Strong Revenue Growth and …

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• Revenue Growth: 20% overall, with 4.8% organic growth.

• Adjusted EBITDAC Growth: 22% increase.

• Adjusted EBITDAC Margin Expansion: 26 basis points increase.

• GAAP EPS: $1.76.

• Adjusted EPS: $2.87.

• Brokerage Segment Revenue Growth: 22% reported, 4.5% organic.

• Risk Management Segment Revenue Growth: 8% reported, 6.7% organic.

• Third Quarter Adjusted EBITDAC Margin: 33.5% for Brokerage segment.

• Risk Management Adjusted EBITDAC Margin: 21.8%.

• Insurance Renewal Premium Changes: Property down 5%, Casualty lines up 6%.

• Mergers and Acquisitions: 5 new mergers, $40 million estimated annualized revenue.

• Year-to-Date Acquired Revenue: More than $3.4 billion.

Release Date: October 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Arthur J. Gallagher & Co (NYSE:AJG) reported a strong third quarter with a 20% revenue growth driven by both organic growth and mergers and acquisitions.

• The company achieved a 4.8% organic growth and a 22% increase in adjusted EBITDAC, showcasing effective scalability and productivity improvements.

• The integration of Assured Partners is progressing well, with early synergies and collaborative sales efforts already yielding positive results.

• The Risk Management segment, Gallagher Bassett, reported an 8% revenue growth with strong new business and client retention, expecting continued favorable dynamics.

• Arthur J. Gallagher & Co (NYSE:AJG) has a robust M&A pipeline with 35 term sheets representing around $400 million in annualized revenue, indicating strong future growth potential.

• The company faced a $0.22 EPS shortfall due to intra-quarter revenue seasonality related to the Assured Partners acquisition.

• There was pressure on contingents and a shift of large life insurance cases out of the third quarter, impacting organic growth.

• The Brokerage segment’s adjusted EBITDAC margin was flat year-over-year, with underlying margin expansion offset by M&A interest income.

• The property insurance market saw a 5% decrease in renewal premiums, which could impact future revenue growth.

• The integration of Assured Partners revealed more seasonality in their business than initially estimated, affecting revenue projections.

Q: How will the revenue synergies from Assured Partners be accounted for in terms of organic revenue growth? A: Douglas Howell, CFO, explained that revenue synergies from Assured Partners will be credited to their P&L. If there are broader base contingent commissions or supplementals impacting Gallagher’s books, it would be included in Gallagher’s organic growth. Thus, some synergies might understate organic revenues for Gallagher.