Arthur J Gallagher reveals Q3 2021 outcomes
As the season of financial results progresses, Arthur J Gallagher (AJG) steps on the scene to show how it went in the third quarter of 2021. It was a strong quarter for the group, with its core brokerage and risk management segments together growing 17% in revenue, of which 10% was organic revenue growth.
The brokerage segment alone recorded net income (adjusted) of $ 280.6 million compared to $ 238.9 million in the third quarter of 2020 and revenue (before reimbursements) of $ 1,495.4 million compared to $ 1,309 million Dollars in the previous year. For the nine months ended September 30, 2021, this segment reported net income (adjusted) of $ 915.3 million compared to $ 786.7 million in the year-ago period and revenue (before reimbursements) of 4,491.2 million. $ 4,034.1 million last year.
AJG’s risk management arm had net income (adjusted) of $ 25.9 million and sales (before reimbursements) of $ 248 million for the quarter. For the nine months ended September 30, 2021, the segment reported net income (adjusted) of $ 71.8 million and revenue (before reimbursements) of $ 713.2 million.
On a adjusted basis, AJG’s overall brokerage and risk management results showed great strength with revenues (before reimbursements) of up to $ 1,743.4 million from $ 1,512.6 million in the third quarter of 2020 and net income of 306.5 million For the nine months ended September 2021, the combined segments generated revenue (before reimbursements) of $ 5,204.4 million compared to $ 4,651.0 million -Dollars in the same period last year and net income of $ 987.1 million compared to $ 840.1 million.
Commenting on the results, AJG Chairman, President and CEO J. Patrick Gallagher Jr said, “We delivered an excellent third quarter … closing in the fourth quarter of 2021.”
Global P / C rates remain firm and the improved economic activity leads to additional insured exposures, positive policy affirmations and other favorable medium-term policy adjustments. Overall, he found that the P / C premium increases that AJG saw in the third quarter of 2021 were in line with the first half of the year.
“Our customers are healthy and growth-oriented,” he said. “Our team is dedicated, motivated and well positioned to support customers and prospects in mastering their growth challenges in a difficult insurance environment.”