ARTHUR J. GALLAGHER & CO. ANNOUNCES
ARTHUR J. GALLAGHER & CO. ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS ROLLING MEADOWS, IL, October 29, 2026 — Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended September 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, October 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the “CFO Commentary” and “Supplemental Quarterly Data,” which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled “Information Regarding Non-GAAP Measures” beginning on page 9.
For third quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $76 million of incremental interest income, or approximately 22 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
For third quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $477 million, $10 million and $16 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $121 million, $3 million and ($3) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 17. 1 of 20 “We delivered another excellent quarter!” said J. Patrick Gallagher, Jr., Chairman and CEO. “Our combined Brokerage and Risk Management segments delivered revenue growth of 18%, including organic growth of 5%. Net earnings grew 25%, and adjusted EBITDAC also grew 25%, marking our 26th consecutive quarter of double-digit adjusted EBITDAC growth, together with another quarter of margin expansion. Strong client retention, excellent new business and continued growth in our clients’ businesses, together with our continued success growing through acquisitions, demonstrate the strength of our two-pronged growth strategy and the diversity of our business.
“These results demonstrate the strength and resilience of our diversified model as market conditions evolve. As risk becomes more complex, our clients continue to value our advice, advocacy, analytics and market access. We have a terrific team, a proven strategy and significant opportunities ahead of us, and we remain very confident in our ability to create long-term value for our clients, colleagues and shareholders.” Summary of Financial Results - Nine-Months ended September 30
For the nine-month period ended September 30, 2025, reported and adjusted amounts for the Brokerage Segment include approximately $363 million of incremental interest income, or approximately $1.05 after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
For the nine-month period ended September 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $1,413 million , $37 million and $79 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $362 million, $10 million and ($30) million, respectively, relating to these adjustments. A detailed reconciliation is shown on page 19. 2 of 20 Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):
* In the third quarter of 2025, 9,000 shares of Gallagher common stock were issued directly to sellers in connection with tax-free exchange acquisitions. No shares were issued in connection with tax-free exchange acquisitions in the third quarter of 2026. 3 of 20 Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
* Reported third quarter 2026 compensation expense ratio was 0.9 pts lower than third quarter 2025. This ratio was primarily impacted by higher integration and acquisition related costs, as well as lower interest income revenues in the quarter, as third quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. These items were more than offset by lower employee benefits and the roll-in of AssuredPartners, including the impact of compensation savings related to synergies.
** Adjusted third quarter 2026 compensation expense ratio was 1.7 pts lower than third quarter 2025. This ratio was primarily impacted by lower interest income revenues in the quarter, as third quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024. This was more than offset by the roll-in of AssuredPartners, including the impact of compensation savings related to synergies.
* Reported third quarter 2026 operating expense ratio was 0.2 pts lower than third quarter 2025. Adjusted third quarter 2026 operating expense ratio was 0.3 pts lower than third quarter 2025. Both ratios were impacted by lower interest income revenues in the quarter, as third quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024, which was more than offset by the roll-in of AssuredPartners, including the impact of operating expense savings related to synergies. 4 of 20 Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
* Third quarter 2025 adjusted EBITDAC includes approximately $76 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, favorably impacted the year-over-year change in third quarter adjusted EBITDAC margin by approximately 0.4%.
** Adjusted EBITDAC for the nine-month period ended September 30, 2025 includes approximately $363 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024. The interest income in the prior year, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year-over-year change in adjusted EBITDAC margin for the nine-month period ended September 30, by approximately 2.2%.
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions):
5 of 20 Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions):
* Reported third quarter 2026 compensation expense ratio was 1.3 pts lower than third quarter 2025. This ratio was primarily impacted by savings related to headcount controls and employee benefits as well as lesser workforce related charges.
** Adjusted third quarter 2026 compensation expense ratio was 1.1 pts lower than third quarter 2025. This ratio was primarily impacted by savings related to headcount controls and employee benefits.
* Reported third quarter 2026 operating expense ratio was 0.4 pts lower than third quarter 2025. This ratio was primarily impacted by lower integration and workforce related charges, partially offset by additional investments in technology.
** Adjusted third quarter 2026 operating expense ratio was 0.2 pts higher than third quarter 2025. This ratio was primarily impacted by additional investments in technology.
6 of 20 Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions):
(1) Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions. Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.
(2) Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(9) million in third quarter 2026 and a net unrealized foreign exchange remeasurement gain of $5 million in third quarter 2025. Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(3) million in the nine-month period ended September 30, 2026 and a net unrealized foreign exchange remeasurement loss of $(43) million in the nine- month period ended September 30, 2025. 7 of 20 (3) Adjustments in the nine-month period ended September 30, 2026 include the write-down of a clean energy-related investment.
(4) Adjustments in third quarter 2026 and 2025 and the nine-month periods ended September 30, 2026 and 2025 include costs associated with legal and tax matters.
(5) Adjustments in the nine-month period ended September 30, 2026 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.
- At September 30, 2026, Gallagher had $9,550 million of borrowings from public debt, $2,683 million of borrowings from private placements and $630 million of borrowings under its line of credit facility. In addition, Gallagher had $228 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.
- For 2026, this consists of operating results related to Gallagher’s investments in new clean energy projects, primarily fusion and carbon sequestration projects.
- Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs.
- Consists of overhead allocations mostly related to corporate staff compensation, other corporate-level activities, and net unrealized foreign exchange remeasurement. In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.
- Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher’s consolidated effective tax rates for the quarters ended September 30, 2026 and 2025 were 21.2% and 21.1%, respectively.
- In fourth quarter 2024 and first quarter 2025, Gallagher raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion.
- In the third quarter of 2026, Gallagher repurchased approximately 0.4 million shares of its common stock for approximately $100 million. For the nine-month period ended September 30, 2026, Gallagher repurchased approximately 2.7 million shares of its common stock for approximately $580 million.
- Gallagher will host a webcast conference call on Thursday, October 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days.
Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipates,” “believes,” “contemplates,” “see,” “should,” “could,” “will,” “estimates,” “expects,” “intends,” “plans” and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment. 8 of 20 Gallagher’s actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs and trade disruptions; a recession or economic downturn; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions; risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in its history, including risks related to its ability to successfully integrate operations and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits of such acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to “greenwashing” and “greenhushing”; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively to its business and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; risks related to “AI-washing”; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry’s competitive landscape.
Please refer to Gallagher’s filings with the Securities and Exchange Commission, including Item 1A, “Risk Factors,” of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher’s website.
In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher’s management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher’s results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher’s performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher’s industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.
- Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher’s operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 17 to 20 for a reconciliation of the adjustments made to income taxes.
- Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, are each adjusted to exclude the following, as applicable: 9 of 20 • Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.
• Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT-related systems.
• Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.
• Workforce-related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.
• Lease termination-related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.
• Acquisition-related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, these adjustments may from time to time include changes in balance sheet estimates arising from conforming accounting principles, purchase- related true-ups and other balance sheet adjustments made after the closing date.
• Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher’s merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.
• The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year.
• Effective income tax rate impact, which levelizes the prior year for the change in current year tax rates.
• Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment.
• Legal and tax-related, which represents the impact of adjustments in second quarter 2026 and third quarter 2025 related to costs associated with legal and tax matters.
• B enefit plan-related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.
Adjusted compensation expense and adjusted operating expense ratios are each expense divided by adjusted revenues.
- EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher’s operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis.
• EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains (losses) on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over- period impact of foreign currency translation, as applicable, (and for the Corporate segment, the clean energy related adjustments described above) and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher’s operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.
- Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains (losses) on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net 10 of 20 Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher’s operating performance (and as such should not be used as a measure of Gallagher’s liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.
Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Because the AssuredPartners acquisition closed in the middle of third quarter 2025 (on August 18, 2025), organic revenue for the three-month and nine-month periods ended September 30, 2026 excludes all AssuredPartners revenues, including revenues earned after the first anniversary of the acquisition, and the comparable 2025 periods likewise exclude AssuredPartners revenues. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher’s results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher’s Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher’s results between periods, we further exclude the period-over-period impact of foreign currency translation.
These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.
Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6, respectively, for the Brokerage and Risk Management segments). 11 of 20
Sept 30, 2026 Dec 31, 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 1,213 $ 1,396 Fiduciary assets (includes fiduciary cash of $7,596 in 2026 and $7,142 in 34,345 26,899 2025) Accounts receivable, net 5,977 5,175 Other current assets 786 886 Total current assets 42,321 34,356 Fixed assets - net 757 789 Deferred income taxes 45 43 Other noncurrent assets 1,744 1,602 Right-of-use assets 610 598 Goodwill 23,385 22,593 Amortizable intangible assets - net 10,202 10,684 Total assets $ 79,064 $ 70,665 Fiduciary liabilities $ 34,345 $ 26,899 Accrued compensation and other current 3,776 4,017 liabilities Deferred revenue - current 839 737 Premium financing debt 228 226 Corporate related borrowings - 1,008 640 current Total current liabilities 40,196 32,519 Corporate related borrowings - 11,735 12,104 noncurrent Deferred revenue - noncurrent 189 155 Lease liabilities - noncurrent 518 515 Other noncurrent liabilities (includes tax credit carryforwards of $615 in 2,355 2,025 2026 and $713 in 2025) Total liabilities 54,993 47,318 Stockholders' equity: Common stock - issued and outstanding 256 257 Capital in excess of par value 17,584 17,783 Retained earnings 6,809 5,806 Accumulated other comprehensive loss -611 -525 Total controlling interests 24,038 23,321 stockholders' equity Noncontrolling interests 33 26 Total stockholders' equity 24,071 23,347 Total liabilities and stockholders' $ 79,064 $ 70,665 equity
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited)
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. 17 of 20 Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. 18 of 20 Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. 19 of 20 Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued
Full text with the tables
Exhibit 99.1
NEWS RELEASE
ARTHUR J. GALLAGHER & CO. ANNOUNCES
THIRD QUARTER 2026 FINANCIAL RESULTS
ROLLING MEADOWS, IL, October 29, 2026 — Arthur J. Gallagher & Co. (NYSE: AJG)
today reported its financial results for the quarter ended September 30, 2026.
Management will host a webcast conference call to discuss these results on
Thursday, October 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call,
and for printer-friendly formats of this release, the “CFO Commentary” and
“Supplemental Quarterly Data,” which may also be referenced during the call,
please visit ajg.com/IR. These documents contain both GAAP and non-GAAP
measures. Investors and other users of this information should read carefully
the section entitled “Information Regarding Non-GAAP Measures” beginning on page
9.
Summary of Financial Results - Third Quarter
D…
R… N… N…
B… E… E…
R… (… E… (…
3… 3… 3… P…
Q Q Q S…
26 3… 26 3… 26 3… 3… 3…
(… Q (… Q (… Q Q Q
… m… 25 m… 25 m… 25 26 25
──────────────────────────────────────────────────────────────────────────────
…
… $ 3… $ 2… $ 5… $ … $ … $ … $ … $ …
…
…
…
… -… 8 -… 6 … 8 … …
…
…
… — — 77 … … … … …
…
…
… — — 27 … … … … …
…
…
… — — 50 … … … … …
…
…
… — — 2… … — — … …
…
…
…
…
… — — — 2 — — — …
…
…
…
… — -2 — … — … — …
…
…
…
… 3… 2… 8… … … … … …
…
…
… 4… 4… 61 … … … … …
…
…
… — — — 1 — 2 — …
…
…
… — — 1 3 1 4 — …
…
…
… — — 1 — 2 — … —
…
…
… — — 5 3 — — … …
…
…
…
… — 5 — 1 — 1 — —
…
…
…
… 4… 4… 68 … … … … …
…
…
…
… — 1 -… … … … … …
…
… — — 14 … … … … …
…
…
…
… — — -1 8 … … — …
…
…
…
… — 1 -… … … … … …
…
…
… $ 3… $ 3… $ 4… $ … $ … $ … $ … $ …
…
…
…
… $ 3… $ 3… $ 7… $ … $ … $ … $ … $ …
…
…
…
…
&
… $ 3… $ 3… $ 5… $ … $ … $ … $ … $ …
…
…
…
…
…
&
… $ 3… $ 3… $ 9… $ … $ … $ … $ … $ …
…
…
…
For third quarter 2025, reported and adjusted amounts for the Brokerage Segment
include approximately $76 million of incremental interest income, or
approximately 22 cents after-tax, earned on the cash proceeds associated with
the AssuredPartners Financing in December 2024.
For third quarter 2026, the pretax impact of adjustments for the Brokerage, Risk
Management, and Corporate Segments totals $477 million, $10 million and $16
million, respectively, and corresponding adjustment to the provision (benefit)
for income taxes was $121 million, $3 million and ($3) million, respectively,
relating to these adjustments. A detailed reconciliation is shown on page 17.
1 of 20
“We delivered another excellent quarter!” said J. Patrick Gallagher, Jr.,
Chairman and CEO. “Our combined Brokerage and Risk Management segments delivered
revenue growth of 18%, including organic growth of 5%. Net earnings grew 25%,
and adjusted EBITDAC also grew 25%, marking our 26th consecutive quarter of
double-digit adjusted EBITDAC growth, together with another quarter of margin
expansion. Strong client retention, excellent new business and continued growth
in our clients’ businesses, together with our continued success growing through
acquisitions, demonstrate the strength of our two-pronged growth strategy and
the diversity of our business.
“These results demonstrate the strength and resilience of our diversified model
as market conditions evolve. As risk becomes more complex, our clients continue
to value our advice, advocacy, analytics and market access. We have a terrific
team, a proven strategy and significant opportunities ahead of us, and we remain
very confident in our ability to create long-term value for our clients,
colleagues and shareholders.”
Summary of Financial Results - Nine-Months ended September 30
…
R… N… …
B… E… …
R… (… … …
9 9 9 …
M… M… … …
26 9 26 9 … 9 9 9
(… M… (… … … … … …
… m… 25 m… … … … … …
──────────────────────────────────────────────────────────────────────────────
…
… $ 1… $ 9… $ 1… $ 1… $ 3… $ 3… $ 7… $ 6…
…
…
… -… -4 -… -3 -… -4 -… -…
…
…
… — — 2… 1… 3… 1… 0… 0…
…
…
… — — 77 58 1… 77 0… 0…
…
…
… — — 1… 97 1… 1… 0… 0…
…
…
… — — 6… 4… — — 2… 1…
…
…
…
…
… — — — 3 — — — 0…
…
…
…
… — 56 — 1 — 4 — 0…
…
…
…
… 1… 9… 2… 2… 4… 3… 1… 9…
…
…
… 1… 1… 1… 1… 2… 2… 0… 0…
…
…
… — — 2 3 2 6 0… 0…
…
…
… — — 3 9 4 11 0… 0…
…
…
… — — 7 1 10 1 0… 0…
…
…
… — — 15 12 — — 0… 0…
…
…
…
… — 17 — 3 — 3 — 0…
…
…
…
… 1… 1… 1… 1… 2… 2… 0… 0…
…
…
…
… -5 1 -… -… -… -… -… -…
…
… — — 30 80 36 86 0… 0…
…
…
…
… — — 16 8 38 24 0… 0…
…
…
… 5 — 3 — 5 — 0… —
…
…
… — 1 -… -… -… -… -… -…
…
…
… $ 1… $ 1… $ 1… $ 1… $ 3… $ 2… $ 5… $ 5…
…
…
…
… $ 1… $ 1… $ 2… $ 2… $ 4… $ 3… $ 1… $ 8…
…
…
…
…
&
… $ 1… $ 1… $ 2… $ 1… $ 3… $ 3… $ 7… $ 7…
…
…
…
…
…
&
… $ 1… $ 1… $ 3… $ 2… $ 4… $ 3… $ 1… $ 1…
…
…
…
For the nine-month period ended September 30, 2025, reported and adjusted
amounts for the Brokerage Segment include approximately $363 million of
incremental interest income, or approximately $1.05 after-tax, earned on the
cash proceeds associated with the AssuredPartners Financing in December 2024.
