Arthur J. Gallagher & Co (AJG) Announces Q3 2023 Financial Results
Arthur J. Gallagher & Co (NYSE:AJG) reports 22% reported revenue growth in Q3 2023
Adjusted EBITDAC margin improved by 78 basis points
Completed 12 new mergers with approximately $57 million of estimated annualized revenue
Global insurance renewal premiums up by 10%
Arthur J. Gallagher & Co (NYSE:AJG) released its financial results for the third quarter of 2023 on October 26, 2023. The company reported a significant increase in revenue growth and improved EBITDAC margin. The company also completed 12 new mergers, contributing to an estimated annualized revenue of $57 million.
Financial Performance
The company's Brokerage segment reported revenues of $2,122.1 million in Q3 2023, a significant increase from $1,736.2 million in Q3 2022. The Risk Management segment also saw an increase in revenues, reporting $331.0 million in Q3 2023 compared to $275.5 million in Q3 2022. The company's total reported revenues for Q3 2023 stood at $2,453.6 million, up from $2,012.0 million in Q3 2022.
Key Highlights
J. Patrick Gallagher, Jr., Chairman, President, and CEO, commented on the company's performance, stating,
We had an excellent third quarter. Our core brokerage and risk management segments combined posted 22% reported revenue growth, 10.5% organic revenue growth, a 15.5% reported net earnings margin, and we improved our adjusted EBITDAC margin by 78 basis points."
He also highlighted the company's successful mergers and acquisitions, stating,
During the quarter, we completed 12 new mergers with approximately $57 million of estimated annualized revenue."
Looking Ahead
Despite the impressive performance, the company remains focused on its growth opportunities. Gallagher stated,
Looking ahead, our growth opportunities are immense. And with continued insurance and reinsurance price increases, economic growth, increasing geopolitical tensions, and a growing appreciation for risk, I believe our team is in a great position to provide our clients with superior insurance and risk management solutions."
The company's financial results reflect its strong performance and growth potential, making it a company to watch in the coming quarters.
Explore the complete 8-K earnings release (here) from Arthur J. Gallagher & Co for further details.
This article first appeared on GuruFocus.
