Gallagher has posted Q2 results and it’s looking pretty good right now.
“We had an excellent second quarter!” said J. Patrick Gallagher, Jr., Chairman, President and CEO. “Our core brokerage and risk management segments combined to post 22% growth in revenue, including nearly 11% organic revenue growth and approximately $240 million of acquired rollover revenues; net earnings growth was 35%; adjusted EBITDAC growth was 23%; and adjusted EPS growth was 19%. Also during the quarter, we completed 9 new tuck-in mergers with approximately $53 million of annualized revenue.
“Overall, second quarter 2022 global P/C renewal premium increases of 10.5% were above first quarter 2022 and fourth quarter 2021 levels. Nearly all lines of coverages saw renewal premium increases equal to or higher than first quarter, with professional liability the lone exception. Additionally, second quarter mid-term policy endorsements, audits and cancellations continue to trend more favorable than a year ago. Combined with a strong labor market, which is favorably impacting our human resource and benefits consulting business and our claims management operations, we are not seeing meaningful signs of an economic slowdown.”
Commenting on Gallagher’s UK broking and underwriting results for Q2 2022, Simon Matson, EMEA CEO said: “Our strong start to the year continued into Q2 and I am delighted that we achieved organic growth of 8%. This is an excellent achievement with great new business growth and double digit organic in our Specialty division.
“Our Specialty division has had a very strong quarter delivering results significantly ahead of last year. Our property & casualty and construction practices both performed particularly strongly, the latter continuing to attract a number of key senior new hires, further broadening out our capability and meaning we are well placed for continued expansion.
“Alongside delivering strong organic growth, M&A activity continues to be an important element of our growth strategy, and in June, we announced our Retail division had acquired Teesside based Erimus and Irish broker INNOVU.
“Highlights in the UK Gallagher Re operations include high levels of client retention and new client wins, with cyber performing particularly well. Integration with the wider global team continues at pace and we continue to make strategic hires, including dedicated accident and health capability.
“Pen Underwriting continues to make strong progress towards its goal of becoming a £1 billion GWP business by 2026. In the last quarter the team has seen some notable client wins by the public sector, specialist property and casualty practices, as well as launching a new
tech professional indemnity proposition. All of this has been underpinned by excellent retention levels.
“We continue to attract the very best talent in the insurance sector to Gallagher and in the last three months a further 330 colleagues joined our UK team, bringing our employee base to 7,000. The team continues to demonstrate excellent commitment to our clients, working hard to deliver the very best insurance solutions for them and would like to thank them all for their hard work. I look forward to working with the team over the rest of the year.”
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