For the nine-month period ended September 30, 2026, the pretax impact of
adjustments for the Brokerage, Risk Management, and Corporate Segments totals
$1,413 million , $37 million and $79 million, respectively, and corresponding
adjustment to the provision (benefit) for income taxes was $362 million, $10
million and ($30) million, respectively, relating to these adjustments. A
detailed reconciliation is shown on page 19.
2 of 20
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in
millions):
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 20.
Org…
Rev…
(No…
Base
Com… 9 9
and 3rd Q 3rd Q Mths Mths
Fees 26 25 26 25
──────────────────────────────────────────────────────────────────────────────
Com…
and
fee… $ 3,147 $ 2,573 $ 10,242 $ 7,829
as
rep…
Less
com…
and
fees
from -838 -358 -2,550 -502
acq…
div…
ope…
and
oth…
Lev…
for… — -3 — 48
cur…
tra…
Org…
base
com… $ 2,309 $ 2,212 $ 7,692 $ 7,375
and
fees
Org…
cha…
in
base 4 % 4 %
com…
and
fees
Sup…
Rev…
Sup…
rev… $ 148 $ 117 $ 469 $ 334
as
rep…
Less
sup…
rev…
from
acq… -24 $ -8 -87 -8
div…
ope…
and
oth…
Lev…
for… — — — 2
cur…
tra…
Org…
sup… $ 124 $ 109 $ 382 $ 328
rev…
Org…
cha…
in 14 % 16 %
sup…
rev…
Con…
Rev…
Con…
rev… $ 74 $ 75 $ 280 $ 241
as
rep…
Less
con…
rev…
from
acq… -14 -15 -57 -15
div…
ope…
and
oth…
Lev…
for… — — — 1
cur…
tra…
Org…
con… $ 60 $ 60 $ 223 $ 227
rev…
Org…
cha…
in — % (2 %)
con…
rev…
Tot…
rep…
com…
fee… $ 3,369 $ 2,765 $ 10,991 $ 8,404
sup…
and
con…
rev…
Less
com…
fee…
sup…
rev…
and
con… -876 -381 -2,694 -525
rev…
from
acq…
div…
ope…
and
oth…
Lev…
for… — -3 — 51
cur…
tra…
Tot…
org…
com…
fee…
sup… $ 2,493 $ 2,381 $ 8,297 $ 7,930
rev…
and
con…
rev…
Tot…
org… 5 % 5 %
cha…
Acqui…
Activ…
Number
of
acqui…
closed 3rd Q 9 Mths 9 Mths
* 3rd Q 26 5 25 6 26 19 25 25
──────────────────────────────────────────────────────────────────────────────
Estim…
annua…
reven… $ 102 $ 3,036 $ 209 $ 3,390
acqui…
(in
milli…
* In the third quarter of 2025, 9,000 shares of Gallagher common stock were
issued directly to sellers in connection with tax-free exchange acquisitions. No
shares were issued in connection with tax-free exchange acquisitions in the
third quarter of 2026.
3 of 20
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued)
(dollars in millions):
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 20.
Co…
Ex… 9 9
and 3rd 3rd Mths Mt…
Ra… Q 26 Q 25 26 25
──────────────────────────────────────────────────────────────────────────────
Co…
ex… $ 1,9… $ 1,6… $ 6,1… $ 4,7…
as
re…
Ac… -61 -38 -151 -86
in…
Wo…
and
le… -31 -16 -84 -68
te…
re…
ch…
Ac… -61 -46 -181 -126
ad…
Le…
fo… — 2 — 39
cu…
tr…
Co…
ex… $ 1,7… $ 1,5… $ 5,7… $ 4,5…
as
ad…
Re…
co…
ex…
ra…
us…
re… * 55.5 % 56.4 % 54.6 % 53.1 %
re…
on
pa…
1
and
2
Ad…
co…
ex…
ra…
us…
ad… ** 51.3 % 53.0 % 51.1 % 50.2 %
re…
on
pa…
1
and
2
* Reported third quarter 2026 compensation expense ratio was 0.9 pts lower than
third quarter 2025. This ratio was primarily impacted by higher integration and
acquisition related costs, as well as lower interest income revenues in the
quarter, as third quarter 2025 included interest income earned on cash proceeds
associated with the AssuredPartners Financing in December 2024. These items were
more than offset by lower employee benefits and the roll-in of AssuredPartners,
including the impact of compensation savings related to synergies.
** Adjusted third quarter 2026 compensation expense ratio was 1.7 pts lower than
third quarter 2025. This ratio was primarily impacted by lower interest income
revenues in the quarter, as third quarter 2025 included interest income earned
on cash proceeds associated with the AssuredPartners Financing in December 2024.
This was more than offset by the roll-in of AssuredPartners, including the
impact of compensation savings related to synergies.
Op…
Ex… 9 9
and 3rd 3rd Mths Mths
Ra… Q 26 Q 25 26 25
──────────────────────────────────────────────────────────────────────────────
Op…
ex… $ 508 $ 434 $ 1,5… $ 1,1…
as
re…
Ac… -42 -28 -152 -65
in…
Wo…
and
le… -4 -6 -18 -9
te…
re…
ch…
Le…
fo… — 2 — 13
cu…
tr…
Op…
ex… $ 462 $ 402 $ 1,3… $ 1,0…
as
ad…
Re…
op…
ex…
ra…
us…
re… * 14.6 % 14.8 % 13.9 % 12.7 %
re…
on
pa…
1
and
2
Ad…
op…
ex…
ra…
us…
ad… * 13.4 % 13.7 % 12.4 % 12.0 %
re…
on
pa…
1
and
2
* Reported third quarter 2026 operating expense ratio was 0.2 pts lower than
third quarter 2025. Adjusted third quarter 2026 operating expense ratio was 0.3
pts lower than third quarter 2025. Both ratios were impacted by lower interest
income revenues in the quarter, as third quarter 2025 included interest income
earned on cash proceeds associated with the AssuredPartners Financing in
December 2024, which was more than offset by the roll-in of AssuredPartners,
including the impact of operating expense savings related to synergies.
4 of 20
Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued)
(dollars in millions):
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 20.
Net
Ea…
to
Ad… 9 9
EB… 3rd 3rd Mths Mths
(N… Q 26 Q 25 26 25
──────────────────────────────────────────────────────────────────────────────
Net
ea… $ 515 $ 409 $ 1,… $ 1,…
as
re…
Pr…
for 176 141 643 600
in…
ta…
De… 46 42 140 113
Am… 284 218 849 596
Ch…
in
es… 15 29 36 38
ac…
ea…
pa…
EB… 1,… 839 3,… 3,…
Net
(g…
lo… -13 8 -28 -4
on
di…
Ac… 103 66 303 151
in…
Wo…
and
le… 35 22 102 77
te…
re…
ch…
Ac… 61 46 181 126
ad…
Le…
fo… — -6 — 4
cu…
tr…
EB…
as $ 1,… $ 975 $ 4,… $ 3,…
ad…
Net
ea…
ma…
as
re…
us…
re… 14… % 14… % 16… % 19… %
re…
on
pa…
1
and
2
EB…
ma…
as
ad…
us…
ad… * 35… % 33… % ** 36… % 37… %
re…
on
pa…
1
and
2
* Third quarter 2025 adjusted EBITDAC includes approximately $76 million of
interest income revenues earned on the cash proceeds associated with the
AssuredPartners Financing in December 2024. The interest income in the prior
period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in
acquisitions, favorably impacted the year-over-year change in third quarter
adjusted EBITDAC margin by approximately 0.4%.
