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, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Melbourne, Victoria-based Intelligent Communications Experiences. Terms of the transaction were not disclosed.

Intelligent Communications Experiences helps businesses in Australia develop and deliver digital employee communications. The Intelligent Communications Experiences team, led by Chris Cansfield, Steve Mann, Glyn Wallens and Kevin McDougall, will operate under the direction of Graham Campbell, head of Gallagher's employee benefits and HR consulting operations in Australia and New Zealand.

"Intelligent Communications Experiences brings us a talented consulting team and broadens our employee communications capabilities in Australia," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am very pleased to welcome Chris, Steve, Glyn, Kevin and their associates to Gallagher."

Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Investor Relations: Sara Walsh, CFA                 Media Relations: Paul Day
630-285-3593 / [email protected]               630-285-5946 / [email protected]

SOURCE Arthur J. Gallagher & Co.

Key Takeaways AJG is acquiring Winter & Co to expand Gallagher Bassett's marine claims and risk management capabilities.Winter & Co adds maritime law expertise serving P&I clubs, marine insurers, shipowners and charterers.AJG gains a stronger London and EMEA presence while supporting its acquisition-led Risk Management growth. Arthur J. Gallagher & Co. (AJG - Free Report) is expanding its specialty risk management capabilities by acquiring Winter & Co Solicitors LLP, a London-based maritime law firm. Financial terms were not disclosed.

Winter & Co specializes in maritime law and serves P&I clubs, marine insurers, shipowners and charterers. Its expertise will complement Gallagher Bassett's existing marine claims and risk management operations.

The acquisition falls under Gallagher Bassett, part of AJG's Risk Management segment, which reported 16% revenue growth in the second quarter of 2026, while fees increased to $445 million from $383 million. Management attributed the performance to strong new business and client retention, as customers increasingly seek broader risk-management solutions.

The deal also strengthens Gallagher Bassett’s presence in London and the broader Europe, Middle East and Asia market, allowing AJG to add specialized maritime expertise without having to build the capability internally. This aligns with AJG’s broader strategy of using acquisitions to deepen expertise and expand its service offerings across specialized markets.

Financially, Winter & Co is unlikely to materially affect near-term results given the undisclosed transaction terms and its specialist profile. However, the added capability could expand the services Gallagher Bassett offers to marine clients and create opportunities to generate additional fee revenues from claims, legal and risk management services.

Overall, the acquisition adds another niche capability to AJG’s growing fee-based Risk Management platform, supports its acquisition-led growth strategy, while potentially strengthening client relationships and incremental earnings over time.

What About Its Peers?Marsh McLennan Companies, Inc. (MRSH - Free Report) has strengthened its marine insurance capabilities through specialized acquisitions. In February 2026, Marsh McLennan Agency (MMA) acquired Robinson & Son, a specialist in marine insurance and maritime risks. The deal expands MMA’s expertise in serving complex maritime clients and reflects the broker’s strategy of using targeted acquisitions to add niche capabilities.

Aon plc (AON - Free Report) has strengthened its marine insurance capabilities through targeted acquisitions. In 2022, Aon acquired Germany-based Karl Köllner, a specialist broker with expertise in Marine Hull and Cargo coverage. The deal expanded Aon’s capabilities across the shipping, transport and logistics sectors while strengthening its specialist marine insurance platform.

AJG’s Price PerformanceShares of AJG have dropped 26.5% in a year compared with the industry’s decline of 26.6%.

Image Source: Zacks Investment Research

AJG’s ValuationFrom a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 15.67X, higher than the industry average of 13.95X.

 

Image Source: Zacks Investment Research

AJG’s Growth EstimatesThe consensus estimate for earnings per share (EPS) for 2026 and 2027 indicates a year-over-year increase of 24.2% and 12.2%, respectively.

The Zacks Consensus Estimate for 2026 and 2027 earnings moved 0.1% and 0.1% south, respectively, in the last 30 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.

AJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arthur J. Gallagher & Co. NYSE: AJG said its diversified brokerage, benefits, reinsurance and claims-management operations continue to support growth despite easing property insurance pricing, with the company projecting approximately 6% organic growth in the third quarter.

Chairman and Chief Executive Officer J. Patrick Gallagher Jr. said pricing remains only one component of the company’s growth model. He pointed to strong retention, new-business activity, client exposure growth and the breadth of Gallagher’s operations as additional drivers.

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“Our growth is not tied to one product, one geography, or one market condition,” Gallagher said. He said clients are using savings from lower property premiums to increase coverage limits, buy back coverage and improve program structures.

Property Pricing Eases While Casualty Remains Firm Gallagher described global property and casualty insurance markets as segmented. Property-market conditions are easing as capacity returns, while casualty pricing remains firmer because of loss-cost pressures and underwriting-margin requirements.

Across the company’s property and casualty brokerage businesses during July and August, property renewal premiums declined 6%, while casualty premiums rose 5%. General liability increased 2%, commercial auto rose 4% and umbrella coverage increased 7%. Professional lines, including directors and officers liability and cyber coverage, increased 2%.

Mike Pesch, CEO of Global Brokerage for the Americas, said U.S. retail property renewal premiums declined about 7% in July and August, compared with a 12% decline in the second quarter. He attributed the improvement primarily to renewal timing and business mix rather than a fundamental shift in the property-rate environment.

Excluding property, U.S. retail renewal premium changes were up approximately 4%, including a 7% increase in casualty. Pesch said carriers remain rational, with better-performing accounts receiving premium relief and accounts with weaker loss experience facing higher increases.

During the question-and-answer session, Chief Financial Officer Doug Howell said property represents about 30% of Gallagher’s commission base. About 40% of property revenue comes from large accounts, 40% from middle-market accounts and 20% from small accounts, excluding AssuredPartners. He noted that many large property schedules are fee-based, limiting the direct relationship between changes in premium rates and Gallagher’s revenue.

Business Leaders Detail Growth Opportunities The company said its Americas retail and specialty operations produced approximately $3.5 billion of revenue in 2025. Including AssuredPartners and Woodruff Sawyer, pro forma revenue would have exceeded $5 billion, according to Pesch. The Americas specialty operation, including Risk Placement Services, affinity products, risk pools, alternative risk and captive management, has more than $2 billion of annualized run-rate revenue with AssuredPartners.

Patrick Gallagher, the company’s chief operating officer, said international retail operations in the U.K., EMEA, Australia and New Zealand generate about $1.6 billion of annual revenue. London specialty generates more than $700 million of annual revenue and places more than $6 billion in premiums annually.

International retail pricing remained competitive, he said. U.K. and Australian renewal premiums were each up about 1%, while New Zealand renewal premiums were down 4%, led by a 6% decline in property. He said London specialty faces ample capacity and intense competition in several lines, though geopolitical developments have increased marine war-risk pricing and, to a lesser extent, aviation pricing in some areas.

Tom Gallagher, president of the company, said Gallagher Re has grown to become the world’s third-largest reinsurance broker, with more than $1 billion in revenue. The business delivered 14% organic growth in 2025, and momentum has continued in 2026, he said. Gallagher Re is seeing price moderation in property and many specialty markets but continued attention to loss trends and program structure in casualty.

In employee benefits, CEO Bill Ziebell said employers are facing higher medical and pharmacy expenses. Fully insured renewals among Gallagher’s largest carrier relationships are running at increases of 15% to 20%, while stop-loss increases are averaging 20% or more. Underlying medical trends for self-funded plans are increasing 10% to 11%, he said.

