Arthur J. Gallagher & Co.'s Stock Analysis

Arthur J Gallagher Co Announces Investor Meeting for September 2024

Arthur J. Gallagher & Co. has announced an investor meeting scheduled for September 18, 2024. The meeting will include a webcast and presentation materials available on the company's investor relations page.

The CFO Commentary provided during the meeting will include estimates related to the company's 2025 results, details on the integration of AssuredPartners, Inc., and projections for net after-tax cash flows from clean energy investments for 2025 and beyond.

Sep 18, 2025 09:03:39

Arthur J. Gallagher Completes $13.8 Billion Acquisition of AssuredPartners

Arthur J. Gallagher & Co. has finalized the acquisition of Dolphin Topco, Inc. (AssuredPartners) for $13.8 billion in cash, funded through previously disclosed equity and debt financing. This acquisition is expected to enhance Gallagher's capabilities in the insurance brokerage market, particularly in commercial property/casualty and employee benefits, while expanding its reach in the U.S., U.K., and Ireland. The transaction is anticipated to create new business opportunities and increase Gallagher's scale and expertise in various niche sectors.

In connection with the acquisition, Gallagher's Compensation Committee has approved $316.15 million in equity awards to retain 572 former AssuredPartners employees who transitioned to Gallagher. These awards will be granted in Gallagher common stock and will vest over a period of five years. The closing of this transaction is expected to have a positive impact on Gallagher's adjusted earnings per share, contributing to potential financial growth for the company.

Aug 18, 2025 08:18:13

Arthur J. Gallagher Reports Second Quarter 2025 Financial Results

Arthur J. Gallagher & Co. reported its financial results for the second quarter of 2025, highlighting a 16% revenue growth in its core brokerage and risk management segments, with organic revenue growth of 5.4%. The company’s net earnings margin increased to 17.3%, and adjusted EBITDAC margin rose to 34.5%, with adjusted EBITDAC growing by 26% year over year. Gallagher completed nine mergers in the quarter, contributing approximately $290 million in estimated annualized revenue, and is on track to close the pending acquisition of AssuredPartners in the third quarter of 2025.

As of June 30, 2025, Gallagher had total borrowings of $9.55 billion from public debt and $3.32 billion from private placements, with no borrowings under its line of credit. The company amended its credit agreement to extend the maturity date and increase the commitment. Gallagher's effective tax rate for the second quarter was 22.3%, slightly up from 21.9% in the same period last year. The company continues to navigate the global property and casualty insurance market, noting differences in premium renewal rates, with property declining by 7% and casualty increasing by 8%.

Jul 31, 2025 17:07:20

Arthur J. Gallagher & Co. Reports Q1 2025 Financial Results

Arthur J. Gallagher & Co. announced its financial results for the first quarter of 2025, highlighting a 14% revenue growth in its core brokerage and risk management segments, with organic revenue growth of 9%. The company reported a net earnings margin increase of 175 basis points to 23.0% and an adjusted EBITDAC margin growth of 338 basis points to 41.1%. Gallagher also completed 11 new mergers during the quarter, contributing approximately $100 million in estimated annualized revenue, and acquired Woodruff Sawyer, adding over $250 million in estimated annual revenue.

The company is in the process of acquiring AssuredPartners for approximately $13.45 billion, pending regulatory approvals. Gallagher reported total borrowings of $9.55 billion from public debt and $3.52 billion from private placements, with no borrowings under its line of credit. The effective tax rate for the quarter was 18.8%, a decrease from 20.7% in the previous year. Gallagher will host a webcast conference call to discuss these results further on May 1, 2025.

May 01, 2025 16:25:44

Arthur J. Gallagher & Co. Amends Credit Agreement with Increased Commitment

Arthur J. Gallagher & Co. has amended its Credit Agreement, extending the maturity date from June 22, 2028, to April 3, 2030, and increasing the total commitment from $1.7 billion to $2.5 billion. This includes provisions for a $75 million letter of credit sub-facility and a $250 million Euro swingline sub-facility, with potential to increase commitments up to $3 billion with additional lenders.

However, other material terms such as financial ratios and all-in drawn pricing have not changed in the amended agreement. The summary provided does not include all details and is qualified by the full text of the A&R Credit Agreement, which is referenced in the filing.