** Adjusted EBITDAC for the nine-month period ended September 30, 2025 includes
approximately $363 million of interest income revenues earned on the cash
proceeds associated with the AssuredPartners Financing in December 2024. The
interest income in the prior year, as well as the seasonality of AssuredPartners
and the roll-in of tuck-in acquisitions, unfavorably impacted the year-over-year
change in adjusted EBITDAC margin for the nine-month period ended September 30,
by approximately 2.2%.
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations
(dollars in millions):
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 20.
Orga…
Reve… 3rd Q 3rd Q 9 Mths 9 Mths
(Non… 26 25 26 25
──────────────────────────────────────────────────────────────────────────────
Fees $ 444 $ 390 $ 1,297 $ 1,135
Inte…
perf… 4 3 16 6
bonus
fees
Fees
as 448 393 1,313 1,141
repo…
Less
fees
from
acqu… -13 — -37 -2
dive…
and
other
Leve…
fore… — 4 — 16
curr…
tran…
Orga… $ 435 $ 397 $ 1,276 $ 1,155
fees
Orga…
chan… 10 % 10 %
in
fees
Acquisition
Activity
Number of
acquisitions
closed 3rd Q 26 — 3rd Q 25 — 9 Mths 26 2 9 Mths 25 1
──────────────────────────────────────────────────────────────────────────────
Estimated
annualized
revenues $ — $ — $ 15 $ 38
acquired
(in
millions)
5 of 20
Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations
(continued) (dollars in millions):
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 20.
Co…
Ex… 9 9
and 3rd 3rd Mths Mths
Ra… Q 26 Q 25 26 25
──────────────────────────────────────────────────────────────────────────────
Co…
ex… $ 271 $ 244 $ 809 $ 719
as
re…
Ac… — -1 — -3
in…
Wo…
and
le… -1 -3 -4 -9
te…
re…
ch…
Ac… -2 — -10 -1
ad…
Le…
fo… — 3 — 12
cu…
tr…
Co…
ex… $ 268 $ 243 $ 795 $ 718
as
ad…
Re…
co…
ex…
ra…
us…
re…
re… * 59.3 % 60.6 % 60.5 % 61… %
(b…
re…
on
pa…
1
and
2
Ad…
co…
ex…
ra…
us…
ad…
re… ** 58.6 % 59.7 % 59.4 % 60… %
(b…
re…
on
pa…
1
and
2
* Reported third quarter 2026 compensation expense ratio was 1.3 pts lower than
third quarter 2025. This ratio was primarily impacted by savings related to
headcount controls and employee benefits as well as lesser workforce related
charges.
** Adjusted third quarter 2026 compensation expense ratio was 1.1 pts lower than
third quarter 2025. This ratio was primarily impacted by savings related to
headcount controls and employee benefits.
Op…
Ex… 9 9
and 3rd 3rd Mths Mths
Ra… Q 26 Q 25 26 25
──────────────────────────────────────────────────────────────────────────────
Op…
ex… $ 85 $ 76 $ 246 $ 220
as
re…
Ac… — -1 -2 -3
in…
Wo…
and
le… — -1 — -2
te…
re…
ch…
Le…
fo… — 1 — 2
cu…
tr…
Op…
ex… $ 85 $ 75 $ 244 $ 217
as
ad…
Re…
op…
ex…
ra…
us…
re…
re… * 18.6 % 19.0 % 18.4 % 18… %
(b…
re…
on
pa…
1
and
2
Ad…
op…
ex…
ra…
us…
ad…
re… ** 18.6 % 18.4 % 18.2 % 18… %
(b…
re…
on
pa…
1
and
2
* Reported third quarter 2026 operating expense ratio was 0.4 pts lower than
third quarter 2025. This ratio was primarily impacted by lower integration and
workforce related charges, partially offset by additional investments in
technology.
** Adjusted third quarter 2026 operating expense ratio was 0.2 pts higher than
third quarter 2025. This ratio was primarily impacted by additional investments
in technology.
Net
Ear…
to
Adj… 9 9
EBI… 3rd Q 3rd Q Mths Mths
(No… 26 25 26 25
──────────────────────────────────────────────────────────────────────────────
Net
ear… $ 61 $ 50 $ 168 $ 134
as
rep…
Pro…
for 22 18 61 48
inc…
tax…
Dep… 10 10 30 30
Amo… 7 4 21 16
Cha…
in
est… 1 — 3 1
acq…
ear…
pay…
EBI… 101 82 283 229
Acq… — 2 2 6
int…
Wor…
and
lea… 1 4 4 11
ter…
rel…
cha…
Acq… 2 — 10 1
adj…
Lev…
for… — 1 — 3
cur…
tra…
EBI…
as $ 104 $ 89 $ 299 $ 250
adj…
Net
ear…
mar…
as
rep…
usi…
rep…
rev… 13.3 % 12.3 % 12.6 % 11.4 %
(be…
rei…
on
pag…
1
and
2
EBI…
mar…
as
adj…
usi…
adj…
rev… 22.8 % 21.9 % 22.4 % 21.1 %
(be…
rei…
on
pag…
1
and
2
6 of 20
Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information
(dollars in millions):
See “Information Regarding Non-GAAP Measures” beginning on page 9 of 20.
…
…
…
…
… … …
… … … … …
… … … … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ … $ … $
… 1 … … 1
… 3 … … …
… … … … …
… … … … …
… … … … 2
… — … … …
… … … … …
… 1 … … 1
… — … … 1
… … … … …
$ … $ … $ … $ … $ … $
Nine Months
Components
of Corporate
Segment, as
reported
──────────────────────────────────────────────────────────────────────────────
Interest and
banking $ -496 $ 129 $ -367 $ -480 $ 125 $ -355
costs
Clean -11 4 -7 -6 2 -4
energy-rela…
Acquisition -50 8 -42 -98 8 -90
costs (1)
Corporate -221 144 -77 -241 171 -70
(2)
Reported -778 285 -493 -825 306 -519
nine months
Adjustments
Clean
energy-rela… 5 -2 3 — — —
(3)
Transaction… 36 -6 30 86 -6 80
costs (1)
Legal and
tax-related 30 -20 10 24 -16 8
(4)
Benefit
plan-related 8 -2 6 — — —
(5)
Components
of Corporate
Segment, as
adjusted
Interest and
banking -496 129 -367 -480 125 -355
costs
Clean -6 2 -4 -6 2 -4
energy-rela…
Acquisition -14 2 -12 -12 2 -10
costs
Corporate -183 122 -61 -217 155 -62
(2)
Adjusted $ -699 $ 255 $ -444 $ -715 $ 284 $ -431
nine months
(1) Gallagher incurred transaction-related costs, which include legal,
consulting, employee compensation and other professional fees associated with
completed, future and terminated acquisitions. Adjustments primarily relate to
the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August
2025 and April 2025, respectively.
(2) Corporate pretax loss includes a net unrealized foreign exchange
remeasurement loss of $(9) million in third quarter 2026 and a net unrealized
foreign exchange remeasurement gain of $5 million in third quarter 2025.
Corporate pretax loss includes a net unrealized foreign exchange remeasurement
loss of $(3) million in the nine-month period ended September 30, 2026 and a net
unrealized foreign exchange remeasurement loss of $(43) million in the nine-
month period ended September 30, 2025.
