Total Revenue

+14.5% (from $3,256.7M to $3,727.4M)

Total revenue grew by 14.5% in Q1 2025 versus Q1 2024, driven by robust performance in both the Brokerage and U.S. segments. The increase builds on previous period momentum—with Brokerage up 15.7% and U.S. revenue up 15.3%—reflecting strong organic gains and effective acquisition integration. " "

Brokerage Revenue

+15.7% (from $2,864.9M to $3,314.6M)

The Brokerage segment saw a 15.7% increase, fueled by higher commissions, fees, and supplemental revenues. This builds on earlier trends where strategic acquisitions and organic growth had already enhanced the revenue base in prior periods. " "

Risk Management Revenue

+5.3% (from $391.4M to $412.4M)

Risk Management revenue grew modestly by 5.3% YoY, driven by steady fee growth and operational improvements. This more modest increase compared to Brokerage reflects a continuity of performance with incremental gains over the previous period. " "

U.S. Geographic Revenue

+15.3% (from $2,134.9M to $2,463.4M)

U.S. revenue increased by 15.3%, with strong commissions and fee growth in the domestic market. This surge aligns with broader revenue trends and builds upon the strong U.S. performance seen earlier, emphasizing effective market expansion. "

Net Earnings Attributable to Controlling Int.

+15.7% (from $608.4M to $704.4M)

Net earnings improved by 15.7% as higher overall revenue and better operating efficiencies translated into increased profit. The positive change continues trends from prior periods where enhanced margins and disciplined cost management had contributed to earnings growth. " "

Basic Net EPS

–1.4% (from $2.80 to $2.76)

Despite stronger earnings, basic net EPS dipped slightly by 1.4% due to dilution from an increased weighted average share count—stemming from stock issuances related to acquisitions—offsetting the earnings gains from improved operating performance. " "

Dividends per Share

+8.3% (from $0.60 to $0.65)

The increase in dividends per share by 8.3% reflects the firm’s strong cash generation and confidence in maintaining shareholder returns, building on prior fiscal strength and a consistent dividend policy. " "

Cash and Cash Equivalents

+846% (from $1,762.6M to $16,691.8M)

An 846% surge in cash and cash equivalents is primarily attributable to significant financing inflows—including $13.5B from AssuredPartners Financing and an overallotment provision exercise—marking a dramatic shift from previous period balances. " "

Total Stockholders’ Equity

+97.3% (from $11,344.2M to $22,353.7M)

Stockholders’ equity nearly doubled, due to robust net earnings retention combined with substantial equity infusions from public offerings, employee stock plans, and other issuances. This sharp increase further builds on an already strong equity base from prior periods. " "

Total Assets

+21.4% (to $74,095.7M)

Total assets grew by 21.4%, reflecting the combined effects of organic operational growth and significant financing activity. This growth is consistent with prior trends of asset accumulation, now supplemented by large cash inflows. "

Total Liabilities

–6.6% (declined to $37,036.0M)

Total liabilities declined by 6.6% YoY, indicating effective deleveraging or liability management. This contrasts with other balance sheet expansions and underscores a strategic reduction relative to previous higher leverage levels. " "

Operating Cash Generated

+10.5% (from $789.3M to $871.8M)

Operating cash flow increased by 10.5%, driven by improved efficiency in core operations and favorable timing differences in cash receipts versus disbursements compared to Q1 2024. This improvement continues the trend seen in prior periods, bolstering overall liquidity. " "

Brokerage Organic Growth

Q1 2025

6% to 8% organic growth guidance for 2025; Benefits at 5%, Reinsurance at 9% "

no current guidance

no current guidance

Risk Management Organic Growth

Q1 2025

6% to 8% guidance for 2025, slightly lower than 9% to 11% guidance for 2024 "

no current guidance

no current guidance

Contingents and Supplementals

Q1 2025

Small shortfall in Q4 2024 with expectation to bounce back in 2025 "

no current guidance

no current guidance

Brokerage Organic Growth

FY 2025

no prior guidance

6% to 8% "

no prior guidance

Risk Management Organic Growth

FY 2025

no prior guidance

6% to 8% (improving from the 3.9% reported in Q1 2025) "