Gallagher Benefit Services generated around $2.5 billion of annual revenue at the end of 2025 and has more than $3 billion of annualized run-rate revenue following the AssuredPartners acquisition.

Risk Management Raises Organic Growth Outlook Scott Hudson, president and CEO of Risk Management Services, said Gallagher Bassett generated approximately $1.6 billion of revenue in 2025 and closed more than 1 million property and casualty claims while paying about $18 billion in losses for clients. The third-party claims administrator does not take underwriting risk.

Gallagher Bassett reported 12% organic growth and a 22.3% EBITDAC margin in the second quarter. Hudson raised the segment’s third-quarter organic growth expectation to approximately 10%, with growth potentially near that level for the full year. The company expects risk management EBITDAC margins of about 22% for both the third quarter and full year 2026.

Hudson said claims-frequency trends have remained consistent, while liability-claim severity continues to face upward pressure. Gallagher Bassett is using artificial intelligence tools for severity prediction, fraud detection, litigation prevention and claims summaries. A fraud-detection model identified more than $100 million in potential savings for one client, he said.

M&A Pipeline, AssuredPartners Integration and AI Gallagher said it completed 21 mergers so far this year, representing about $225 million of estimated annualized revenue. Its pipeline includes more than 30 signed or pending term sheets representing roughly $400 million of annualized revenue.

Management said the AssuredPartners integration is on plan and that the acquired business is performing better than expected. Howell said Gallagher continues to expect approximately $325 million of annualized run-rate synergies by early 2028, above the $160 million initially estimated when the transaction was announced in December 2024.

Howell said Gallagher has close to $10 billion of capacity for acquisitions over the next two years before issuing stock, including expected free cash flow and potential investment-grade borrowing. The company repurchased about $480 million of shares through the second quarter.

Gallagher is also expanding the use of AI across workflows, including policy checking, quote extraction, submission quality, market matching and claims processing. Howell said the company sees potential savings over several years of about 5% in producer and field-sales costs, 10% to 15% in service-layer costs and 20% to 30% in back-office costs. The company expects to reinvest about one-third of those savings, with margin benefits expected to emerge over the next three to five years.

For the third quarter, Howell said Gallagher expects about 5% organic growth in brokerage and double-digit organic growth in risk management, resulting in companywide organic growth of approximately 6%.

About Arthur J. Gallagher & Co. (NYSE:AJG)Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The company helps businesses, institutions and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, risk management, claims administration, actuarial services, captive insurance and wholesale brokerage. Gallagher arranges commercial property and casualty coverage, personal insurance, specialty insurance and employee benefit programs, while also providing services designed to help clients manage workplace, liability and other operational risks.

Founded in 1927 by Arthur J.

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Key Takeaways AJG acquired Innovise to expand its commercial insurance brokerage and surety capabilities.Innovise serves construction, energy, real estate and manufacturing clients, broadening Gallagher's reach.AJG's Brokerage and Risk Management segments grew 24% in Q2, including 6% organic growth. Arthur J. Gallagher & Co. (AJG - Free Report) is strengthening its commercial insurance brokerage operations by acquiring McMillan Insurance & Bonding, doing business as Innovise Business Consultants. The acquired business specializes in commercial insurance brokerage and surety, serving clients across construction, energy, real estate and manufacturing.

The deal could support AJG’s growth by expanding its presence in specialized commercial insurance markets. Innovise’s expertise in surety and industry-specific risks can help Gallagher address more complex coverage needs and deepen relationships with commercial clients.

The acquisition also provides opportunities to cross-sell Gallagher’s broader insurance, risk management and consulting solutions to Innovise’s client base. This could create additional revenue opportunities while deepening Gallagher’s relationships with commercial clients.

The move aligns with Gallagher’s acquisition-driven expansion strategy. Acquisitions remain a second important pillar of AJG's two-pronged growth strategy alongside organic growth. The company has consistently used acquisitions to broaden its geographic reach, add specialized capabilities and complement organic growth. In the second quarter, the company’s Brokerage and Risk Management segments delivered 24% revenue growth, including 6% organic growth, showing the contribution of both acquisitions and underlying business expansion.

Expanding across specialized industries could further diversify Gallagher’s commercial client base and strengthen its brokerage platform. However, successful integration and cross-selling will be important to supporting Gallagher’s brokerage growth.

What About Its Peers?Marsh & McLennan Companies, Inc. (MRSH - Free Report) continues to expand its brokerage capabilities through acquisitions. In August 2026, Marsh McLennan Agency agreed to acquire Accel Holdings, adding commercial and personal insurance, employee benefits and agribusiness capabilities. Its diversified platform provides exposure to both insurance and advisory services.

Brown & Brown, Inc. (BRO - Free Report) is also expanding through acquisitions. In February 2026, it acquired American Adventure Insurance, adding dealership-focused insurance and F&I capabilities. In September 2026, BRO acquired MacKay Corporate Insurance Brokers, strengthening its commercial insurance capabilities across construction, property, professional services, charities and oil & gas.

AJG’s Price PerformanceShares of AJG have dropped 18.6% in a year compared with the industry’s decline of 18%.

Image Source: Zacks Investment Research

AJG’s ValuationFrom a valuation standpoint, AJG trades at a forward price-to-earnings ratio of 16.72X, higher than the industry average of 15.08X.

Image Source: Zacks Investment Research

AJG’s Growth EstimatesThe consensus estimate for earnings per share (EPS) for 2026 and 2027 indicates a year-over-year increase of 24.2% and 12.2%, respectively.

The Zacks Consensus Estimates for 2026 and 2027 earnings moved 0.1% and 0.1% north, respectively, in the last 30 days.

Image Source: Zacks Investment Research

The Zacks Consensus Estimates for AJG’s 2026 and 2027 revenues indicate a year-over-year increase.

AJG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HB Wealth Management LLC boosted its holdings in shares of Arthur J. Gallagher & Co. (NYSE:AJG – Free Report) by 25.4% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 12,157 shares of the financial services provider’s stock after buying an additional 2,465 shares during the quarter. HB Wealth Management LLC’s holdings in Arthur J. Gallagher & Co. were worth $2,791,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in the business. Kemnay Advisory Services Inc. acquired a new stake in shares of Arthur J. Gallagher & Co. in the fourth quarter worth $26,000. Rakuten Securities Inc. lifted its position in Arthur J. Gallagher & Co. by 650.0% during the second quarter. Rakuten Securities Inc. now owns 105 shares of the financial services provider’s stock valued at $34,000 after purchasing an additional 91 shares during the period. Axiom Investment Management LLC purchased a new stake in Arthur J. Gallagher & Co. in the first quarter valued at $28,000. MV Capital Management Inc. purchased a new stake in Arthur J. Gallagher & Co. in the fourth quarter valued at $34,000. Finally, Cassaday & Co Wealth Management LLC acquired a new stake in Arthur J. Gallagher & Co. during the 1st quarter worth about $29,000. 85.53% of the stock is owned by hedge funds and other institutional investors.