7 of 20
(3) Adjustments in the nine-month period ended September 30, 2026 include the
write-down of a clean energy-related investment.
(4) Adjustments in third quarter 2026 and 2025 and the nine-month periods ended
September 30, 2026 and 2025 include costs associated with legal and tax matters.
(5) Adjustments in the nine-month period ended September 30, 2026 include costs
associated with the termination of the Gallagher US defined pension plan and
other benefit plan changes.
Interest, banking costs and debt
- At September 30, 2026, Gallagher had $9,550 million of borrowings from public
debt, $2,683 million of borrowings from private placements and $630 million of
borrowings under its line of credit facility. In addition, Gallagher had $228
million outstanding under a revolving loan facility that provides funding for
premium finance receivables, which are fully collateralized by the underlying
premiums held by insurance carriers, and as such are excluded from its debt
covenant computations, as applicable.
Clean energy-related
- For 2026, this consists of operating results related to Gallagher’s
investments in new clean energy projects, primarily fusion and carbon
sequestration projects.
Acquisition costs
- Consists mostly of external professional fees and other due diligence costs
related to acquisitions. On occasion, Gallagher enters into forward currency
hedges for the purchase price of committed, but not yet funded, acquisitions
with funding requirements in currencies other than the U.S. dollar. The gains or
losses, if any, associated with these hedge transactions are also included in
acquisition costs.
Corporate
- Consists of overhead allocations mostly related to corporate staff
compensation, other corporate-level activities, and net unrealized foreign
exchange remeasurement. In addition, it includes the tax expense related to the
partial taxation of foreign earnings, nondeductible executive compensation and
entertainment expenses, the tax benefit from the vesting of employee equity
awards, as well as other permanent or discrete tax items not reflected in the
provision for income taxes in the Brokerage and Risk Management segments.
Income taxes
- Gallagher allocates the provision for income taxes to its Brokerage and Risk
Management segments using the local country statutory rates. Gallagher’s
consolidated effective tax rates for the quarters ended September 30, 2026 and
2025 were 21.2% and 21.1%, respectively.
AssuredPartners
- In fourth quarter 2024 and first quarter 2025, Gallagher raised a total of
approximately $14 billion of cash via a follow-on common stock offering and
senior notes issuance to fund the AssuredPartners acquisition (collectively, the
AssuredPartners Financing), which was completed in third quarter 2025 for
approximately $14 billion.
Share repurchases
- In the third quarter of 2026, Gallagher repurchased approximately 0.4 million
shares of its common stock for approximately $100 million. For the nine-month
period ended September 30, 2026, Gallagher repurchased approximately 2.7 million
shares of its common stock for approximately $580 million.
Webcast Conference Call
- Gallagher will host a webcast conference call on Thursday, October 29, 2026 at
5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J.
Gallagher & Co. - Events & Presentations (ajg.com). The call will be available
for replay at such website for at least 90 days.
About Arthur J. Gallagher & Co.
Arthur J. Gallagher & Co., a global insurance brokerage, risk management and
consulting services firm, is headquartered in Rolling Meadows, Illinois.
Gallagher provides these services in approximately 130 countries around the
world through its owned operations and a network of correspondent brokers and
consultants.
Information Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. When used in this press
release, the words “anticipates,” “believes,” “contemplates,” “see,” “should,”
“could,” “will,” “estimates,” “expects,” “intends,” “plans” and variations
thereof and similar expressions, are intended to identify forward-looking
statements. Examples of forward-looking statements include, but are not limited
to, anticipated future results or performance of any segment or Gallagher as a
whole; acquisition rollover revenues; statements regarding changes in its
expenses in the next several quarters; future capital structure changes,
including debt levels from time to time; the impact of foreign currency on its
results; integration costs; workforce and lease termination costs; amortization
of intangibles; depreciation; change in estimated earnout payables; effective
tax rate; earnings from continuing operations attributable to noncontrolling
interests; the premium rate environment and the state of insurance markets; and
the economic environment.
8 of 20
Gallagher’s actual results may differ materially from those contemplated by the
forward-looking statements. Readers are therefore cautioned against relying on
any of the forward-looking statements, which are neither statements of
historical fact nor guarantees or assurances of future performance.
Important factors that could cause actual results to differ materially from
those in the forward-looking statements include global economic and geopolitical
events, including, among others, fluctuations in interest and inflation rates;
protectionism such as tariffs and trade disruptions; a recession or economic
downturn; a U.S. government shutdown; political instability, such as global
armed conflicts; its actual acquisition opportunities, including closing risks
related to pending acquisitions; risks with respect to larger acquisitions such
as AssuredPartners, the largest acquisition in its history, including risks
related to its ability to successfully integrate operations and the possibility
that its assumptions may be inaccurate resulting in unforeseen obligations or
liabilities and failure to realize expected benefits of such acquisitions;
damage to its reputation due to its failure to uphold its culture or negative
perceptions or publicity, including as a result of amplifying effects that the
Internet and social media may have on such perceptions; reputational issues
related to its sustainability-related activities, including potential backlash
against such activities, and compliance with increasingly complex climate- and
other sustainability-related regulations, such as risks related to
“greenwashing” and “greenhushing”; cybersecurity-related risks; its ability to
apply technology, data analytics and artificial intelligence effectively to its
business and potential increased costs resulting from such activities; risks
associated with the use of artificial intelligence in its business operations,
including regulatory, data privacy, cybersecurity, errors and omissions,
intellectual property and competition risks; risks related to “AI-washing”;
heightened competition for talent and increased compensation costs; disasters or
other business interruptions, including with respect to its operations in India;
risks related to its international operations, such as those related to
regulatory, tax, sustainability, sanctions and anti-corruption compliance and
increased scrutiny of the use of off-shore centers of excellence such as those
we operate in India and elsewhere; changes to data privacy and protection laws
and regulations; foreign exchange rates; changes in accounting standards;
changes in premium rates and in insurance markets generally, including the
impact of large natural or man-made events; tax, environmental or other
compliance risks related to its legacy clean energy investments; its inability
to receive dividends or other distributions from subsidiaries; and changes in
the insurance brokerage industry’s competitive landscape.
Please refer to Gallagher’s filings with the Securities and Exchange Commission,
including Item 1A, “Risk Factors,” of its Annual Report on Form 10-K for the
fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports
on Form 10-Q for a more detailed discussion of these and other factors that
could impact its forward-looking statements. Any forward-looking statement made
by Gallagher in this press release speaks only as of the date on which it is
made. Except as required by applicable law, Gallagher does not undertake to
update the information included herein or the corresponding earnings release
posted on Gallagher’s website.
Information Regarding Non-GAAP Measures
In addition to reporting financial results in accordance with GAAP, this press
release provides information regarding EBITDAC, EBITDAC margin, adjusted
EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted
(adjusted EPS), adjusted revenue, adjusted compensation and operating expenses,
adjusted compensation expense ratio, adjusted operating expense ratio and
organic revenue. These measures are not in accordance with, or an alternative
to, the GAAP information provided in this press release. Gallagher’s management
believes that these presentations provide useful information to management,
analysts and investors regarding financial and business trends relating to
Gallagher’s results of operations and financial condition or because they
provide investors with measures that its chief operating decision maker uses
when reviewing Gallagher’s performance. See further below for definitions and
additional reasons each of these measures is useful to investors. Gallagher’s
industry peers may provide similar supplemental non-GAAP information with
respect to one or more of these measures, although they may not use the same or
comparable terminology and may not make identical adjustments. The non-GAAP
information provided by Gallagher should be used in addition to, but not as a
substitute for, the GAAP information provided. As disclosed in its most recent
Proxy Statement, Gallagher makes determinations regarding certain elements of
executive officer incentive compensation, performance share awards and annual
cash incentive awards, partly on the basis of measures related to adjusted
EBITDAC.
