“I believe we are very well positioned for the remainder of 2019.”
Those were the words of chairman, president, and chief executive J. Patrick Gallagher, Jr., when global insurance brokerage and risk management firm Arthur J. Gallagher & Co. (AJG) announced its financial results for the first quarter.
Here we bring you the numbers for the whole enterprise, as well as the figures broken down in terms of AJG’s brokerage, risk management, and corporate segments.
Overall, the Illinois-headquartered group posted $351.7 million in net earnings for the period – an increase from the $286 million reported in the first quarter of 2018. Diluted net earnings per share improved to $1.77 from last year’s $1.48.
Meanwhile EBITDAC (net earnings before interest, income taxes, depreciation, amortization, and the change in estimated acquisition earnout payables) for the quarter ended March 31 rose to $475.4 million from $379.8 million previously. Revenues before reimbursements reached $1.96 billion, an amount that’s also higher than the $1.8 billion recorded in the same period in 2018.
Per segment, here are the net earnings figures:
- Brokerage – $309.5 million, up from $239.2 million
- Risk management – $16.2 million, up from $15.9 million
- Corporate – $26million, down from $30.9 million
“We had a fantastic start to 2019 and the team delivered on all four of our operating priorities,” noted Gallagher. “During the first quarter of 2019, our core brokerage and risk management operations generated excellent total revenue growth, terrific organic revenue growth, outstanding margin expansion, and strong growth from our tuck-in M&A strategy.
“Most importantly, our unique culture is thriving around the world, demonstrated by our being selected as a World's Most Ethical Company for the eighth year in a row by the Ethisphere Institute.”