In the third quarter of 2022, Arthur J. Gallagher & Co. (Gallagher) earned $256.3 million, or $1.19 per share. This is an increase over the same period last year, when they earned $238.6 million, or $1.06 per share.
When certain factors were considered, the insurance and reinsurance broker’s adjusted earnings for the three months ending September 30 were $370,8 million, or $1.72 per share.
Gallagher’s total sales for the quarter were $2,012.0 million, a little less than the $2,105.6 million it made at the same time last year. However, total revenue for the brokerage and risk management segments increased by 15%, with organic revenue increasing by 8.4%.
Brokerages earned $282.5 million in the third quarter, up from $253.6 million the previous year. In 2022, the first three quarters. The brokerage segment earned $1,058.5 million in the first nine months of 2022, up from $845.6 million the previous year.
The risk management segment’s revenue increased as well, rising from $22 million in Q3 2021 to $26.9 million in Q3 2022. The first-quarter net income is $79.4 million, up from $64.9 million at the same time last year.
The corporate segment, on the other hand, lost $52.4 million in the third quarter and $155.9 million in the nine-month period.
J. Patrick Gallagher, Jr., the company’s chairman, president, and CEO, stated that the company performed well in the third quarter. “Our third-quarter renewal premium data shows that global premium increases are about 10.5%, which is a bit more than the change in renewal premiums in the first half of the year,” he said in a statement. Price increases in almost every business are mostly the same as they have been in the last few quarters.
“Client exposures, including favorable policy endorsements, continue to rise, and the number of new claims has increased year over year; however, these figures do not indicate that our clients’ businesses are experiencing an economic slowdown.”
EMEA CEO Simon Matson commented on the results, saying, “Gallagher’s UK business had a very good third quarter, with strong organic growth of 15%, which was made possible by excellent results across all of our trading divisions.
“Our Specialty division had a strong quarter and is performing significantly better than at this time last year. Our property and casualty, aerospace, and construction practices all performed admirably this year, growing by more than 10% on their own.
Matson also stated that Gallagher Re UK is on track to grow, citing strategic hires, employee development, and continued investments in data and analytics as top priorities.
“Integrating the larger division has been a top priority, and now all of our London-based employees are in the same place, allowing us to provide the best service to our clients,” Matson said.