Adjusted Non-GAAP presentation
- Gallagher believes that the adjusted non-GAAP presentations of the current and
prior period information presented in this earnings release provide stockholders
and other interested persons with useful information regarding certain financial
metrics of Gallagher that may assist such persons in analyzing Gallagher’s
operating results as they develop a future earnings outlook for Gallagher. The
after-tax amounts related to the adjustments were computed using the normalized
effective tax rate for each respective period. See pages 17 to 20 for a
reconciliation of the adjustments made to income taxes.
Adjusted measures
- Revenues (for the Brokerage segment), revenues before reimbursements (for the
Risk Management segment), net earnings, compensation expense and operating
expense, respectively, are each adjusted to exclude the following, as
applicable:
9 of 20
• Net gains (losses) on divestitures, which are primarily net proceeds received
related to sales of books of business and other divestiture transactions, such
as the disposal of a business through sale or closure.
• Acquisition integration costs, which include costs related to certain large
acquisitions (including the acquisitions of the Willis Towers Watson treaty
reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance
Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope
of the usual tuck-in strategy, not expected to occur on an ongoing basis in the
future once Gallagher fully assimilates the applicable acquisition. These costs
are typically associated with redundant workforce, compensation expense related
to amortization of certain retention bonus arrangements, extra lease space,
duplicate services and external costs incurred to assimilate the acquisition
into its IT-related systems.
• Transaction-related costs, which are associated with completed, future and
terminated acquisitions. Costs primarily relate to the acquisitions of
AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025,
respectively. These include costs related to regulatory filings, legal and
accounting services, insurance and incentive compensation.
• Workforce-related charges, which primarily include severance costs (either
accrued or paid) related to employee terminations and other costs associated
with redundant workforce.
• Lease termination-related charges, which primarily include costs related to
terminations of real estate leases and abandonment of leased space.
• Acquisition-related adjustments principally relate to changes in estimated
acquisition earnout payables adjustments and acquisition related compensation
charges. In addition, these adjustments may from time to time include changes in
balance sheet estimates arising from conforming accounting principles, purchase-
related true-ups and other balance sheet adjustments made after the closing
date.
• Amortization of intangible assets, which reflects the amortization of
customer/expiration lists, non-compete agreements, trade names and other
intangible assets acquired through Gallagher’s merger and acquisition strategy,
the impact to amortization expense of acquisition valuation adjustments to these
assets as well as non-cash impairment charges.
• The impact of foreign currency translation, as applicable. The amounts
excluded with respect to foreign currency translation are calculated by applying
current year foreign exchange rates to the same period in the prior year.
• Effective income tax rate impact, which levelizes the prior year for the
change in current year tax rates.
• Clean energy-related, which represents the impact of adjustments in first
quarter 2026 related to the write-down of a clean energy-related investment.
• Legal and tax-related, which represents the impact of adjustments in second
quarter 2026 and third quarter 2025 related to costs associated with legal and
tax matters.
• B enefit plan-related, which represents the impact of adjustments in second
quarter 2026 related to costs associated with the termination of the Gallagher
US defined pension plan and other benefit plan changes.
Adjusted ratios -
Adjusted compensation expense and adjusted operating expense ratios are each
expense divided by adjusted revenues.
Non-GAAP Earnings Measures
•
EBITDAC and EBITDAC margin
- EBITDAC is net earnings before interest, income taxes, depreciation,
amortization and the change in estimated acquisition earnout payables and
EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment)
and revenues before reimbursements (for the Risk Management segment). These
measures for the Brokerage and Risk Management segments provide a meaningful
representation of Gallagher’s operating performance for the overall business and
provide a meaningful way to measure its financial performance on an ongoing
basis.
• EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is
EBITDAC adjusted to exclude net gains (losses) on divestitures, acquisition
integration costs, workforce related charges, lease termination related charges,
acquisition related adjustments, transaction related costs, and the period-over-
period impact of foreign currency translation, as applicable, (and for the
Corporate segment, the clean energy related adjustments described above) and
Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues
(defined above). These measures for the Brokerage and Risk Management segments
provide a meaningful representation of Gallagher’s operating performance and are
also presented to improve the comparability of its results between periods by
eliminating the impact of the items that have a high degree of variability.
•
EPS, as Adjusted and Net Earnings, as Adjusted
- Adjusted net earnings have been adjusted to exclude the after-tax impact of
net gains (losses) on divestitures, acquisition integration costs, the impact of
foreign currency translation, workforce related charges, lease termination
related charges, acquisition related adjustments, transaction related costs,
amortization of intangible assets, and effective income tax rate impact, as
applicable. Adjusted EPS is Adjusted Net
10 of 20
Earnings divided by diluted weighted average shares outstanding. This measure
provides a meaningful representation of Gallagher’s operating performance (and
as such should not be used as a measure of Gallagher’s liquidity), and for the
overall business is also presented to improve the comparability of its results
between periods by eliminating the impact of the items that have a high degree
of variability.
Organic Revenues (a non-GAAP measure) -
Organic revenue change measures the year-over-year percentage change in organic
revenue. For the Brokerage segment, organic revenue consists of base commission
and fee revenues, supplemental revenues and contingent revenues, excluding the
first twelve months of such revenues generated from acquisitions and such
revenues related to divested operations, which include disposals of a business
through sale or closure, estimate changes, run-off of a business and the
restructuring and/or repricing of programs and products, in each year presented.
Because the AssuredPartners acquisition closed in the middle of third quarter
2025 (on August 18, 2025), organic revenue for the three-month and nine-month
periods ended September 30, 2026 excludes all AssuredPartners revenues,
including revenues earned after the first anniversary of the acquisition, and
the comparable 2025 periods likewise exclude AssuredPartners revenues. Such
revenues are excluded from organic revenues in order to help interested persons
analyze the revenue growth associated with the operations that were a part of
Gallagher in both the current and prior period. In order to improve the
comparability of Gallagher’s results between periods, we further exclude the
period-over-period impact of foreign currency translation; revenue from certain
large life product sales within Gallagher’s Executive Life and Benefits practice
group (which are typically large singular transactions with a high degree of
variability in amount and timing); and revenue attributable to changes in
assumptions used to calculate estimated deferred revenues, which impact the
quarterly timing of revenues during the annual contract period. For the Risk
Management segment, organic revenue consists of fee revenues excluding the first
twelve months of such revenues generated from acquisitions and such revenues
related to divested operations in each period presented. In order to improve the
comparability of Gallagher’s results between periods, we further exclude the
period-over-period impact of foreign currency translation.
These revenue items are excluded from organic revenues in order to determine a
comparable, but non-GAAP, measurement of revenue growth that is associated with
the revenue sources that are expected to continue in the current year and
beyond, as well as eliminating the impact of the items that have a high degree
of variability. Gallagher has historically viewed organic revenue growth as an
important indicator when assessing and evaluating the performance of its
Brokerage and Risk Management segments. Gallagher also believes that using this
non-GAAP measure allows readers of its financial statements to measure, analyze
and compare the growth from its Brokerage and Risk Management segments in a
meaningful and consistent manner.
Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press
release includes tabular reconciliations to the most comparable GAAP measures,
as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted
EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for
organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and
Risk Management segments), for adjusted compensation and operating expenses and
adjusted EBITDAC margin (on pages 4, 5 and 6, respectively, for the Brokerage
and Risk Management segments).
