Arthur J. Gallagher & Co.

What they do

Gallagher provides insurance and reinsurance brokerage, risk management consulting, and third-party property/casualty claims settlement and administration. The brokerage segment (87% of 2025 revenues) operates through a network of over 650 U.S. and approximately 400 international offices. The risk management segment (13% of 2025 revenues) provides claims administration and loss control for self-insured entities. The company does not assume underwriting risk on a net basis.

Revenue drivers

• Brokerage – commissions and fees — Commissions, fees, supplemental and contingent revenues from insurance and reinsurance placements. 2025 revenue: $12.19B, up 23% YoY; organic growth 6%.
• Risk Management – fees — Fees, including performance-based fees, for third-party claims administration and risk management services. 2025 revenue before reimbursements: $1.59B, up 9% YoY; organic growth 6%.
• Interest income, premium finance and other — Interest earned on cash and fiduciary funds and revenue from premium financing, contributing to brokerage segment revenue.

Recent performance

For Q2 2026, total company revenue (before reimbursements) was $3.96B, up from $3.18B in Q2 2025. Reported net earnings were $324M, down from $368M, but adjusted net earnings rose to $734M from $604M. Diluted EPS was $1.25 reported and $2.84 adjusted, versus $1.40 and $2.30 in the prior-year quarter. For the six months ended June 30, 2026, revenue was $8.76B. Full-year 2025 revenue was $13.94B, net income $1.49B, and diluted EPS $5.74.

Strategy

Gallagher continues a growth strategy centered on acquisitions, with notable 2025 deals including AssuredPartners and Woodruff Sawyer, and expects to expand international operations through both acquisitions and organic growth. The company integrates acquisitions and expects to realize cost savings and synergies, including from the large Willis Towers Watson treaty reinsurance brokerage acquisition. Management uses adjusted EBITDAC as a key performance measure and is focused on organic revenue growth and margin expansion.

Risks

• Economic and geopolitical conditions — Global disruptions, inflation, interest rate volatility, and armed conflicts could hurt results.
• Acquisition integration risk — Large acquisitions such as AssuredPartners and Woodruff Sawyer involve integration costs and may not achieve expected synergies.
• Competitive pressures — The insurance brokerage and claims administration markets are highly competitive, which could pressure margins and revenues.
• Technology and AI risks — Failure to effectively use technology, data analytics, and AI could harm client relationships, efficiency, and compliance.

Outlook

Management expects continued revenue growth, with adjusted EBITDAC expanding. Clean energy investments are anticipated to produce after-tax losses in 2026. The company plans to continue executing its acquisition strategy and expanding internationally.