Arthur J. Gallagher & Co.: A Story Of Strategic Expansion Through Acquiring Associated Insurance Services!

Arthur J. Gallagher & Co. reported strong fourth quarter results for 2023 with key financial metrics in line with its December IR day. Revenue growth for the Brokerage and Risk Management segments was 20% with 8.1% organic growth, a figure that the company corrects to 9.4% controlling for accounting adjustments and large life case timing. The results for the quarter were affected by counterintuitive earn-out payable accounting, to truly gauge the performance of the company, one has to consider the results on an adjusted basis. Adjusted earnings per share were $2.22, up 23% year-over-year, and EBITDAC margin was 30.1%, up 69 basis points over Q4 ’22. These results highlight the strength of the company and display a strong close to a year marked by considerable growth.