Arthur J. Gallagher Reports Strong Q1 2025 Growth

Arthur J. Gallagher ( (AJG) ) has released its Q1 earnings. Here is a breakdown of the information Arthur J. Gallagher presented to its investors.

Arthur J. Gallagher & Co., a global insurance brokerage and risk management firm, has reported its financial results for the first quarter of 2025, showcasing significant growth in its core segments. The company, headquartered in Rolling Meadows, Illinois, operates in approximately 130 countries, providing insurance brokerage, risk management, and consulting services.

In the first quarter of 2025, Arthur J. Gallagher & Co. reported a robust performance with a 14% increase in revenue, driven by 9% organic growth. The company’s net earnings margin improved by 175 basis points to 23.0%, while the adjusted EBITDAC margin rose by 338 basis points to 41.1%. The firm also completed 11 mergers, contributing approximately $100 million in estimated annualized revenue, and acquired Woodruff Sawyer, adding over $250 million in estimated annual revenue.

Key financial metrics for the quarter include total revenues of $3,688.4 million, up from $3,218.1 million in the same period last year. The brokerage segment reported revenues of $3,314.6 million, an increase from $2,864.9 million, with adjusted net earnings of $1,034.4 million, up from $796.8 million. The risk management segment also saw growth, with adjusted net earnings of $48.9 million compared to $45.5 million in the previous year.

The company’s strategic focus on acquisitions and organic growth has been a significant driver of its financial performance. The pending acquisition of AssuredPartners is expected to further bolster its market position. The global property and casualty insurance market remains favorable, with carriers seeking growth opportunities and rate increases where necessary.

Looking ahead, Arthur J. Gallagher & Co. remains optimistic about its growth prospects for 2025 and beyond, supported by its talented workforce and strategic acquisitions. The company continues to navigate the evolving insurance landscape with a focus on delivering value to its clients and shareholders.