no prior guidance

Adjusted EBITDAC Margin

FY 2025

no prior guidance

Around 20.5% "

no prior guidance

After-Tax Expense

FY 2025

no prior guidance

Increased by about $1 million per quarter "

no prior guidance

Tax Credit Carryovers

FY 2025

no prior guidance

Approximately $710 million with additional cash flow over $180 million "

no prior guidance

FX Impact

FY 2025

no prior guidance

Updated estimates for revenue and EPS impacts "

no prior guidance

Investment Income

FY 2025

no prior guidance

Assumes two 25 basis point rate cuts "

no prior guidance

Tuck-In Acquisitions

FY 2025

no prior guidance

Average EBITDAC multiple paid of 11.5x (above the typical 10x to 11x range) "

no prior guidance

Supplemental Commissions

FY 2025

no prior guidance

Strong Q1 2025 performance noted "

no prior guidance

M&A Activity & Integration

Consistently detailed in Q4 2024, Q3 2024, and Q2 2024 with discussions of multiple tuck‐in mergers, the AssuredPartners acquisition, robust pipelines, and integration efforts. " " " " "

In Q1 2025, the company highlighted strong M&A capacity (over $2B in 2025 and $5B in 2026) and successful integrations (e.g. Gallagher Re and AssuredPartners) contributing to growth. " " "

Consistent focus with a continued robust pipeline and smooth integrations reinforcing long‐term strategic positioning.

Reinsurance Growth & Performance

Across Q2–Q4 2024, Gallagher’s reinsurance segment was noted for steady organic growth (8–13%) with enhancements from new business wins and system upgrades; strong integration with wholesale and specialty units was emphasized. " " "

Q1 2025 featured standout performance with 20% organic growth in Gallagher Re, driven by new client wins, increased renewal premiums, and system enhancements – though some favorable timing effects are expected to reverse later. " " "

Consistently strong performance that builds on prior momentum with an even sharper focus on integration and technology, while noting some near‐term timing risks.

Pricing Environment Dynamics

In Q2, Q3, and Q4 2024, detailed breakdowns were provided on renewal premium changes across product lines and regions – indicating a rational yet evolving pricing environment with modest increases and occasional declines in property/reinsurance pricing. " " "

Q1 2025 continues to reflect a rational pricing market with product‐line–specific changes (e.g., property down; personal and casualty up) and disciplined underwriting in reinsurance renewals. " "

Steady but nuanced: The focus remains on detailed, product‐specific pricing shifts with a similar overall rational tone, though carriers maintain a cautious approach.

Organic Growth Trends Across Segments

Q2–Q4 2024 earnings calls broke out segment growth (brokerage, risk management, reinsurance, etc.) with numbers ranging from mid‐to high single digits and even double digits in certain areas. " " "

Q1 2025 reported brokerage organic growth at 9.5% along with stronger growth in reinsurance (20%) and detailed performance across segments; new business and timing factors were highlighted. " "

Consistent emphasis on organic growth with steady performance, though the current period shows slightly higher overall numbers and anticipates rebound in underperforming segments later.

International Growth Sentiment

Q2 2024 and Q3 2024 conveyed an optimistic tone with reported organic growth of 7–10% in regions like the U.K., Australia/New Zealand, and positive contributions from offshore centers, despite Canada being flattish. " "

In Q1 2025, sentiment is more mixed, with international operations posting only 4% organic growth and regional disparities (e.g. slow in Australia/NZ, flat in Canada). " "

Shift from optimism to mixed sentiment: While previous periods celebrated robust international performance, Q1 2025 shows a slight drag, indicating potential future challenges.

Workforce Expansion & Cost Pressures

Prior periods (Q2–Q4 2024) discussed leveraging offshore centers (growing from thousands to 12,000+ employees) and technology investments to manage wage inflation and cost pressures, while strategically expanding the workforce. " " "

Q1 2025 highlights a strong domestic labor market with over 7 million open jobs and underscores the need for creative solutions to balance workforce expansion and rising healthcare costs. "

Ongoing focus: The company maintains its strategy of controlled expansion and cost efficiencies through technology, though domestic labor pressures are becoming more acute.