Insider Activity In related news, VP Christopher E. Mead sold 3,500 shares of Arthur J. Gallagher & Co. stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $257.02, for a total value of $899,570.00. Following the sale, the vice president owned 22,223 shares of the company’s stock, valued at approximately $5,711,755.46. This trade represents a 13.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Scott R. Hudson sold 12,000 shares of the business’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $264.13, for a total transaction of $3,169,560.00. Following the completion of the sale, the vice president directly owned 90,262 shares of the company’s stock, valued at approximately $23,840,902.06. The trade was a 11.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 27,500 shares of company stock worth $7,310,090 over the last three months. 1.40% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes A number of equities analysts have weighed in on AJG shares. Argus lifted their price objective on Arthur J. Gallagher & Co. from $267.00 to $300.00 and gave the company a “buy” rating in a research note on Monday, August 17th. Mizuho raised their target price on Arthur J. Gallagher & Co. from $287.00 to $300.00 and gave the stock an “outperform” rating in a report on Friday, July 31st. Morgan Stanley lifted their price target on Arthur J. Gallagher & Co. from $270.00 to $290.00 and gave the company an “overweight” rating in a research report on Wednesday, August 19th. Citigroup boosted their price target on Arthur J. Gallagher & Co. from $250.00 to $285.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. Finally, Royal Bank Of Canada upped their price objective on Arthur J. Gallagher & Co. from $300.00 to $310.00 and gave the stock an “outperform” rating in a research report on Friday, July 31st. Fourteen research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Arthur J. Gallagher & Co. presently has a consensus rating of “Moderate Buy” and a consensus target price of $290.28. Get Our Latest Analysis on AJG

Arthur J. Gallagher & Co. Trading Down 4.3% Shares of Arthur J. Gallagher & Co. stock opened at $251.47 on Wednesday. The firm has a 50-day simple moving average of $255.31 and a two-hundred day simple moving average of $228.39. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.05 and a current ratio of 1.05. Arthur J. Gallagher & Co. has a fifty-two week low of $190.75 and a fifty-two week high of $313.55. The company has a market cap of $64.45 billion, a P/E ratio of 41.70, a price-to-earnings-growth ratio of 1.59 and a beta of 0.50.

Arthur J. Gallagher & Co. (NYSE:AJG – Get Free Report) last posted its earnings results on Thursday, July 30th. The financial services provider reported $2.84 EPS for the quarter, beating analysts’ consensus estimates of $2.81 by $0.03. Arthur J. Gallagher & Co. had a return on equity of 13.28% and a net margin of 9.96%.The firm had revenue of $3.95 billion for the quarter, compared to analysts’ expectations of $4.01 billion. During the same period last year, the firm earned $2.33 EPS. The company’s quarterly revenue was up 24.3% on a year-over-year basis. As a group, equities analysts predict that Arthur J. Gallagher & Co. will post 13.28 earnings per share for the current fiscal year.

Arthur J. Gallagher & Co. Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th will be issued a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Tuesday, September 8th. Arthur J. Gallagher & Co.’s dividend payout ratio (DPR) is presently 46.43%.

Arthur J. Gallagher & Co. Company Profile (Free Report)

Arthur J. Gallagher & Co is a global insurance brokerage, risk management and consulting company. The company helps businesses, institutions and individuals identify, manage and transfer risk through insurance and related services.

Its operations include retail insurance brokerage, employee benefits consulting, risk management, claims administration, actuarial services, captive insurance and wholesale brokerage. Gallagher arranges commercial property and casualty coverage, personal insurance, specialty insurance and employee benefit programs, while also providing services designed to help clients manage workplace, liability and other operational risks.

Founded in 1927 by Arthur J.

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Key Takeaways AJG expects 6% total-company organic growth in 2026, led by new business and client retention. New business, exposure growth and diverse offerings support organic growth across Gallagher's businesses. AJG posted its 25th straight quarter of double-digit adjusted EBITDAC growth amid margin expansion. Arthur J. Gallagher & Co. (AJG - Free Report) appears well positioned to sustain around 6% organic growth and continue expanding underlying margins even as insurance pricing moderates. However, the mix of growth is likely to shift away from rate-driven growth toward new business, client retention, exposure growth, productivity and acquisitions.

AJG witnessed another solid quarter of organic growth across each business and geography. AJG projects a total company organic outlook of 6%, brokerage at 5.5% and risk management at 9% for 2026. AJG expects 2026 will be another year of excellent organic growth.
For the combined Brokerage and Risk Management segments, growing both organically and through acquisitions delivered total revenue growth of 24% in the second quarter of 2026. Organic growth was 6%, reflecting continued strength across each of the businesses.

The bigger drivers of Organic growth remain new business, strong client retention, exposure growth and the diversity of the model across P/C, benefits, reinsurance and claims. AJG is also gaining from activity across construction, infrastructure, energy and data centers. These areas create new, more complex client needs, requiring more advice, broader capabilities and deeper expertise, which play directly into Arthur J. Gallagher's advisory strengths.

Arthur J. Gallagher recorded its 25th consecutive quarter of double-digit adjusted EBITDAC growth, while management highlighted continued underlying margin expansion. Productivity and quality improvement are among AJG's four long-term strategic pillars. 
The acquisition of AssuredPartners is now nearly a year into integration, with management reporting strong retention and good collaboration between teams. As integration progresses, cost synergies and greater scale could support margins.

What About Its Peers?Brown & Brown, Inc. (BRO - Free Report) experienced a moderation in organic growth in the second quarter of 2026, reflecting a softer insurance pricing environment and weakness in its Specialty Distribution business. Organic revenues declined 0.7% year over year, while organic revenues, including contingent commissions, increased 0.7%. Despite the near-term pressure, BRO expects organic growth to improve in the second half of 2026, with management targeting 1.5-2.5% growth in Retail and 2-4% in Specialty Distribution, excluding contingents.

Willis Towers Watson Public Limited Company (WTW - Free Report) delivered 5% organic revenue growth in the second quarter of 2026, supported by broad-based momentum across its businesses. WTW achieved this growth despite a competitive insurance pricing environment, with rates declining across most lines. The company's specialization, recurring revenue streams, new-business wins and strong client retention should help sustain mid-single-digit organic growth, while operating leverage and expense discipline provide further support for profitability.

AJG’s Price PerformanceShares of Arthur J. Gallagher have gained 1.9% year to date against the industry’s decline of 1.2%.

Image Source: Zacks Investment Research

AJG’s OvervaluationThe stock is overvalued compared with its industry. It is currently trading at a price-to-earnings multiple of 18.43, higher than the industry average of 16.83.

Image Source: Zacks Investment Research

Estimate Movement for AJGThe Zacks Consensus Estimate for AJG’s third-quarter 2026 and fourth-quarter 2026 EPS has moved up 1.3% and 0.3%, respectively, in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 0.3% and 0.5%, respectively, in the past 30 days.

The consensus estimate for AJG’s 2026 and 2027 EPS and revenues indicates year-over-year increases.

Image Source: Zacks Investment Research

AJG stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arthur J. Gallagher & Co. (AJG) Q2 2026 Earnings Call July 30, 2026 5:15 PM EDT

Company Participants

J. Gallagher - Chairman & CEO
Douglas Howell - Corporate VP & CFO

Conference Call Participants

Michael Zaremski - BMO Capital Markets Equity Research
Elyse Greenspan - Wells Fargo Securities, LLC, Research Division
Charles Peters - Raymond James & Associates, Inc., Research Division
Dean Criscitiello - Wolfe Research, LLC
David Motemaden - Evercore ISI Institutional Equities, Research Division
Andrew Andersen - Jefferies LLC, Research Division
Yaron Kinar - Mizuho Securities USA LLC, Research Division
Mark Hughes - Truist Securities, Inc., Research Division
Meyer Shields - Keefe, Bruyette, & Woods, Inc., Research Division
Andrew Kligerman - TD Cowen, Research Division

Presentation

Operator

Good afternoon, and welcome to Arthur J. Gallagher & Company's Second Quarter 2026 Earnings Conference Call.

