Gallagher Third-Quarter Earnings Per Share Climb To $1.55 From $1.04 As AssuredPartners Rolls In
The insurance broker posted a 26th straight quarter of double-digit adjusted EBITDAC growth, with organic growth of 5%.
Arthur J. Gallagher, the insurance brokerage, said net earnings reached $406 million in the third quarter, up from $273 million a year earlier, as the AssuredPartners acquisition lifted revenue. Diluted earnings per share rose to $1.55 from $1.04, the company reported Thursday.
Revenue and profit, year over year
Revenue before reimbursements came to $3,930 million, against $3,325 million a year earlier. Adjusted earnings per share were $3.00 versus $2.31, and adjusted EBITDAC, a profit measure before interest, taxes, depreciation, amortization and earnout changes, was $1,253 million versus $1,013 million.
Chairman and CEO J. Patrick Gallagher, Jr. said the combined Brokerage and Risk Management segments grew revenue 18%, including organic growth of 5%. Net earnings and adjusted EBITDAC each grew 25%, which he called the "26th consecutive quarter of double-digit adjusted EBITDAC growth."
Brokerage net earnings were $515 million versus $409 million. Risk Management earned $61 million versus $50 million, with organic fee growth of 10%.
What AssuredPartners does to the comparison
Gallagher, which brokers insurance and reinsurance and administers claims for businesses, public bodies and insurers, raised about $14 billion through a stock offering and senior notes to fund AssuredPartners, which closed in the third quarter of 2025 for about $14 billion. AssuredPartners revenue is excluded from organic growth.
The year-earlier quarter also carried about $76 million of interest income on the cash raised for the deal, which flatters that comparison.
Tuck-in deals slowed: five acquisitions closed in the quarter with about $102 million of estimated annualized revenue, versus six deals and $3,036 million a year earlier.
Buybacks, dividends and the call
Gallagher repurchased about 0.4 million shares for about $100 million in the quarter, and declared dividends of $0.70 per share, up from $0.65.
Management hosts a webcast call at 5:15 p.m. ET Thursday. A CFO Commentary posted on its investor site carries estimates for 2026 and later results.
The webcast call at 5:15 p.m. ET Thursday is the next chance to hear management on the AssuredPartners roll-in.
Sources
- 8-K Filing — Arthur J. Gallagher & Co. (AJG) — SEC EDGAR
- Exhibit a3rdquarter2026earningsrel.htm — Arthur J. Gallagher & Co. 8-K exhibit — SEC EDGAR
- Arthur J. Gallagher & Co. Announces Third Quarter 2026 Financial Results — prnewswire.com
- Arthur J. Gallagher & Co. Announces Regular Fourth Quarter Dividend — prnewswire.com
