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Gallagher Announces Strong Full Year 2023 Financial Results

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Compared to the prior period, there was a discernible uptick in risk management.

The financial figures for the quarter and full year ending December 31, 2023, have been released by Arthur J. Gallagher & Co.

Sales for Gallagher’s brokerage division were $2,051.5 million in Q42023, up from $1,704.3 million the previous year. This division’s net income dropped to $24.8 million from $143.3 million in Q42022.

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Profit for the division was $539.9 million, up from $457.6 million the year before, after adjusting for depreciation, amortisation, and other modifications. After reaching $0.66 in Q42022, diluted net earnings per share dropped to $0.11.

Net earnings were $445.1 million, EBITDAC was $646.9 million, and after adjustments, the brokerage segment’s revenues were $2,047.5 million, with a per-share earning of $2.01. For comparison, in the same period in 2022, adjusted revenues were $1,712.0 million, net earnings were $357.3 million, EBITDAC was $532.6 million, and earnings per share were $1.65.
With a rise from $290.6 million in the fourth quarter of 2022, Gallagher recorded revenues of $340.4 million for the risk management division. Increases to $42.3M in net earnings and $70.2M in EBITDAC from $53.8M in 2022 and $36.4M, respectively, were attributed to this division. After adjusting for certain factors, the segment’s adjusted financials show $340.3 million in revenues, $45.6 million in net earnings, and $71.5 million in EBITDAC, with $0.21 in earnings per share.

Revenues for the entire company jumped significantly to $2,393.1 million from $1,995.2 million in the fourth quarter of 2022, according to reports. Having said that, net earnings were $135.5 million at the corresponding time last year, while the company’s reported loss was $39.6 million. With a loss of $0.15 per share, the overall company’s EBITDA increased to $514.3 million from $452.1 million in 2022.

The company’s adjusted total results reveal $2,389.0 million in revenues, $408.4 million in net earnings, and $669.0 million in EBITDAC. Earnings per share were $1.85. In the fourth quarter of 2022, the adjusted numbers were as follows: revenues of $2,002.6 million, net earnings of $321.6 million, EBITDAC of $530.1 million, and per-share earnings of $1.49.

J. Patrick Gallagher, Jr., chairman and chief executive officer of Gallagher, commented on the financial results, noting the company’s growth in revenue and outstanding performance in the fourth quarter, especially in its core divisions of risk management and brokerage. With anticipated yearly sales of $410 million, the business also closed 14 new mergers throughout the quarter.
Also, unlike last year, when conditions were unstable, the January 1 renewal period was defined by stability and predictability, according to Gallagher Re.

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