Q2 2024 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$249.08April 1, 2024
Final Price$259.22July 1, 2024
Price Change$10.14
% Change+4.07%
- Wholesale organic growth exceeded expectations, reaching 11% in the quarter due to a 31% increase in submissions during June, indicating a continued use of wholesalers and no significant shift back to the primary market.
- The Risk Management segment remains a near double-digit grower, with growth rates of 12% in '22, 13% in '23, and expected to be around 9% this year. The company is seeing increasing opportunities in the $2 million to $10 million customer segment, with new business sales nearly doubled compared to five years ago.
- Expansion of net new business, with the spread between new and lost business increasing by a full point year-to-date June. Significant investments of about $1 billion over the last 5-7 years in resources and capabilities are expected to drive better net new business performance.
- Risk Management segment's organic growth is slowing, with guidance adjusted to around 9% for the full year, down from the prior range of 9% to 11%. This indicates potential deceleration in growth for this segment.
- Contingent commissions may be impacted by uncertainties in casualty reserves, with the company acknowledging that they are being cautious on casualty and that there could be some adjustments, which might affect earnings.
- M&A activity is below expectations, with only $700 million spent in the first half out of the $3.5 billion available for mergers and acquisitions in 2024, suggesting potential challenges in deploying capital for growth.