Revenue and earnings growth
Arthur J. Gallagher grew its combined brokerage and risk management businesses by 5% organically in the third quarter. Combined revenue rose 18% and adjusted EBITDAC grew 25%, marking the 26th consecutive quarter of double-digit adjusted EBITDAC growth. Total company revenues before reimbursements reached US$3.93bn, up from US$3.33bn in the prior-year period. Brokerage organic revenue grew 5%, with base commissions and fees up 4% and supplemental revenues rising 14%, while contingent revenues remained flat.
Market context and diversification
The broker's results contrast with competitors such as Brown & Brown, which reported 1.2% organic growth due to a challenging rate environment, and AXA, which noted its AXA XL unit is prioritizing margin over volume in soft casualty markets. Gallagher's broader mix—incorporating retail broking, reinsurance broking through Gallagher Re, employee benefits, and claims services—cushions it from softening property and specialty pricing, suggesting that diversified firms are better positioned as rate increases moderate.