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Gallagher revenue jumps 15% in Q3

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Q3

Arthur J. Gallagher & Co. reported total revenue of $1.74 billion for the third quarter on Thursday, a 15.3% increase over the same period last year. 

Gallagher’s core brokerage unit reported revenues of $1.5 billion, a 14.2% increase.

“We are experiencing positive revenue movement” and are seeing encouraging signs for the remainder of the year and for 2022, J. Patrick Gallagher Jr., chairman, president and CEO, said during a call with analysts Thursday.

Overall, third-quarter renewals for property/casualty business increased about 8%, which was similar to the increases seen during the first half of the year, he said.

The property/casualty market will remain difficult, with rate increases persisting “for quite a while” and no meaningful changes anticipated, he said.

“I just don’t see a dramatic change for the foreseeable future,” Mr. Gallagher said.

Mr. Gallagher said the company completed five brokerage mergers during the quarter, accounting for $16.1 million of annualized revenue.

Also discussed during the conference call was Gallagher’s agreement, announced in August, to acquire Willis Towers Watson’s treaty reinsurance brokerage operations for a purchase price that could rise to $4 billion.

Mr. Gallagher said the deal is on track to close during the fourth quarter. “There is very little, if any, overlap. We are not competing head-to-head, really, on much if at all,” Mr. Gallagher said. There are no major renewals across the treaty book that are in conflict. 

The Gallagher Re and Willis Re teams “will hit the ground running with a new, improved, much-expanded Gallagher Re” that brings “tremendous additional capabilities,” he said.

Mr. Gallagher said also “there’s been very little attrition” at Willis Re since the deal’s announcement.

 

 

 

 

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