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Gallagher releases numbers for Q1 2022

Gallagher releases numbers for Q1 2022 | Insurance Business UK

Gallagher releases numbers for Q1 2022

Arthur J. Gallagher & Co. (Gallagher) thrived during the first quarter of 2022, despite the challenges resulting from the persistence of the COVID-19 pandemic, the conflict between Ukraine and Russia, and other factors. It reported that its core brokerage and risk management segments combined to post 30% growth in revenue, including over 10% organic revenue growth and US$380 million of acquired rollover revenues.

For the three months to March 31, 2022 (Q1 FY22), Gallagher saw US$613.3 million net earnings (as adjusted) for the brokerage segment (compared to US$453.8 million in Q1 FY21), US$25.6 million net earnings (as adjusted) for risk management (compared to US$21.4 million in Q1 FY21), and US$39.5 million net earnings (as adjusted) for corporate (compared to US$11.3 million in Q1 FY21).

“Our bottom-line results were equally as strong with net earnings growth of 28%, adjusted EBITDAC growth of 34%, and adjusted EBITDAC margin expansion of 55 basis points,” said Gallagher chairman, president, and CEO J. Patrick Gallagher, Jr.

Simon Matson, EMEA CEO, Gallagher, shared that Gallagher's UK broking and underwriting business saw a “very strong” first quarter, delivering 14% organic growth.

“This is an excellent achievement shared across our different divisions, with UK Retail delivering 10% growth and London Speciality, including our legacy UK-based Gallagher Re operations, achieving 17% growth,” Matson said. “To help support our continued growth, we continue to invest in new hires, and we are delighted to have welcomed 380 new colleagues in the UK as we continue to add further talent to our workforce.”

Concerning the conflict between Ukraine and Russia during Q1 FY22, Gallagher confirmed that it does not have offices or direct operations in both countries. It had a small number of clients based in or operating in Russia, but it suspended those relationships and no longer provides services to them. Additionally, it implemented robust procedures to comply with all applicable sanction laws.

Gallagher estimates that its actions in response to the conflict will adversely impact full-year 2022 brokerage segment annual revenues by up to US$10 million and full-year 2022 net after tax earnings by up to US$0.03 per share, with a US$0.01 adverse impact in Q1 2022.