Inc., a wholesale insurance broker and managing general agency specializing in transportation and property/casualty solutions in Texas and the Southwest US.
- The acquisition enhances Gallagher's U.S. wholesale brokerage presence and expands its capacity in the Texas market, with key LSR personnel remaining in place under the leadership of RPS's VP-Western Region.
- Pending Acquisition: The executives detailed the pending acquisition of AssuredPartners, noting a second request from the Department of Justice on their HSR filing and an expected closing in the second half of 2025.
- Strategic Focus: The call emphasized a four-pronged value creation strategy—organic growth, mergers and acquisitions, productivity improvements, and reinforcing the company’s culture—to drive shareholder returns.
- Market Environment & Guidance: Leaders described a robust insurance market with strong casualty premium increases and provided guidance expecting full-year brokerage segment organic growth in the 6% to 8% range alongside margin expansion.
- Operational Synergies & Cash Management: Discussion included the integration and cost benefits from recent tuck-in acquisitions, details on margin expansion driven by the merger-cash dynamics, and the effective use of a strong cash position, notably holding nearly $15.5 billion for acquisitions.