Apr 04, 2025 16:45:40

Arthur J. Gallagher Reports $387 Million in Annualized Revenue

Arthur J. Gallagher & Co. announced a successful fourth quarter, achieving 16 consecutive quarters of double-digit revenue growth, including organic revenue growth of 7%. The company reported an increase in net earnings margin to 13.5% and adjusted EBITDAC margins to 31.4%, with adjusted EBITDAC growing by 17%. Additionally, Gallagher completed 20 new mergers in the quarter, contributing to a total of 48 mergers for the year and an estimated annualized revenue of $387 million from these acquisitions.

However, the company faced significant adjustments in its financial reporting, with a pretax impact of $1,021.4 million for the Brokerage segment attributed to non-cash expenses related to intangible amortization. The Corporate segment also reported a pretax loss, which included various costs related to acquisitions and clean energy investments. Furthermore, the consolidated effective tax rate increased to 21.6% for the year, compared to 18.5% in 2023, indicating a rise in tax obligations.

Jan 30, 2025 16:56:21

Company Faces Financing and Integration Challenges in Acquisition

The company is pursuing an acquisition of Dolphin TopCo, Inc., which could potentially enhance earnings per share post-transaction. However, there are significant uncertainties surrounding the completion of the deal, as general market conditions and volatility may hinder financing efforts. The company anticipates that the transaction will be accretive, but this expectation relies on several assumptions that could change, impacting future earnings and stock performance. Additionally, the integration of the acquired entity may present challenges that could divert management resources and affect operational results.

On the negative side, the company faces risks related to securing adequate financing for the acquisition, which may not occur on favorable terms or in a timely manner. The reliance on certain assumptions for the pro forma financial information raises concerns about its accuracy and reliability. Moreover, potential integration issues could lead to unforeseen obligations or liabilities, further complicating the transaction. The lack of historical performance data for the combined entity adds to the uncertainty, making it difficult for investors to gauge the potential success of the acquisition.

Dec 11, 2024 17:20:29

Arthur J. Gallagher to Acquire AssuredPartners for $13.45 Billion

Arthur J. Gallagher & Co. has signed an agreement to acquire AssuredPartners for a total consideration of $13.45 billion, which is expected to enhance Gallagher's capabilities in the middle-market insurance sector across the U.S. The acquisition aims to leverage Gallagher's resources and expertise, potentially leading to significant synergies and double-digit adjusted earnings per share accretion. The deal is anticipated to add approximately 10,900 employees to Gallagher's workforce and expand its operational footprint in the U.K. and Ireland.

However, the transaction is subject to regulatory approvals and may face integration challenges. Gallagher expects to incur about $500 million in integration costs, which includes non-cash retention awards. Additionally, the pro forma EBITDAC multiple stands at 14.3x, raising concerns about the financial implications of the acquisition. The anticipated synergies of $160 million over three years may not materialize as expected, and the overall financing strategy, which involves leveraging debt, could affect Gallagher's investment-grade rating.

Dec 09, 2024 06:10:02

Arthur J. Gallagher Reports Strong Third Quarter Performance

Arthur J. Gallagher & Co. announced a successful third quarter for 2024, showcasing a 13% increase in total revenues and a 12% growth in net earnings. The company completed four new mergers and experienced organic revenue growth of 6%. Their focus on maintaining a strong company culture and robust client relationships is evident, with positive indicators of economic activity across their client base. The management expressed optimism regarding future opportunities and their strong positioning in the market.

However, the report also highlighted significant adjustments related to non-cash expenses, particularly in the Brokerage segment due to intangible asset amortization. Although the overall financial results were strong, the increased costs associated with acquisitions and higher employee benefit expenses were notable concerns. The company is navigating complexities in insurance pricing due to recent U.S. hurricanes, which may impact future renewals. Despite these challenges, Gallagher remains committed to supporting clients affected by recent storms and is actively managing its acquisition strategy.

Oct 24, 2024 16:23:02

Arthur J. Gallagher & Co. Reports Strong Q2 2024 Results

Arthur J. Gallagher & Co. reported a successful second quarter with a 14% revenue growth and a 7.7% increase in organic revenue. Their net earnings margin improved to 13.9%, and they completed 12 mergers, boosting future revenue potential. The insurance market remains stable, with rising renewal premiums. Overall, the company is optimistic about its performance and growth prospects for 2024.

Jul 25, 2024 16:26:52