Following the release of Gallagher’s consolidated financial results, Simon Matson – chief executive of the global firm’s broking and underwriting businesses in Europe, Middle East, and Africa – has zeroed in on the company’s financials in the UK and Ireland.
As reported by Insurance Business, Gallagher’s net earnings in the third quarter amounted to US$283.2 million – an improvement from the same period in 2022.
Highlighting the UK and Ireland broking and underwriting numbers for Q3, Matson noted that all trading divisions delivered organic growth, contributing to the strong performance in the quarter.
In an emailed statement, he said: “Our specialty division achieved organic growth of 18%, which is similar to both previous quarters in 2023, and our UK & Ireland retail division achieved 7% organic, adding to the 11% in Q2. This growth was as a result of new business wins, strong retention of existing clients, and inflation driving an increase in insured values which is being reflected in premiums.
“Our specialty division goes from strength to strength, and year-to-date organic growth has been impressive. All the teams have played their part with standout performances from property & casualty, energy, and aerospace this year so far. Pricing competition varies, with certain classes seeing high levels of insurer appetite, notably in financial lines such as D&O (directors and officers), cyber, and professional liability.”
The CEO added that, in aggregate, rates continue to rise across Gallagher’s client base in the UK and Ireland, making it imperative in every negotiation to look for the best outcomes for clients.
Matson commented further: “From an M&A (mergers and acquisitions) perspective, we were very pleased to expand our personal lines proposition with the acquisition of Lifesure and its team of 50 people operating in the motor home, caravan, and park home space.
“Pen Underwriting continues to make excellent progress towards its goal of becoming a £1 billion GWP (gross written premium) underwriting and distribution business with more than a quarter of its business now emanating from overseas, having extended its geographic footprint beyond the UK earlier this year and established a platform for wider international expansion.”
Locally, the Gallagher-owned managing general agent is focussed on delivering organic growth and adding complementary capabilities.
Meanwhile, according to Matson, 300 hires have come on board the UK and Ireland operations over the last three months.
“Since the start of the year, nearly 1,000 new colleagues have joined our UK business,” he said. “We are in fantastic shape for our busy last quarter of the year, and the team remains focussed on doing a great job for our clients.”
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