Arthur J. Gallagher & Co. Reports 14.5% Revenue Growth to $3.73 Billion in Latest Quarter

Arthur J. Gallagher & Co. reported significant financial growth in its latest quarterly results, with total revenues reaching $3.73 billion for the three-month period ending March 31, 2025, a 14.5% increase from $3.26 billion in the same period last year. The company's net earnings attributable to controlling interests also rose to $704.4 million, up from $608.4 million, reflecting a 15.8% increase. However, diluted net earnings per share slightly decreased to $2.72 from $2.74 year-over-year, attributed to a higher number of shares outstanding following recent equity offerings.

The company experienced notable growth in its brokerage segment, which accounted for approximately 89% of total revenues. Commissions increased by 12.8% to $2.25 billion, while fees rose to $620.2 million, a 2.2% increase. Supplemental revenues and contingent revenues also saw increases of 21.3% and 8.0%, respectively. The risk management segment contributed $373.4 million in revenues, marking a 5.8% increase compared to the previous year. The overall growth was driven by strong customer retention, new business generation, and rising renewal premiums.

Strategically, Gallagher has been active in expanding its operations through acquisitions. In the first quarter of 2025, the company completed eleven acquisitions, contributing an estimated $100.9 million in annualized revenues. Notably, Gallagher is in the process of acquiring AssuredPartners for $13.45 billion, a transaction expected to close in the second half of 2025, pending regulatory approvals. Additionally, Gallagher finalized the acquisition of Woodruff Sawyer for $1.2 billion in April 2025, further enhancing its market presence.

Operationally, Gallagher's workforce increased to 43,120 employees, up from 39,989 a year earlier, reflecting the company's growth strategy. The company also reported a significant increase in cash and cash equivalents, totaling $22.24 billion as of March 31, 2025, compared to $7.08 billion a year prior. This increase is largely attributed to proceeds from equity offerings and strong cash flow from operations, which amounted to $871.8 million for the quarter, up from $789.3 million in the previous year.

Looking ahead, Gallagher anticipates continued growth driven by favorable market conditions, including rising property/casualty insurance rates and strong demand for its services. The company expects to leverage its recent acquisitions and ongoing operational improvements to enhance its market position and drive further revenue growth in the coming quarters.