Arthur J. Gallagher & Co. (AJG) 10-Year Financial Performance & Capital Metrics

AJG • • Insurance & Managed Care

Financial ServicesInsurance BrokersFull-Service Insurance BrokersRegional Full-Service Brokers

AboutArthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, third-party claims settlement, and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. It operates through Brokerage and Risk Management segments. The Brokerage segment consists of retail and wholesale insurance brokerage operations; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverage's to underwriting enterprises. This segment also performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers brokerage and consulting services to businesses and organizations, including commercial, not-for-profit, and public entities, as well as individuals in the areas of insurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services to enterprises and public entities; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent insurance brokers and consultants. It serves commercial, industrial, public, religious, and not-for-profit entities. The company was incorporated in 1927 and is headquartered in Rolling Meadows, Illinois.Show more

Revenue $11.55B +14.7%
Combined Ratio 80.25% -1.6%
Net Income $1.46B +50.9%
Return on Equity 9.44% -2.6%
Medical Cost Ratio 57.78% -0.1%
Operating Margin 19.75% +7.0%
Net Margin 12.66% +31.5%
ROA 2.52% +17.2%
Equity / Assets 31.41% +49.9%
Book Value per Share 90.13 +82.8%
Tangible BV/Share 15.09 +162.5%
Debt/Equity 0.67 -13.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Profitable underwriting: 80.2% combined ratio
✓Strong 5Y profit CAGR of 16.9%
✓11 consecutive years of dividend growth
✓Low loss ratio of 57.8%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y9.59%

5Y10.17%

3Y12.07%

TTM13.77%

Profit (Net Income) CAGR

10Y17.03%

5Y16.94%

3Y17.28%

TTM43.92%

EPS CAGR

10Y12.73%

5Y13.16%

3Y14.33%

TTM28.99%

ROCE

10Y Avg8.21%

5Y Avg9.28%

3Y Avg9.34%

Latest8.22%

Peer Comparison

Regional Full-Service Brokers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TWFGTWFG, Inc. Common Stock	396.31M	26.37	146.50	16.01%	3.03%	2.23%	9.41%	0.04
AJGArthur J. Gallagher & Co.	65.78B	256.15	39.23	14.72%	13.16%	7.12%	3.71%	0.67
ERIEErie Indemnity Company	13.07B	283.07	24.66	16.72%	15.6%	28.06%	3.72%	0.00
BROBrown & Brown, Inc.	27.23B	79.75	23.05	12.05%	18.75%	8.04%	4.01%	0.63
RELIReliance Global Group, Inc.	5.12M	0.52	-0.06	2.35%	-53.39%	-103.83%		4.35