[Operator Instructions]

Today's call is being recorded. If you have any objections, you may disconnect at this time.

Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meaning of the securities laws. The company does not assume any obligation to update information or forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that can cause actual results to differ materially. Please refer to the information concerning forward-looking statements and Risk Factors sections contained in the company's most recent 10-K, 10-Q and 8-K filings for more details on such risks and uncertainties.

In addition, for reconciliations of the non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the company's website.

It is now my pleasure to introduce J. Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Company. Mr. Gallagher, you may begin.

, /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended June 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9.

Summary of Financial Results - Second Quarter

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

2nd Q 26

2nd Q 25

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$  3,502

$  2,787

$    450

$    510

$    948

$    892

$    1.74

$    1.95

Net (gains) on divestitures

(8)

(6)

(6)

(5)

(8)

(6)

(0.02)

(0.02)

Acquisition integration

—

—

84

30

113

41

0.33

0.12

Workforce and lease termination

—

—

30

28

40

37

0.11

0.11

Acquisition related adjustments

—

—

49

25

70

50

0.19

0.09

Amortization of intangible assets

—

—

218

130

—

—

0.84

0.50

Levelized foreign currency translation

–

1

—

(7)

—

(9)

—

(0.03)

Brokerage, as adjusted

3,494

2,782

825

711

1,163

1,005

3.19

2.72

Risk Management, as reported

453

392

57

43

96

75

0.22

0.16

Acquisition integration

—

—

1

1

1

2

–

0.01

Workforce and lease termination

—

—

1

3

2

4

0.01

0.01

Acquisition related adjustments

—

—

2

1

2

1

0.01

—

Amortization of intangible assets

—

—

5

5

—

—

0.02

0.02

Levelized foreign currency translation

—

5

—

1

—

1

—

—

Risk Management, as adjusted

453

397

66

54

101

83

0.26

0.20

Corporate, as reported

—

—

(183)

(185)

(98)

(111)

(0.71)

(0.71)

Transaction-related costs

—

—

10

24

12

29

0.04

0.09

Legal, tax and benefit plan related

—

—

16

—

21

—

0.06

—

Corporate, as adjusted

—

—

(157)

(161)

(65)

(82)

(0.61)

(0.62)

Total Company, as reported

$  3,955

$  3,179

$    324

$    368

$     946

$     856

$    1.25

$    1.40

Total Company, as adjusted

$  3,947

$  3,179

$    734

$    604

$  1,199

$  1,006

$    2.84

$    2.30

Total Brokerage & Risk Management, as reported

$  3,955

$  3,179

$    507

$    553

$  1,044

$     967

$    1.96

$    2.11

Total Brokerage & Risk Management, as adjusted

$  3,947

$  3,179

$    891

$    765

$  1,264

$  1,088

$    3.45

$    2.92

For second quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $144 million of incremental interest income, or approximately 42 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.

For second quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $505 million, $12 million and $33 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $130 million, $3 million and ($7) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 17.

(1 of 20)

"We delivered an excellent second quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "Our combined Brokerage and Risk Management segments delivered revenue growth of 24%, including organic growth of 6%. Our growth reflects the strength and diversity of our model, the continued power of our two-pronged growth strategy, and our culture of client-first execution. Client retention remains strong, new business generation continues to be outstanding and clients continue to seek broader solutions across our platform.

"In an increasingly complex risk environment, client demand for our advice, analytics, market access, specialty expertise and claims advocacy remains robust. Looking ahead, we remain confident in our ability to build on our momentum and continue creating long-term value for our clients, colleagues and shareholders."

Summary of Financial Results - Six-Months ended June 30

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

6 Mths 26

6 Mths 25

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$  7,795

$  6,101

$  1,363

$  1,326

$  2,510

$  2,243

$    5.25

$    5.08

Net (gains) on divestitures

(15)

(12)

(11)

(9)

(15)

(12)

(0.04)

(0.04)

Acquisition integration

—

—

149

63

200

85

0.57

0.24

Workforce and lease termination

—

—

50

42

67

55

0.19

0.16

Acquisition related adjustments

—

—

88

50

120

80

0.34

0.19

Amortization of intangible assets

—

—

419

282

—

—

1.62

1.09

Effective income tax rate impact

—

—

—

1

—

—

—

—

Levelized foreign currency translation

—

58

—

6

—

10

—

0.03

Brokerage, as adjusted

7,780

6,147

2,058

1,761

2,882

2,461

7.93

6.75

Risk Management, as reported

881

766

107

84

182

147

0.41

0.32

Acquisition integration

—

—

2

2

2

4

0.01

0.01

Workforce and lease termination

—

—

2

6

3

7

0.01

0.02

Acquisition related adjustments

—

—

6

1

8

1

0.02

—

Amortization of intangible assets

—

—

10

9

—

—

0.04

0.04

Levelized foreign currency translation

—

12

—

2

—

2

—

0.01

Risk Management, as adjusted

881

778

127

104

195

161

0.49

0.40

Corporate, as reported

(5)

—

(323)

(333)

(189)

(233)

(1.25)

(1.28)

Transaction-related costs

—

—

16

44

19

52

0.06

0.17

Legal, tax and benefit plan related

—

—

17

—

39

—

0.07

—

Clean energy-related

5

—

3

—

5

—

0.01

—

Corporate, as adjusted

—

—

(287)

(289)

(126)

(181)

(1.11)

(1.11)

Total Company, as reported

$  8,671

$  6,867

$  1,147

$  1,077

$  2,503

$  2,157

$    4.41

$    4.12

Total Company, as adjusted

$  8,661

$  6,925

$  1,898

$  1,576

$  2,951

$  2,441

$    7.31

$    6.04

Total Brokerage & Risk Management, as reported

$  8,676

$  6,867

$  1,470

$  1,410

$  2,692

$  2,390

$    5.66

$    5.40

Total Brokerage & Risk Management, as adjusted

$  8,661

$  6,925

$  2,185

$  1,865

$  3,077

$  2,622

$    8.42

$    7.15

For the six-month period ended June 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $936 million, $27 million and $63 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $241 million, $7 million and ($27) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 19.

(2 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Organic Revenues (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Base Commissions and Fees

Commissions and fees, as reported

$      3,180

$         2,387

$      7,095

$         5,256

Less commissions and fees from acquisitions, divested operations and other

(775)

(80)

(1,712)

(144)

Levelized foreign currency translation

—

1

—

51

Organic base commissions and fees

$      2,405

$         2,306

$      5,383

$         5,163

Organic change in base commissions and fees

4 %

4 %

Supplemental Revenues

Supplemental revenues, as reported

$        141

$           103

$        321

$           217

Less supplemental revenues from acquisitions, divested operations and other

(17)

—

(63)

—

Levelized foreign currency translation

—

—

—

2

Organic supplemental revenues

$        124

$           103

$        258

$           219

Organic change in supplemental revenues

20 %

18 %

Contingent Revenues

Contingent revenues, as reported

$          91

$            73

$        206

$           166

Less contingent revenues from acquisitions, divested operations and other

(24)

—

(43)

—

Levelized foreign currency translation

—

—

—

1

Organic contingent revenues

$          67

$            73

$        163

$           167

Organic change in contingent revenues

(8 %)

(2 %)

Total reported commissions, fees, supplemental revenues and contingent revenues

$      3,412

$         2,563

$      7,622

$         5,639

Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other

(816)

(80)

(1,818)

(144)

Levelized foreign currency translation

—

1

—

54

Total organic commissions, fees, supplemental revenues and contingent revenues

$      2,596

$         2,482

$      5,804

$         5,549

Total organic change

5 %

5 %

Acquisition Activity

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Number of acquisitions closed *

6

9

14

19

Estimated annualized revenues acquired (in millions)

$           58

$         291

$         107

$         354

*

In the second quarter of 2026 and 2025, no shares of Gallagher common stock were issued directly to sellers in connection with tax-free exchange acquisitions.

