Gallagher highlights ‘fantastic’ quarterly results

Growth in net earnings is sure to catch the eye…

Gallagher highlights ‘fantastic’ quarterly results

Insurance News

By Duffie Osental

Arthur J. Gallagher ended 2018 on a high note, reporting 47% growth in net earnings for its brokerage and risk management segments in the fourth quarter of 2018.

In terms of total revenue, Gallagher reported fourth quarter growth of 11.1%, of which 5.8% was organic. In addition to this, EBITAC growth for the quarter stood at 18%. Gallagher defines EBITAC as net earnings before interest, income taxes, depreciation, amortisation, and the change in estimated acquisition earnout payables.

“We finished 2018 with a fantastic fourth quarter,” said J. Patrick Gallagher, Jr., chairman, president and CEO. “Total company fourth quarter 2018 diluted net earnings per share was US$0.63 and total company adjusted diluted net earnings per share was US$0.53, up 62% and 15%, respectively.”

Overall, Gallagher had a successful full-year 2018, with total revenue growth of 10.8% and net earnings growth of 37%. In addition to this, the insurer’s energy investments had a terrific fourth quarter and full year 2018, posting net earnings of US$22 million and US$118.6 million, respectively.

“We have excellent momentum coming into 2019,” said Gallagher in a statement.  “The insurance rate environment and exposure growth continue to be a slight revenue tailwind for Gallagher in most geographies. This is an excellent environment for our professionals to demonstrate their expertise, their market knowledge, and our capabilities.”

“Additionally, we have a very strong pipeline of tuck-in acquisitions globally. Thus far in January we have already announced seven acquisitions for approximately US$130 million of annualised revenue.  Most importantly, our unique client sales and service culture is stronger than ever across the world.”


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