Arthur J. Gallagher sees net earnings slide in Q3

Brokerage segment, however, enjoys boost

Arthur J. Gallagher sees net earnings slide in Q3

Insurance News

By Terry Gangcuangco

Global insurance brokerage and risk management group Arthur J. Gallagher & Co. (AJG) has released its financial results for the third quarter of 2019, and they’re a mixed bag.

The whole enterprise saw a slight decline in net earnings, from US$138.4 million in last year’s third quarter to US$137.1 million this time around. Broken down into segments, here’s how AJG fared in the period in terms of net earnings:

  • Brokerage – US$151.1 million, up 24%
  • Risk management – US$16.2 million, down 2%
  • Corporate – a loss of US$30.2 million

Commenting on the numbers, chairman, president, and chief executive J. Patrick Gallagher, Jr., stated: “We delivered an outstanding quarter of operating performance, and we are well positioned for a strong finish to 2019.

“During the third quarter, our core brokerage and risk management segments combined to post 16% growth in earnings per share; 13% growth in revenues, of which 5.8% was organic revenue growth; net earnings margin improved by 78 basis points; and adjusted EBITDAC margins expanded by 66 basis points.”

The AJG boss added that the Illinois-headquartered company completed 14 tuck-in mergers in the period.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!