Arthur J. Gallagher & Co. reported robust financial performance for the first quarter ended March 31, 2025, fueled by sustained growth across its brokerage and risk management segments, along with continued merger and acquisition activity.
The company posted a 14% year-over-year increase in combined revenue from its core operations, with organic revenue growth reaching 9%. Profitability also improved significantly: the net earnings margin rose by 175 basis points to 23%, while the adjusted EBTIDAC margin climbed 338 basis points to 41.1%.
During the quarter, Gallagher completed 11 mergers, collectively contributing approximately US$100 million in annualized revenue. In early April, the firm further expanded its portfolio with the acquisition of Woodruff Sawyer, a deal expected to generate more than US$250 million in additional annualized revenue.
Gallagher also provided insights into ongoing trends in the global property and casualty insurance market, noting a divergence in premium movements. In the first quarter, commercial property renewal premiums declined by 2%, while casualty premiums increased by 8%. Exposure changes—including mid-term endorsements—remained positive, and the company reported no material impact from tariffs or geopolitical developments on client activity.
The firm offered an update on its pending acquisition of AssuredPartners, valued at approximately US$13.45 billion. Originally announced in December 2024, the deal is currently undergoing regulatory review. On March 7, 2025, Gallagher received a second request for information under the Hart-Scott-Rodino Act and is actively cooperating with regulators. The transaction is anticipated to close in the second half of 2025.
As of March 31, 2025, Gallagher reported US$9.55 billion in public debt and US$3.52 billion in private placements. The company maintained a strong liquidity position, with no outstanding borrowings under its line of credit and US$152.8 million in revolving loan balances tied to premium finance receivables—these receivables are collateralized and excluded from debt covenant calculations.
Additionally, on April 3, Gallagher amended and restated its credit facility, extending the maturity date from June 2028 to April 2030. The revised agreement also increased the total commitment from US$1.7 billion to US$2.5 billion, reinforcing the company’s financial flexibility.