(3 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Compensation Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Compensation expense, as reported

$     2,017

$     1,526

$     4,228

$     3,143

Acquisition integration

(53)

(20)

(90)

(48)

Workforce and lease termination related charges

(29)

(36)

(53)

(52)

Acquisition related adjustments

(70)

(50)

(120)

(80)

Levelized foreign currency translation

—

8

—

37

Compensation expense, as adjusted

$     1,865

$     1,428

$     3,965

$     3,000

Reported compensation expense ratios using reported revenues on pages 1 and 2

*

57.6 %

54.8 %

54.2 %

51.5 %

Adjusted compensation expense ratios using adjusted revenues on pages 1 and 2

**

53.4 %

51.3 %

51.0 %

48.8 %

*

Reported second quarter 2026 compensation expense ratio was 2.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher integration costs, partially offset by lower workforce termination costs and savings from headcount controls.

**

Adjusted second quarter 2026 compensation expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio also benefited from savings from headcount controls.

Operating Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Operating expense, as reported

$       537

$       369

$     1,057

$       715

Acquisition integration

(60)

(21)

(110)

(37)

Workforce and lease termination related charges

(11)

(1)

(14)

(3)

Levelized foreign currency translation

—

2

—

11

Operating expense, as adjusted

$       466

$       349

$       933

$       686

Reported operating expense ratios using reported revenues on pages 1 and 2

*

15.3 %

13.2 %

13.6 %

11.7 %

Adjusted operating expense ratios using adjusted revenues on pages 1 and 2

**

13.3 %

12.5 %

12.0 %

11.2 %

*

Reported second quarter 2026 operating expense ratio was 2.1 pts higher than second quarter 2025. This ratio was primarily impacted by higher integration and technology costs. This ratio was also impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.

**

Adjusted second quarter 2026 operating expense ratio was 0.8 pts higher than second quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This ratio was also impacted by higher technology costs.

(4 of 20)

Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Net earnings, as reported

$       450

$       510

$     1,363

$     1,326

Provision for income taxes

154

176

467

459

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

EBITDAC

948

892

2,510

2,243

Net (gains) on divestitures

(8)

(6)

(15)

(12)

Acquisition integration

113

41

200

85

Workforce and lease termination related charges

40

37

67

55

Acquisition related adjustments

70

50

120

80

Levelized foreign currency translation

—

(9)

—

10

EBITDAC, as adjusted

$     1,163

$     1,005

$     2,882

$     2,461

Net earnings margin, as reported using reported revenues on pages 1 and 2

12.9 %

18.3 %

17.5 %

21.7 %

EBITDAC margin, as adjusted using adjusted revenues on pages 1 and 2

*

33.3 %

36.1 %

**

37.0 %

40.0 %

*

Second quarter 2025 adjusted EBITDAC includes approximately $144 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in second quarter adjusted EBITDAC margin by approximately 3.9%.

**

Adjusted EBITDAC for the six-month period ended June 30, 2025 includes approximately $287 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior year, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in adjusted EBITDAC margin for the six-month period ended June 30, by approximately 3.4%.

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Organic Revenues (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Fees

$        438

$           382

$        853

$           745

International performance bonus fees

7

1

12

3

Fees as reported

445

383

865

748

Less fees from acquisitions, divestitures and other

(11)

(1)

(24)

(2)

Levelized foreign currency translation

—

5

—

12

Organic fees

$        434

$           387

$        841

$           758

Organic change in fees

12 %

11 %

Acquisition Activity

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Number of acquisitions closed

1

—

2

1

Estimated annualized revenues acquired (in millions)

$              5

$            —

$            15

$            38

 (5 of 20)

Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

Compensation Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Compensation expense, as reported

$       274

$       244

$       538

$       475

Acquisition integration

—

(1)

—

(2)

Workforce and lease termination related charges

(2)

(3)

(3)

(6)

Acquisition related adjustments

(2)

(1)

(8)

(1)

Levelized foreign currency translation

—

4

—

9

Compensation expense, as adjusted

$       270

$       243

$       527

$       475

Reported compensation expense ratios using reported revenues
  (before reimbursements) on pages 1 and 2

*

60.5 %

62.2 %

61.1 %

62.0 %

Adjusted compensation expense ratios using adjusted revenues
  (before reimbursements) on pages 1 and 2

*

59.6 %

61.2 %

59.8 %

61.1 %

*

Reported and adjusted second quarter 2026 compensation expense ratios were 1.7 pts and 1.6 pts lower, respectively,  than second quarter 2025. Both ratios were primarily impacted by savings related to headcount controls.

Operating Expense and Ratios

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Operating expense, as reported

$         83

$         73

$       161

$       144

Acquisition integration

(1)

(1)

(2)

(2)

Workforce and lease termination related charges

—

(1)

—

(1)

Levelized foreign currency translation

—

—

—

1

Operating expense, as adjusted

$         82

$         71

$       159

$       142

Reported operating expense ratios using reported revenues
  (before reimbursements) on pages 1 and 2

*

18.3 %

18.6 %

18.3 %

18.8 %

Adjusted operating expense ratios using adjusted revenues
  (before reimbursements) on pages 1 and 2

*

18.1 %

18.2 %

18.1 %

18.2 %

*

Reported and adjusted second quarter 2026 operating expense ratios were 0.3 pts and 0.1 pts lower, respectively, than second quarter 2025. Both ratios were primarily impacted by savings in client-related expenses.

Net Earnings to Adjusted EBITDAC (Non-GAAP)

2nd Q 26

2nd Q 25

6 Mths 26

6 Mths 25

Net earnings, as reported

$         57

$     43

$       107

$         84

Provision for income taxes

21

15

39

30

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

EBITDAC

96

75

182

147

Acquisition integration

1

2

2

4

Workforce and lease termination related charges

2

4

3

7

Acquisition related adjustments

2

1

8

1

Levelized foreign currency translation

—

1

—

2

EBITDAC, as adjusted

$       101

$     83

$       195

$       161

Net earnings margin, as reported using reported revenues
  (before reimbursements) on pages 1 and 2

12.6 %

11.0 %

12.2 %

11.0 %

EBITDAC margin, as adjusted using adjusted revenues
  (before reimbursements) on pages 1 and 2

22.3 %

20.9 %

22.1 %

20.7 %

(6 of 20)

Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

2nd Quarter

2026

2025

Pretax

Loss

Income

Tax

Benefit

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Pretax

Loss

Income

Tax

Benefit

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Components of Corporate Segment, as reported

Interest and banking costs

$         (169)

$    44

$        (125)

$         (159)

$    41

$        (118)

Clean energy-related

(2)

1

(1)

(2)

—

(2)

Acquisition costs (1)

(18)

3

(15)

(34)

6

(28)

Corporate (2)

(79)

37

(42)

(76)

39

(37)

Reported 2nd quarter

(268)

85

(183)

(271)

86

(185)

Adjustments

Transaction-related costs (1)

12

(2)

10

29

(5)

24

Legal and tax related (4)

13

(3)

10

—

—

—

Benefit plan related (5)

8

(2)

6

—

—

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(169)

44

(125)

(159)

41

(118)

Clean energy-related

(2)