11 of 20
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions)
3rd Q 3rd Q 9 Mths 9 Mths
Ended Ended Ended Ended
Brokera… Sept 30, Sept 30, Sept 30, Sept 30,
Segment 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Commis… $ 2,371 $ 1,908 $ 7,936 $ 5,965
Fees 776 665 2,306 1,864
Supple… 148 117 469 334
revenu…
Contin… 74 75 280 241
revenu…
Intere…
income,
premium
finance 104 157 277 619
revenu…
and
other
income
Total 3,473 2,922 11,268 9,023
revenu…
Compen… 1,929 1,649 6,157 4,792
Operat… 508 434 1,565 1,149
Deprec… 46 42 140 113
Amorti… 284 218 849 596
Change
in
estima… 15 29 36 38
acquis…
earnout
payabl…
Expens… 2,782 2,372 8,747 6,688
Earnin…
before 691 550 2,521 2,335
income
taxes
Provis…
for 176 141 643 600
income
taxes
Net 515 409 1,878 1,735
earnin…
Net
earnin…
attrib… 3 1 4 6
to
noncon…
intere…
Net
earnin…
attrib… $ 512 $ 408 $ 1,874 $ 1,729
to
contro…
intere…
EBITDAC
Net $ 515 $ 409 $ 1,878 $ 1,735
earnin…
Provis…
for 176 141 643 600
income
taxes
Deprec… 46 42 140 113
Amorti… 284 218 849 596
Change
in
estima… 15 29 36 38
acquis…
earnout
payabl…
EBITDAC $ 1,036 $ 839 $ 3,546 $ 3,082
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
12 of 20
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions)
3rd Q 3rd Q 9 Mths 9 Mths
Risk Ended Ended Ended Ended
Managem… Sept 30, Sept 30, Sept 30, Sept 30,
Segment 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Fees $ 448 $ 393 $ 1,313 $ 1,141
Intere…
income
and 9 9 25 27
other
income
Revenu…
before 457 402 1,338 1,168
reimbu…
Reimbu… 46 40 136 122
Total 503 442 1,474 1,290
revenu…
Compen… 271 244 809 719
Operat… 85 76 246 220
Reimbu… 46 40 136 122
Deprec… 10 10 30 30
Amorti… 7 4 21 16
Change
in
estima… 1 — 3 1
acquis…
earnout
payabl…
Expens… 420 374 1,245 1,108
Earnin…
before 83 68 229 182
income
taxes
Provis…
for 22 18 61 48
income
taxes
Net 61 50 168 134
earnin…
Net
earnin…
attrib… — — — —
to
noncon…
intere…
Net
earnin…
attrib… $ 61 $ 50 $ 168 $ 134
to
contro…
intere…
EBITDAC
Net $ 61 $ 50 $ 168 $ 134
earnin…
Provis…
for 22 18 61 48
income
taxes
Deprec… 10 10 30 30
Amorti… 7 4 21 16
Change
in
estima… 1 — 3 1
acquis…
earnout
payabl…
EBITDAC $ 101 $ 82 $ 283 $ 229
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
13 of 20
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions)
3rd Q 3rd Q 9 Mths 9 Mths
Ended Ended Ended Ended
Corpora… Sept 30, Sept 30, Sept 30, Sept 30,
Segment 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Other
gain $ — $ 1 $ -5 $ 1
(loss)
Total — 1 -5 1
revenu…
Compen… 37 39 117 122
Operat… 52 71 156 221
Intere… 168 161 494 477
Deprec… 2 2 6 6
Expens… 259 273 773 826
Loss
before -259 -272 -778 -825
income
taxes
Benefit
for -89 -86 -285 -306
income
taxes
Net -170 -186 -493 -519
loss
Net
loss
attrib… — — — —
to
noncon…
intere…
Net
loss
attrib… $ -170 $ -186 $ -493 $ -519
to
contro…
intere…
EBITDAC
Net $ -170 $ -186 $ -493 $ -519
loss
Benefit
for -89 -86 -285 -306
income
taxes
Intere… 168 161 494 477
Deprec… 2 2 6 6
EBITDAC $ -89 $ -109 $ -278 $ -342
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
14 of 20
Arthur J. Gallagher & Co.
Reported Statement of Earnings and EBITDAC - 3rd Quarter September 30
(Unaudited - in millions except per share data)
3rd Q 3rd Q 9 Mths 9 Mths
Ended Ended Ended Ended
Total Sept 30, Sept 30, Sept 30, Sept 30,
Company 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Commis… $ 2,371 $ 1,908 $ 7,936 $ 5,965
Fees 1,224 1,058 3,619 3,005
Supple… 148 117 469 334
revenu…
Contin… 74 75 280 241
revenu…
Intere…
income,
premium
finance 113 167 297 647
revenu…
and
other
income
Revenu…
before 3,930 3,325 12,601 10,192
reimbu…
Reimbu… 46 40 136 122
Total 3,976 3,365 12,737 10,314
revenu…
Compen… 2,237 1,932 7,083 5,633
Operat… 645 581 1,967 1,590
Reimbu… 46 40 136 122
Intere… 168 161 494 477
Deprec… 58 54 176 149
Amorti… 291 222 870 612
Change
in
estima… 16 29 39 39
acquis…
earnout
payabl…
Expens… 3,461 3,019 10,765 8,622
Earnin…
before 515 346 1,972 1,692
income
taxes
Provis…
for 109 73 419 342
income
taxes
Net 406 273 1,553 1,350
earnin…
Net
earnin…
attrib… 3 1 4 6
to
noncon…
intere…
Net
earnin…
attrib… $ 403 $ 272 $ 1,549 $ 1,344
to
contro…
intere…
Diluted
net
earnin… $ 1.55 $ 1.04 $ 5.97 $ 5.16
per
share
Divide…
declar… $ 0.70 $ 0.65 $ 2.10 $ 1.95
per
share
EBITDAC
Net $ 406 $ 273 $ 1,553 $ 1,350
earnin…
Provis…
for 109 73 419 342
income
taxes
Intere… 168 161 494 477
Deprec… 58 54 176 149
Amorti… 291 222 870 612
Change
in
estima… 16 29 39 39
acquis…
earnout
payabl…
EBITDAC $ 1,048 $ 812 $ 3,551 $ 2,969
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
15 of 20
Arthur J. Gallagher & Co.
Consolidated Balance Sheet
(Unaudited - in millions)
Sept 30, 2026 Dec 31, 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 1,213 $ 1,396
Fiduciary assets (includes fiduciary
cash of $7,596 in 2026 and $7,142 in 34,345 26,899
2025)
Accounts receivable, net 5,977 5,175
Other current assets 786 886
Total current assets 42,321 34,356
Fixed assets - net 757 789
Deferred income taxes 45 43
Other noncurrent assets 1,744 1,602
Right-of-use assets 610 598
Goodwill 23,385 22,593
Amortizable intangible assets - net 10,202 10,684
Total assets $ 79,064 $ 70,665
Fiduciary liabilities $ 34,345 $ 26,899
Accrued compensation and other
current 3,776 4,017
liabilities
Deferred revenue - current 839 737
Premium financing debt 228 226
Corporate related borrowings - 1,008 640
current
Total current liabilities 40,196 32,519
Corporate related borrowings - 11,735 12,104
noncurrent
Deferred revenue - noncurrent 189 155
Lease liabilities - noncurrent 518 515
Other noncurrent liabilities
(includes
tax credit carryforwards of $615 in 2,355 2,025
2026
and $713 in 2025)
Total liabilities 54,993 47,318
Stockholders' equity:
Common stock - issued and outstanding 256 257
Capital in excess of par value 17,584 17,783
Retained earnings 6,809 5,806
Accumulated other comprehensive loss -611 -525
Total controlling interests 24,038 23,321
stockholders' equity
Noncontrolling interests 33 26
Total stockholders' equity 24,071 23,347
Total liabilities and stockholders' $ 79,064 $ 70,665
equity
16 of 20
Arthur J. Gallagher & Co.
