The global broker’s brokerage segment had 2022 net profits of $1.2 billion (adjusted: $1.8 billion), an increase from $1 billion a year earlier. In the risk management segment, net earnings were $115.8 million (adjusted: $120 million), again up from $89.5 million in 2021.
The net loss in its corporate segment grew from $151.1 million (adjusted: $56.8 million loss) in 2021 to $201.6 million (adjusted: $221.1 million loss) in 2022.
Revenue before reimbursements for the full year across the business was $8.4 billion, up from $8.0 billion in 2021 (adjusted: $7.8 billion)
AJ Gallagher’s fourth quarter results
Reported company-wide net earnings for the fourth quarter were $135.5 million (adjusted: $331.9 million), up from $120.9 million for fourth quarter 2021 (adjusted: $290.3 million). ).
Revenue before refunds was $2 billion, up from $1.9 billion in the fourth quarter of 2021.
“We had an excellent fourth quarter, capping off another excellent year of financial performance,” said J. Patrick Gallagher, Jr, Gallagher’s president and chief executive officer.
“During the quarter, our core brokerage and risk management segments combined to post 16% revenue growth, of which 11.7% was organic revenue growth.”
Gallagher closed 36 acquisitions in 2022, 17 of them in the fourth quarter, the company said in an earnings release.
“We completed 17 new mergers in the quarter and our newly acquired reinsurance brokerage operations finished the year ahead of our pro forma revenue and EBITDAC estimate,” Pat Gallagher said.
Premiums will continue to rise, the brokerage CEO predicted.
“Global primary P/C renewal premium increases were more than 9% in the quarter, consistent with the first three quarters of 2022,” said Pat Gallagher.
“Our major carrier partners are in many cases facing higher reinsurance costs and seeing increasing trends in cost of loss, so we believe there is good reason to expect continued premium increases.”
Meanwhile, positive policy endorsements and other medium-term policy adjustments were higher year-over-year for the seventh consecutive quarter, which Pat Gallagher said was “indicative of the underlying strength of our P&C clients’ businesses.” .