1

(1)

(2)

—

(2)

Acquisition costs

(6)

1

(5)

(5)

1

(4)

Corporate (2)

(58)

32

(26)

(76)

39

(37)

Adjusted 2nd quarter

$         (235)

$    78

$        (157)

$         (242)

$    81

$        (161)

Six Months

Components of Corporate Segment, as reported

Interest and banking costs

$         (327)

$    85

$        (242)

$         (318)

$    83

$        (235)

Clean energy-related

(9)

3

(6)

(4)

1

(3)

Acquisition costs (1)

(28)

5

(23)

(60)

9

(51)

Corporate (2)

(155)

103

(52)

(171)

127

(44)

Reported six months

(519)

196

(323)

(553)

220

(333)

Adjustments

Clean energy-related (3)

5

(2)

3

—

—

—

Transaction-related costs (1)

19

(3)

16

52

(8)

44

Legal and tax related (4)

31

(20)

11

—

—

—

Benefit plan related (5)

8

(2)

6

—

—

—

Components of Corporate Segment, as adjusted

Interest and banking costs

(327)

85

(242)

(318)

83

(235)

Clean energy-related

(4)

1

(3)

(4)

1

(3)

Acquisition costs

(9)

2

(7)

(8)

1

(7)

Corporate (2)

(116)

81

(35)

(171)

127

(44)

Adjusted six months 

$         (456)

$  169

$        (287)

$         (501)

$  212

$        (289)

(1)

Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.

(2)

Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(25) million in second quarter 2025. There was no net impact of unrealized foreign exchange remeasurement in second quarter 2026. Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in the six-month period ended June 30, 2026 and a net unrealized foreign exchange remeasurement loss of $(48) million in the six-month period ended June 30, 2025.

(3)

Adjustments in the six-month period ended June 30, 2026 include the write-down of a clean energy-related investment.

(4)

Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with legal and tax matters.

(5)

Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

(7 of 20)

Interest, banking costs and debt - At June 30, 2026, Gallagher had $9,550 million of borrowings from public debt, $2,683 million of borrowings from private placements and $1,365 million of borrowings under its line of credit facility. In addition, Gallagher had $134 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.

Clean energy-related - For 2026, this consists of operating results related to Gallagher's investments in new clean energy projects, primarily fusion and carbon sequestration projects.

Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.

Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.

Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher's consolidated effective tax rates for the quarters ended June 30, 2026 and 2025 were 21.7% and 22.3%, respectively.

AssuredPartners - In fourth quarter 2024 and first quarter 2025, we raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion. 

Share Repurchases - In the second quarter of 2026, Gallagher repurchased approximately 0.9 million shares of its common stock for approximately $170 million.

Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

(8 of 20)

Information Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment.

Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs and trade disruptions; a recession or economic downturn; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions; risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in its history, including risks related to its ability to successfully integrate operations and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits of such acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively to its business and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape.

Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.

Information Regarding Non-GAAP Measures

In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.

(9 of 20)

Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 17, 18, 19 and 20 for a reconciliation of the adjustments made to income taxes.

Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable:

Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure. Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems. Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation. Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce. Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space. Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time we may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date. Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges. The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year. Effective income tax rate impact, which levelized the prior year for the change in current year tax rates. Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment. Legal and tax related, which represents the impact of adjustments in second quarter 2026 related to costs associated with legal and tax matters. Benefit plan related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes. Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

(10 of 20)

Non-GAAP Earnings Measures

EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis. EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, (and for the Corporate segment, the clean energy related adjustments described above) and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation.

These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments).

(11 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except per share, percentage and workforce data)

Brokerage Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$         2,442

$         1,808

$         5,565

$         4,057

Fees

738

579

1,530

1,199

Supplemental revenues

141

103

321

217

Contingent revenues

91

73

206

166

Interest income, premium finance revenues and other income

90

224

173

462

Total revenues

3,502

2,787

7,795

6,101

Compensation

2,017

1,526

4,228

3,143

Operating

537

369

1,057

715

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

Expenses

2,898

2,101

5,965

4,316

Earnings before income taxes

604

686

1,830

1,785

Provision for income taxes

154

176

467

459

Net earnings

450

510

1,363

1,326

Net earnings attributable to noncontrolling interests

—

—

1

5

Net earnings attributable to controlling interests

$           450

$           510

$         1,362

$         1,321

EBITDAC

Net earnings

$           450

$           510

$         1,363

$         1,326

Provision for income taxes

154

176

467

459

Depreciation

45

38

94

71

Amortization

294

174

565

378

Change in estimated acquisition earnout payables

5

(6)

21

9

EBITDAC

$           948

$           892

$         2,510

$         2,243

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(12 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except per share, percentage and workforce data)

Risk Management Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Fees

$           445

$           383

$           865

$           748

Interest income and other income

8

9

16

18

Revenues before reimbursements

453

392

881

766

Reimbursements

48

43

90

82

Total revenues

501

435

971

848

Compensation

274

244

538

475

Operating

83

73

161

144

Reimbursements

48

43

90

82

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

Expenses

423

377

825

734

Earnings before income taxes

78

58

146

114

Provision for income taxes

21

15

39

30

Net earnings

57

43

107

84

Net earnings attributable to noncontrolling interests

—

—

—

—

Net earnings attributable to controlling interests

$            57

$            43

$           107

$            84

EBITDAC

Net earnings

$            57

$            43

$           107

$            84

Provision for income taxes

21

15

39

30

Depreciation

10

10

20

20

Amortization

7

6

14

12

Change in estimated acquisition earnout payables

1

1

2

1

EBITDAC

$            96

$            75

$           182

$           147

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(13 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)

Corporate Segment

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Other loss

$            —

$             —

$             (5)

$             —

Total revenues

—

—

(5)

—

Compensation

39

34

80

83

Operating

59

77

104

150

Interest

168

158

326

316

Depreciation

2

2

4

4

Expenses

268

271

514

553

Loss before income taxes

(268)

(271)

(519)

(553)

Benefit for income taxes

(85)

(86)

(196)

(220)

Net loss

(183)

(185)

(323)

(333)

Net loss attributable to noncontrolling interests

—

—

—

—

Net loss attributable to controlling interests

$          (183)

$          (185)

$          (323)

$          (333)

EBITDAC

Net loss

$          (183)

$          (185)

$          (323)

$          (333)

Benefit for income taxes

(85)

(86)

(196)

(220)

Interest

168

158

326

316

Depreciation

2

2

4

4

EBITDAC

$           (98)

$          (111)

$          (189)

$          (233)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(14 of 20)

Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
(Unaudited - in millions except share and per share data)

Total Company

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Commissions

$         2,442

$         1,808

$         5,565

$         4,057

Fees

1,183

962

2,395

1,947

Supplemental revenues

141

103

321

217

Contingent revenues

91

73

206

166

Interest income, premium finance revenues and other income

98

233

184

480

Revenues before reimbursements

3,955

3,179

8,671

6,867

Reimbursements

48

43

90

82

Total revenues

4,003

3,222

8,761

6,949

Compensation

2,330

1,804

4,846

3,701

Operating

679

519

1,322

1,009

Reimbursements

48

43

90

82

Interest

168

158

326

316

Depreciation

57

50

118

95

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

6

(5)

