Arthur J.
Gallagher & Co. (Gallagher) thrived during the first quarter of 2022, despite the challenges resulting from the persistence of the COVID-19 pandemic, the conflict between Ukraine and Russia, and other factors. It reported that its core brokerage and risk management segments combined to post 30% growth in revenue, including over 10% organic revenue growth and $380 million of acquired rollover revenues.
For the three months to March 31, 2022 (Q1 FY22), Gallagher saw $613.3 million net earnings (as adjusted) for the brokerage segment (compared to $453.8 million in Q1 FY21), $25.6 million net earnings (as adjusted) for risk management (compared to $21.4 million in Q1 FY21), and $39.5 million net earnings (as adjusted) for corporate (compared to $11.3 million in Q1 FY21).
“Our bottom-line results were equally as strong with net earnings growth of 28%, adjusted EBITDAC growth of 34%, and adjusted EBITDAC margin expansion of 55 basis points,” said Gallagher chairman, president, and CEO J. Patrick Gallagher, Jr. Concerning the conflict between Ukraine and Russia during Q1 FY22, Gallagher confirmed that it does not have offices or direct operations in both countries. It had a small number of clients based in or operating in Russia, but it suspended those relationships and no longer provides services to them. Additionally, it implemented robust procedures to comply with all applicable sanction laws. Gallagher estimates that its actions in response to the conflict will adversely impact full-year 2022 brokerage segment annual revenues by up to $10 million and full-year 2022 net after tax earnings by up to $0.03 per share, with a $0.01 adverse impact in Q1 2022.