Other Information
(Unaudited - data is rounded where indicated)
3rd Q 3rd Q 9 Mths 9
Ended Ended Ended Mths
OTHER Sept Sept Sept Ended
INFO… 30, 30, 30, Sept
2026 2025 2026 30,
2025
Basic
weig…
aver… 256,6… 256,6… 256,8… 255,8…
shar…
outs…
(000…
Dilu…
weig…
aver… 259,3… 260,4… 259,3… 260,0…
shar…
outs…
(000…
Numb…
of
comm…
shar…
outs… 256,4… 256,8…
at
end
of
peri…
(000…
Work…
at
end
of
peri…
(inc…
acqu…
Brok… 57,587 55,722
Risk 11,454 10,669
Mana…
Total 74,614 71,059
Comp…
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings
per Share (Unaudited)
(Unaudited - in millions except per share data)
Net Net
3… Ea… Ear… Dil…
Q Ea… Pro… (L… (Lo… Net
E… (L… (Be… At… Att… Ear…
S… Be… for Net to to (Lo…
3… In… Inc… Ea… No… Con… per
2… Ta… Tax… (L… In… Int… Sha…
──────────────────────────────────────────────────────────────────────────────
B…
as $ 691 $ 176 $ 515 $ 3 $ 512 $ 1.…
r…
N…
(… -13 -3 -10 — -10 -0…
on
d…
A… 103 26 77 — 77 0.…
i…
W…
a… 35 8 27 — 27 0.…
l…
t…
A… 68 18 50 — 50 0.…
a…
A…
of 284 72 212 — 212 0.…
i…
a…
B…
as $ 1,… $ 297 $ 871 $ 3 $ 868 $ 3.…
a…
R…
M… $ 83 $ 22 $ 61 $ — $ 61 $ 0.…
as
r…
W…
a… 1 — 1 — 1 —
l…
t…
A… 2 1 1 — 1 0.…
a…
A…
of 7 2 5 — 5 0.…
i…
a…
R…
M… $ 93 $ 25 $ 68 $ — $ 68 $ 0.…
as
a…
C…
as $ -2… $ -89 $ -170 $ — $ -1… $ -0…
r…
T… 17 3 14 — 14 0.…
c…
L…
a… -1 — -1 — -1 —
t…
C…
as $ -2… $ -86 $ -157 $ — $ -1… $ -0…
a…
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
17 of 20
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings
per Share (Unaudited) - Continued
(Unaudited - in millions except per share data)
Net Net
3… Ea… Ear… Dil…
Q Ea… Pro… (L… (Lo… Net
E… (L… (Be… At… Att… Ear…
S… Be… for Net to to (Lo…
3… In… Inc… Ea… No… Con… per
2… Ta… Tax… (L… In… Int… Sha…
──────────────────────────────────────────────────────────────────────────────
B…
as $ 550 $ 141 $ 409 $ 1 $ 408 $ 1.…
r…
N…
l… 8 2 6 — 6 0.…
on
d…
A… 66 16 50 — 50 0.…
i…
W…
a… 22 6 16 — 16 0.…
l…
t…
A… 63 16 47 — 47 0.…
a…
A…
of 218 55 163 — 163 0.…
i…
a…
E…
i… — -2 2 — 2 0.…
t…
i…
L…
f… -6 -1 -5 — -5 -0…
c…
t…
B…
as $ 921 $ 233 $ 688 $ 1 $ 687 $ 2.…
a…
R…
M… $ 68 $ 18 $ 50 $ — $ 50 $ 0.…
as
r…
A… 2 1 1 — 1 0.…
i…
W…
a… 4 1 3 — 3 0.…
l…
t…
A…
of 4 1 3 — 3 0.…
i…
a…
L…
f… 1 — 1 — 1 —
c…
t…
R…
M… $ 79 $ 21 $ 58 $ — $ 58 $ 0.…
as
a…
C…
as $ -2… $ -86 $ -186 $ — $ -1… $ -0…
r…
T… 34 -2 36 — 36 0.…
c…
L…
a… 24 16 8 — 8 0.…
t…
C…
as $ -2… $ -72 $ -142 $ — $ -1… $ -0…
a…
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
18 of 20
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings
per Share (Unaudited) - Continued
(Unaudited - in millions except per share data)
Net Net
9 Ear… Ea… Di…
M… Ea… Pr… (Lo… (L… Net
E… (L… (B… Att… At… Ea…
S… Be… for Net to to (L…
3… In… In… Ear… Non… Co… per
2… Ta… Ta… (Lo… Int… In… Sh…
──────────────────────────────────────────────────────────────────────────────
B…
as $ 2,… $ 643 $ 1,… $ 4 $ 1,8… $ 7.22
r…
N…
(… -28 -7 -21 — -21 -0.…
on
d…
A… 303 77 226 — 226 0.87
i…
W…
a… 102 25 77 — 77 0.30
l…
t…
A… 187 49 138 — 138 0.53
a…
A…
of 849 218 631 — 631 2.43
i…
a…
B…
as $ 3,… $ 1,… $ 2,… $ 4 $ 2,9… $ 11.…
a…
R…
M… $ 229 $ 61 $ 168 $ — $ 168 $ 0.65
as
r…
A… 2 — 2 — 2 0.01
i…
W…
a… 4 1 3 — 3 0.01
l…
t…
A… 10 3 7 — 7 0.03
a…
A…
of 21 6 15 — 15 0.06
i…
a…
R…
M… $ 266 $ 71 $ 195 $ — $ 195 $ 0.76
as
a…
C…
as $ -7… $ -2… $ -4… $ — $ -493 $ -1.…
r…
T… 36 6 30 — 30 0.12
c…
L…
t…
a… 38 22 16 — 16 0.06
b…
p…
C… 5 2 3 — 3 0.01
e…
C…
as $ -6… $ -2… $ -4… $ — $ -444 $ -1.…
a…
See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20.
19 of 20
Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings
per Share (Unaudited) - Continued
(Unaudited - in millions except per share data)
Net Net
9 Ea… Ear… Dil…
M… Ea… Pr… (L… (Lo… Net
E… (L… (B… At… Att… Ear…
S… Be… for Net to to (Lo…
3… In… In… Ea… No… Con… per
2… Ta… Ta… (L… In… Int… Sha…
──────────────────────────────────────────────────────────────────────────────
B…
as $ 2,… $ 600 $ 1,7… $ 6 $ 1,… $ 6.…
r…
N…
(… -4 -1 -3 — -3 -0…
on
d…
A… 151 38 113 — 113 0.…
i…
W…
a… 77 19 58 — 58 0.…
l…
t…
A… 129 32 97 — 97 0.…
a…
A…
of 596 151 445 — 445 1.…
i…
a…
E…
i… — -3 3 — 3 0.…
t…
i…
L…
f… 1 — 1 — 1 0.…
c…
t…
B…
as $ 3,… $ 836 $ 2,4… $ 6 $ 2,… $ 9.…
a…
R…
M… $ 182 $ 48 $ 134 $ — $ 134 $ 0.…
as
r…
A… 6 3 3 — 3 0.…
i…
W…
a… 11 2 9 — 9 0.…
l…
t…
A… 1 — 1 — 1 0.…
a…
A…
of 16 4 12 — 12 0.…
i…
a…
L…
f… 3 — 3 — 3 0.…
c…
t…
R…
M… $ 219 $ 57 $ 162 $ — $ 162 $ 0.…
as
a…
C…
as $ -8… $ -306 $ -519 $ — $ -5… $ -2…
r…
T… 86 6 80 — 80 0.…
c…
L…
a… 24 16 8 — 8 0.…
t…
C…
as $ -7… $ -284 $ -431 $ — $ -4… $ -1…
a…
See "Information Regarding Non-GAAP Measures" on page 9 of 20.
Contact:
Sara Walsh
630-285-3593 or sara_walsh@ajg.com
20 of 20