23

10

Expenses

3,589

2,749

7,304

5,603

Earnings before income taxes

414

473

1,457

1,346

Provision for income taxes

90

105

310

269

Net earnings

324

368

1,147

1,077

Net earnings attributable to noncontrolling interests

—

—

1

5

Net earnings attributable to controlling interests

$           324

$           368

$         1,146

$         1,072

Diluted net earnings per share

$          1.25

$          1.40

$          4.41

$          4.12

Dividends declared per share

$          0.70

$          0.65

$          1.40

$          1.30

EBITDAC

Net earnings

$           324

$           368

$         1,147

$         1,077

Provision for income taxes

90

105

310

269

Interest

168

158

326

316

Depreciation

57

50

118

95

Amortization

301

180

579

390

Change in estimated acquisition earnout payables

6

(5)

23

10

EBITDAC

$           946

$           856

$         2,503

$         2,157

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(15 of 20)

Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions except per share data)

June 30, 2026

Dec 31, 2025

Cash and cash equivalents

$            1,386

$            1,396

Fiduciary assets (includes fiduciary cash of $7,947 in 2026 and $7,142 in 2025)

37,183

26,899

Accounts receivable, net

6,076

5,175

Other current assets

807

886

Total current assets

45,452

34,356

Fixed assets - net

765

789

Deferred income taxes

43

43

Other noncurrent assets

1,732

1,602

Right-of-use assets

578

598

Goodwill

23,026

22,593

Amortizable intangible assets - net

10,212

10,684

Total assets

$          81,808

$          70,665

Fiduciary liabilities

$          37,183

$          26,899

Accrued compensation and other current liabilities

3,548

4,017

Deferred revenue - current

788

737

Premium financing debt

134

226

Corporate related borrowings - current

1,520

640

Total current liabilities

43,173

32,519

Corporate related borrowings - noncurrent

11,955

12,104

Deferred revenue - noncurrent

177

155

Lease liabilities - noncurrent

497

515

Other noncurrent liabilities (includes tax credit carryforwards of $628 in 2026 and $713 in 2025)

2,259

2,025

Total liabilities

58,061

47,318

Stockholders' equity:

Common stock - issued and outstanding

256

257

Capital in excess of par value

17,567

17,783

Retained earnings

6,588

5,806

Accumulated other comprehensive loss

(694)

(525)

Total controlling interests stockholders' equity

23,717

23,321

Noncontrolling interests

30

26

Total stockholders' equity

23,747

23,347

Total liabilities and stockholders' equity

$          81,808

$          70,665

(16 of 20)

Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)

OTHER INFORMATION

2nd Q Ended

June 30, 2026

2nd Q Ended

June 30, 2025

6 Mths Ended

June 30, 2026

6 Mths Ended

June 30, 2025

Basic weighted average shares outstanding (000s)

256,649

256,260

256,884

255,540

Diluted weighted average shares outstanding (000s)

258,685

260,435

259,260

259,929

Number of common shares outstanding at end of period (000s)

256,341

256,363

Workforce at end of period (includes acquisitions):

Brokerage

56,202

*

44,909

Risk Management

11,254

10,584

Total Company

73,329

*

59,291

*

The acquisition of AssuredPartners added approximately 10,900 employees in August 2025.

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

2nd Q Ended June 30, 2026

Brokerage, as reported

$          604

$      154

$     450

$             —

$           450

$       1.74

Net (gains) on divestitures

(8)

(2)

(6)

—

(6)

(0.02)

Acquisition integration

113

29

84

—

84

0.33

Workforce and lease termination

40

10

30

—

30

0.11

Acquisition related adjustments

66

17

49

—

49

0.19

Amortization of intangible assets

294

76

218

—

218

0.84

Brokerage, as adjusted

$        1,109

$      284

$     825

$             —

$           825

$       3.19

Risk Management, as reported

$            78

$        21

$      57

$             —

$            57

$       0.22

Acquisition integration

1

—

1

—

1

–

Workforce and lease termination

2

1

1

—

1

0.01

Acquisition related adjustments

2

—

2

—

2

0.01

Amortization of intangible assets

7

2

5

—

5

0.02

Risk Management, as adjusted

$            90

$        24

$      66

$             —

$            66

$       0.26

Corporate, as reported

$         (268)

$       (85)

$    (183)

$             —

$          (183)

$      (0.71)

Transaction-related costs

12

2

10

—

10

0.04

Legal, tax and benefit plan related

21

5

16

—

16

0.06

Corporate, as adjusted

$         (235)

$       (78)

$    (157)

$             —

$          (157)

$      (0.61)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(17 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

2nd Q Ended June 30, 2025

Brokerage, as reported

$       686

$     176

$        510

$             —

$          510

$       1.95

Net (gains) on divestitures

(6)

(1)

(5)

—

(5)

(0.02)

Acquisition integration

41

11

30

—

30

0.12

Workforce and lease termination

37

9

28

—

28

0.11

Acquisition related adjustments

33

8

25

—

25

0.09

Amortization of intangible assets

174

44

130

—

130

0.50

Levelized foreign currency translation

(10)

(3)

(7)

—

(7)

(0.03)

Brokerage, as adjusted

$       955

$     244

$        711

$             —

$          711

$       2.72

Risk Management, as reported

$        58

$       15

$         43

$             —

$            43

$       0.16

Acquisition integration

2

1

1

—

1

0.01

Workforce and lease termination

4

1

3

—

3

0.01

Acquisition related adjustments

1

–

1

—

1

—

Amortization of intangible assets

6

1

5

—

5

0.02

Levelized foreign currency translation

1

—

1

—

1

—

Risk Management, as adjusted

$        72

$       18

$         54

$              –

$            54

$       0.20

Corporate, as reported

$      (271)

$     (86)

$       (185)

$             —

$         (185)

$      (0.71)

Transaction-related costs

29

5

24

—

24

0.09

Corporate, as adjusted

$      (242)

$     (81)

$       (161)

$              –

$         (161)

$      (0.62)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(18 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

6 Mths Ended June 30, 2026

Brokerage, as reported

$     1,830

$     467

$      1,363

$              1

$        1,362

$       5.25

Net (gains) on divestitures

(15)

(4)

(11)

—

(11)

(0.04)

Acquisition integration

200

51

149

—

149

0.57

Workforce and lease termination

67

17

50

—

50

0.19

Acquisition related adjustments

119

31

88

—

88

0.34

Amortization of intangible assets

565

146

419

—

419

1.62

Brokerage, as adjusted

$     2,766

$     708

$      2,058

$              1

$        2,057

$       7.93

Risk Management, as reported

$       146

$       39

$        107

$             —

$          107

$       0.41

Acquisition integration

2

—

2

—

2

0.01

Workforce and lease termination

3

1

2

—

2

0.01

Acquisition related adjustments

8

2

6

—

6

0.02

Amortization of intangible assets

14

4

10

—

10

0.04

Risk Management, as adjusted

$       173

$       46

$        127

$             —

$          127

$       0.49

Corporate, as reported

$      (519)

$    (196)

$       (323)

$             —

$         (323)

$      (1.25)

Transaction-related costs

19

3

16

—

16

0.06

Legal, tax and benefit plan related

39

22

17

—

17

0.07

Clean energy-related

5

2

3

—

3

0.01

Corporate, as adjusted

$      (456)

$    (169)

$       (287)

$             —

$         (287)

$      (1.11)

See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.

