Gallagher reveals 2022 full year results
The global broker’s broking segment saw 2022 net earnings of $1.2 billion (adjusted: $1.8 billion), an increase from the previous year’s $1 billion. In the risk management segment, net earnings were US$115.8 million (adjusted: US$120 million), again up on 2021’s $89.5 million.
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.
Revenues before reimbursements for the full year across the business were $8.4 billion, an increase on 2021’s $8 billion (adjusted: $7.8 billion)
AJ Gallagher fourth quarter results
Reported company-wide net earnings for Q4 were $135.5 million (adjusted: $331.9 million), representing a boost on Q4 2021’s $120.9 million (adjusted: $290.3 million).
Revenues before reimbursements were $2 billion, an increase from $1.9 billion in Q4 2021.
“We had a terrific fourth quarter, to cap off another excellent year of financial performance,” said J. Patrick Gallagher, Jr, Gallagher chairman, president and CEO.
“During the quarter, our core brokerage and risk management segments combined to post 16% growth in revenue, of which 11.7% was organic revenue growth.”
Gallagher closed 36 acquisitions in 2022, with 17 of these coming in Q4, the business said in an earnings release.
“We completed 17 new tuck-in 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 broking 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 primary carrier partners in many cases are facing higher reinsurance costs and seeing rising loss costs trends, so we believe there is good reason to expect continued premium increases.”
Meanwhile, positive policy endorsements and other mid-term policy adjustments were higher year over year for the seventh quarter in a row, which Pat Gallagher said was “indicative of the underlying strength of our P&C clients’ businesses”.