Excluding items, the insurance and reinsurance broker reported adjusted earnings of $370.8 million or $1.72 per share for the three-month period ended September 30.
Gallagher’s overall revenues were down slightly at $2,012.0 million this quarter, from $2,105.6 million a year ago. But total revenues for the combined brokerage and risk management segments increased by 15%, including an organic revenue increase of 8.4%.
Brokerage earnings in the third quarter are at $282.5 million, up from $253.6 million a year ago. In the nine months of 2022. In the nine months of 2022, the brokerage segment earned $1.058.5 million versus $845.6 million in the same period last year.
The risk management segment also saw earnings rise, at $26.9 million in Q3 2022 versus $22 million in Q3 2021. For the nine-month period, reported net earnings is at $79.4 million, compared to $64.9 million a year ago.
However, the corporate segment saw a net loss of $52.4 million for Q3, adding up to a net loss of $155.9 million for the nine-month period.
Chairman, president and CEO J. Patrick Gallagher, Jr. said the firm’s outstanding performance has continued during the third quarter. He said in a statement: “Our third quarter renewal premium data shows global premium increases approximate 10.5%, a bit higher than the renewal premium change in the first half of the year. Price increases are mostly consistent with recent quarters across nearly all lines of business.
“Client exposures, including favourable policy endorsements, continue to increase, and new arising claim counts moved higher year over year; these metrics are not reflective of an economic slowdown in our clients’ businesses.”
Commenting on the results, Simon Matson, EMEA CEO said: “Gallagher’s UK business had an extremely good Q3 delivering strong organic growth at 15%. This is a fantastic achievement driven by outstanding results across all our trading division.
“Our Specialty division has had a very strong quarter and is significantly ahead of last year. Our property & casualty, aerospace and construction practices all performed very well and throughout the year have maintained double digit organic growth during each quarter.”
Matson also said Gallagher Re UK is on track to deliver growth with priorities including strategic hires plus development of its existing talent, combined with continued investment in data and analytics.
“Integration of the wider division has been a priority and we now have all London-based colleagues together in one location which will deliver the best service for clients,” Matson added.