(19 of 20)

Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued

(Unaudited - in millions except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings

(Loss)

Attributable to

Noncontrolling

Interests

Net Earnings

(Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings

(Loss)

per Share

6 Mths Ended June 30, 2025

Brokerage, as reported

$     1,785

$     459

$      1,326

$              5

$        1,321

$       5.08

Net (gains) on divestitures

(12)

(3)

(9)

—

(9)

(0.04)

Acquisition integration

85

22

63

—

63

0.24

Workforce and lease termination

55

13

42

—

42

0.16

Acquisition related adjustments

66

16

50

—

50

0.19

Amortization of intangible assets

378

96

282

—

282

1.09

Effective income tax impact

—

(1)

1

—

1

—

Levelized foreign currency translation

7

1

6

—

6

0.03

Brokerage, as adjusted

$     2,364

$     603

$      1,761

$              5

$        1,756

$       6.75

Risk Management, as reported

$       114

$       30

$         84

$             —

$            84

$       0.32

Acquisition integration

4

2

2

—

2

0.01

Workforce and lease termination

7

1

6

—

6

0.02

Acquisition related adjustments

1

—

1

—

1

—

Amortization of intangible assets

12

3

9

—

9

0.04

Levelized foreign currency translation

2

—

2

—

2

0.01

Risk Management, as adjusted

$       140

$       36

$        104

$             —

$          104

$       0.40

Corporate, as reported

$      (553)

$    (220)

$       (333)

$             —

$         (333)

$      (1.28)

Transaction-related costs

52

8

44

—

44

0.17

Corporate, as adjusted

$      (501)

$    (212)

$       (289)

$             —

$         (289)

$      (1.11)

See "Information Regarding Non-GAAP Measures" on page 9 of 20.

Contact: 
Sara Walsh
630-285-3593 or [email protected] 

(20 of 20)

SOURCE Arthur J. Gallagher & Co.

, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced that its U.S. wholesale brokerage, binding authority and programs division, Risk Placement Services, Inc. (RPS), has acquired Greensburg, Pennsylvania-based W.N. Tuscano Agency, Inc. (Tuscano). Terms of the transaction were not disclosed.

Tuscano is a managing general agency (MGA) and wholesale insurance broker for independent agents in western Pennsylvania. The Tuscano team, led by Robin Tuscano, will remain in their current location under the direction of Steve Levin, Northeast Region leader for RPS.

"Tuscano is a highly regarded agency that complements our market expertise and further expands our wholesale capabilities in Pennsylvania," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am delighted to welcome Robin and his associates to our growing, global team."

Arthur J. Gallagher & Co. (NYSE: AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

SOURCE Arthur J. Gallagher & Co.

Key Takeaways AJG expects 2026 organic growth of about 7% in Risk Management and around 5.5% in Brokerage. AJG made eight deals in first-quarter 2026 and has around 40 term sheets in the pipeline. Dividend growth and buyback programs support shareholder returns, though higher expenses remain a risk. Shares of Arthur J. Gallagher & Co. (AJG - Free Report) are trading at a discount compared with the Zacks Brokerage Insurance industry. Its forward price-to-book value of 2.74X is lower than the industry average of 3.49X, the Finance sector’s 4.34X and the Zacks S&P 500 composite’s 8.07X.

Shares of other insurers like Erie Indemnity Company (ERIE - Free Report) are trading at a multiple higher than the industry average, while Brown & Brown, Inc. (BRO - Free Report) and Willis Towers Watson Public Limited Company (WTW - Free Report) are trading at a discount.

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AJG Trading Above 50-Day and 200-Day Moving AveragesShares of Arthur J. Gallagher closed at $253.76 on July 9 and are trading above the 50-day and 200-day simple moving averages (SMA) of $214.37 and $239.18, respectively, indicating solid upward momentum. SMA is a widely used technical analysis tool to predict future price trends by analyzing historical price data.

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Shares of Arthur J. Gallagher have lost 18.6% in the past year compared with the industry’s decline of 26.5%.

The insurer has a market capitalization of $65.2 billion. The average volume of shares traded in the last three months was 1.9 million.

Image Source: Zacks Investment Research

AJG’s Growth Projection EncouragesThe Zacks Consensus Estimate for Arthur J. Gallagher’s 2026 earnings per share indicates a year-over-year increase of 23.7%. The consensus estimate for revenues is pegged at $16.76 billion, implying a year-over-year improvement of 21.6%. The consensus estimate for 2027 earnings per share and revenues indicates an increase of 11.7% and 9.2%, respectively, from the 2026 estimates.

Earnings of Arthur J. Gallagher grew 18.1% in the last five years, better than the industry average of 13.9%. The long-term earnings growth is expected to be 14.9%, better than the industry average of 13.6%.

Target Price Reflects Potential UpsideBased on short-term price targets offered by 20 analysts, the Zacks average price target is $269.25 per share. The average indicates a potential 4.9% upside from the last closing price.

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Factors Impacting AJGArthur J. Gallagher remains focused on generating both organic (particularly international) and inorganic growth and is, thus, tapping into growth opportunities worldwide. This, coupled with solid retention and improving renewal premiums across all major geographies and most product lines, bodes well for growth.

In the Risk Management segment, AJG expects about 7% organic growth for 2026. AJG expects the full-year adjusted EBITDAC margin to range from 21% to 22%, up slightly from December expectations. In the Brokerage segment, AJG expects organic growth of around 5.5% for 2026, with projected underlying margin expansion of 40-60 basis points.

AJG’s revenues are geographically diversified with strong domestic and international operations. International contributes about one-third of revenues. Given the number and size of its non-U.S. acquisitions, AJG expects international contributions to its total revenues to trend upward.

Its inorganic growth story is impressive. Revenue growth rates generally ranged from 5% to 15% for 2026 acquisitions. In the first quarter of 2026, AJG completed eight acquisitions with estimated annualized revenues of about $49 million. Looking at the pipeline, AJG has around 40 term sheets signed or being prepared, representing around $400 million of annualized revenues.

AJG’s Capital DeploymentA robust capital position over the years reflects its financial flexibility. Banking on its capital position, AJG distributes wealth to shareholders through dividend hikes and share repurchases. In the first quarter of 2026, the dividend was raised by 7.6%, witnessing a three-year CAGR (2020-2025) of 7.6%. Arthur J. Gallagher’s current dividend yield is 1.1% and has a $1.5 billion share buyback program in place.
Risk

Arthur J. Gallagher has been experiencing an increase in expenses due to higher compensation, depreciation, amortization and operating expenses that have been eroding margins.

Arthur J. Gallagher’s return on equity of 12.8% is lower than the industry average of 18.8%. This shows the company’s inefficiency in managing shareholders’ funds. Also, the debt level is significant, which raises interest payouts and results in low times interest earned.

ConclusionAJG continues to benefit from solid retention, improving renewal premiums and organic and inorganic growth. The Risk Management and Brokerage segments should continue to witness significant growth. A robust capital position over the years reflects its financial flexibility. Its impressive dividend history, as well as solid growth projections, are other positives.

Given the escalating expenses and unfavorable return on capital, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- Arthur J. Gallagher & Co. today announced the acquisition of Burnaby, British Columbia-based Wilson M. Beck Insurance Services Inc. ("WMB"). Terms of the transaction were not disclosed.

WMB provides retail insurance brokerage services to commercial clients primarily in Western Canada, with industry focuses of construction, commercial real estate, surety bonding, hospitality and mining. The WMB team, led by David Beck, will remain in their current locations under the direction of Dave Partington, head of Gallagher's retail property/casualty brokerage operations in Canada, Latin America and the Caribbean.

"WMB's excellent reputation for niche industry expertise will enhance our retail brokerage capabilities in Canada," said J. Patrick Gallagher, Jr., Chairman and CEO. "I am very pleased to welcome David, his partners and associates to Gallagher."

Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

SOURCE Arthur J. Gallagher & Co.