Exposure to Catastrophic Events

In Q2–Q4 2024, discussions focused on reinsurance market dynamics with sufficient capacity to cover high estimated catastrophe losses, and only minor financial impacts were noted from recent storms and floods. " " "

Q1 2025, however, uses the term “fragile” to describe the property market – emphasizing vulnerability to catastrophic events like wildfires and hurricanes, and noting that such events could reverse current trends. " "

Emerging risk concern: Previously managed within reinsurance metrics, catastrophic exposure now raises alarms about property market fragility, suggesting a growing sensitivity to climate risks.

Data & Analytics Capabilities

Q2–Q4 2024 earnings calls underscored significant investments in data and analytics (with nearly $1B invested over several years) and highlighted these capabilities as key differentiators in underwriting and client service. " " " "

In Q1 2025, there is continued emphasis on data-driven tools (e.g., Gallagher Win, Gallagher Drive) and analytics capabilities that enhance sales effectiveness and risk management in an evolving market. " "

Deepening focus: The company consistently prioritizes data and analytics with ongoing investments, further maturing these tools as competitive differentiators.

Property Market Fragility

Prior periods (Q2–Q4 2024) mentioned property pricing dynamics and orderly renewals, with no explicit discussion on market fragility as a risk factor. " " "

Q1 2025 introduces strong language around the property market being “fragile,” citing heightened sensitivity to catastrophic events and increasing vulnerability among middle-market customers. " "

New risk emerging: This concern wasn’t emphasized before, signaling a potential shift in market sentiment towards recognizing increased vulnerability in the property sector.

Competitive Dynamics in the Middle Market

Q2–Q4 2024 consistently noted that Gallagher competes mainly against independent brokers, with the integration of acquisitions (like AssuredPartners) boosting their competitive “at bats” and market presence. " "

In Q1 2025, competitors remain a factor – with discussions noting that middle market customers are sensitive to catastrophic exposure, yet opportunities persist due to solid employment growth and proactive approaches to rising costs. " "

Stable focus: While competition remains fierce against smaller players, strategic acquisitions continue to improve market positioning even as external risks add nuance to the competitive landscape.

Claims Frequency & Complexity Impact

Q4 2024 detailed how increased claim frequency boosted Gallagher Bassett’s revenue on a per‐claim basis, and Q3/Q2 had minor mentions of rising claim counts supporting revenue. " " "

Q1 2025 did not specifically address claims frequency or complexity, marking a reduced emphasis on this operational metric compared to previous periods.

Reduced emphasis: What was once a notable contributor is less discussed now, suggesting either stabilization or lower prioritization in the current narrative.

Wholesale Organic Growth & New Business Expansion

Across Q2–Q4 2024, wholesale segments consistently achieved organic growth (ranging from 8% to 11%) with strong new business pipelines and increasing submission counts. " " "

Q1 2025 maintained focus on wholesale performance with reported combined organic growth of 13% in reinsurance, wholesale, and specialty areas, and continued emphasis on new, “big chunky” deals in new business wins. " "

Consistent performance: Strong and stable wholesale growth with an ongoing emphasis on new business expansion, though the current period integrates these gains into an overall higher organic growth picture.

Risk Management Segment Growth

Q2–Q4 2024 showcased detailed performance in the Risk Management segment with organic growth figures ranging from 6% to 13% and consistent margins around 20.5%–20.8%. " " " "

In Q1 2025, Risk Management posted lower revenue growth (3.9%) due to lagging new business revenue, though the outlook remains positive with expectations of rebound later in the year. " "

Mixed signals: The segment shows early underperformance in Q1 with expectations to recover later, reflecting cautious optimism despite a history of strong growth.

Contingent Commissions & Casualty Reserve Uncertainty

Q2–Q4 2024 discussions addressed contingent commissions with some quarterly fluctuations and shortfalls (e.g. a $7M gap in Q4) and ongoing market uncertainty around casualty reserves, though impacts were described as minor or capped. " " " "

Q1 2025 mentioned that contingent commissions remain volume‐based with minor potential adjustments and briefly touched on casualty reserve pressures primarily in the context of overall market caution. "

Reduced emphasis with lingering uncertainty: While still monitored, both topics receive less detailed discussion in Q1 2025, suggesting that they are not viewed as transformative in the near term.