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	5.39B	5.68B	6.25B	6.92B	7.12B	7.01B	8.21B	8.55B	10.07B	11.55B
Revenue Growth %	0.17%	0.05%	0.1%	0.11%	0.03%	-0.02%	0.17%	0.04%	0.18%	0.15%
Medical Costs & Claims+	3.78B	4.08B	4.52B	4.98B	4.83B	4.5B	5.23B	4.95B	5.83B	6.68B
Medical Cost Ratio %	-	-	-	-	-	-	-	-	-	-
Gross Profit+	1.61B	1.6B	1.73B	1.94B	2.29B	2.51B	2.98B	3.6B	4.25B	4.88B
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	0.15%	-0.01%	0.08%	0.12%	0.18%	0.1%	0.19%	0.21%	0.18%	0.15%
Operating Expenses+	1.17B	1.13B	1.21B	1.32B	1.54B	1.47B	1.64B	1.93B	2.39B	2.6B
OpEx / Revenue %	-	-	-	-	-	-	-	-	-	-
Depreciation & Amortization	334.2M	350.8M	385.8M	419M	474.4M	562.4M	566.3M	599.6M	696.5M	842.3M
Combined Ratio %	-	-	-	-	-	-	-	-	-	-
Operating Income+	437.1M	475.5M	511.4M	617.2M	745.9M	1.04B	1.34B	1.67B	1.86B	2.28B
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.1%	0.09%	0.08%	0.21%	0.21%	0.39%	0.29%	0.25%	0.12%	0.23%
EBITDA+	771.3M	826.3M	897.2M	1.04B	1.22B	1.6B	1.9B	2.27B	2.56B	3.12B
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
Interest Expense	103M	109.8M	124.1M	138.4M	179.8M	196.4M	226.1M	256.9M	296.7M	381.3M
Non-Operating Income	40.6M	32.1M	27.5M	-600K	-60M	-27.1M	135.8M	83M	377.3M	26M
Pretax Income+	293.5M	333.6M	359.8M	479.4M	626.1M	870.9M	975.1M	1.33B	1.19B	1.87B
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	-95.6M	-96.7M	-157.1M	-196.5M	-89.7M	12.8M	20.1M	211M	219.1M	404.4M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	356.8M	396.8M	481.3M	633.5M	668.8M	818.8M	906.8M	1.11B	969.5M	1.46B
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.18%	0.11%	0.21%	0.32%	0.06%	0.22%	0.11%	0.23%	-0.13%	0.51%
EPS (Diluted)+	2.06	2.32	2.54	3.40	3.52	4.20	4.37	5.19	4.42	6.53
EPS Growth %	0.05%	0.13%	0.09%	0.34%	0.04%	0.19%	0.04%	0.19%	-0.15%	0.48%
EPS (Basic)	2.07	2.33	2.57	3.47	3.60	4.29	4.47	5.30	4.51	6.63
Diluted Shares Outstanding	173.22M	178.39M	182.12M	186.16M	190.1M	195M	207.3M	214.7M	219.3M	223.9M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	10.91B	11.49B	12.9B	16.33B	19.63B	22.33B	33.34B	38.36B	51.62B	64.26B
Asset Growth %	0.09%	0.05%	0.12%	0.27%	0.2%	0.14%	0.49%	0.15%	0.35%	0.24%
Total Investment Assets+	0	0	0	59.5M	45.4M	22.4M	3.4M	0	0	0
Long-Term Investments	0	0	0	59.5M	45.4M	22.4M	3.4M	0	0	0
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Total Current Assets+	4.34B	4.42B	5.17B	8.12B	9.12B	11.12B	17.67B	22.29B	32.12B	44.11B
Cash & Equivalents	480.4M	545.5M	681.2M	607.2M	604.8M	664.6M	402.6M	738.4M	971.5M	14.99B
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Assets	1.41B	1.39B	1.71B	1.72B	2.12B	3.01B	4.19B	17.89B	27.36B	25.23B
Goodwill & Intangibles+	5.36B	5.4B	5.84B	6.4B	7.94B	8.53B	12.62B	12.86B	16.11B	16.8B
Goodwill	3.66B	3.77B	4.2B	4.63B	5.62B	6.13B	8.67B	9.49B	11.48B	12.27B
Intangible Assets	1.7B	1.63B	1.64B	1.77B	2.32B	2.4B	3.95B	3.37B	4.63B	4.53B
PP&E (Net)	202.7M	377.6M	412.2M	436.9M	860.9M	824.6M	859.4M	922.9M	1.13B	1.03B
Other Assets	492.2M	504.3M	567M	514.1M	728.2M	747.5M	963.1M	918.7M	1.13B	1.35B
Total Liabilities	7.23B	7.83B	8.73B	11.76B	14.42B	16.1B	24.78B	29.17B	40.8B	44.08B
Total Debt+	2.46B	2.85B	3.13B	3.61B	4.95B	4.87B	6.59B	6.42B	8.32B	13.49B
Net Debt	1.98B	2.3B	2.45B	3B	4.34B	4.2B	6.19B	5.68B	7.35B	-1.5B
Long-Term Debt	0	2.14B	2.69B	3.09B	3.82B	4.27B	5.81B	5.56B	7.01B	12.73B
Short-Term Debt	382M	703.6M	441.1M	519M	790.6M	278.6M	473.4M	551.9M	959M	425.2M
Total Current Liabilities+	4.19B	4.61B	4.91B	7.69B	8.92B	10.13B	16.73B	21.34B	31.06B	29.26B
Accounts Payable	2.88B	3B	4.99B	5.74B	6.35B	7.78B	13.85B	18.7B	0	0
Deferred Revenue	61.3M	69M	74.8M	379.3M	434.1M	475.6M	520.9M	546.7M	644.7M	537.2M
Other Current Liabilities	119.9M	139.9M	-1.46B	1.06B	1.35B	1.6B	1.9B	1.54B	29.46B	28.3B
Deferred Taxes	0	-1000K	-1000K	0	0	0	0	0	0	0
Other Liabilities	3.03B	1.08B	1.13B	900.9M	1.27B	1.31B	1.87B	1.9B	2.32B	1.69B
Total Equity+	3.69B	3.66B	4.16B	4.57B	5.22B	6.23B	8.56B	9.19B	10.82B	20.18B
Equity Growth %	0.12%	-0.01%	0.14%	0.1%	0.14%	0.2%	0.37%	0.07%	0.18%	0.87%
Shareholders Equity	3.64B	3.6B	4.11B	4.5B	5.16B	6.19B	8.51B	9.14B	10.78B	20.15B
Minority Interest	49.9M	59.2M	59.7M	70.8M	60M	46.5M	51.7M	46.6M	40M	26.1M
Retained Earnings	774.5M	916.4M	1.1B	1.56B	1.9B	2.37B	2.88B	3.56B	4.05B	4.99B
Common Stock	176.9M	178.3M	181M	184M	188.1M	193.7M	208.5M	211.9M	216.7M	250M
Accumulated OCI	-522.5M	-763.6M	-559.9M	-785.6M	-759.6M	-643.6M	-726.1M	-1.14B	-792.1M	-1.15B
Return on Equity (ROE)	0.1%	0.11%	0.12%	0.15%	0.14%	0.14%	0.12%	0.13%	0.1%	0.09%
Return on Assets (ROA)	0.03%	0.04%	0.04%	0.04%	0.04%	0.04%	0.03%	0.03%	0.02%	0.03%
Equity / Assets	-	-	-	-	-	-	-	-	-	-
Debt / Equity	0.67x	0.78x	0.75x	0.79x	0.95x	0.78x	0.77x	0.70x	0.77x	0.67x
Book Value per Share	21.29	20.49	22.87	24.55	27.44	31.96	41.29	42.80	49.32	90.13
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	652.6M	622.1M	854.2M	765.1M	1.12B	1.75B	1.7B	1.39B	2.03B	2.58B
Operating CF Growth %	0.62%	-0.05%	0.37%	-0.1%	0.46%	0.57%	-0.03%	-0.18%	0.46%	0.27%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	356.8M	445M	499.2M	675.9M	715.8M	858.1M	955M	1.12B	966M	1.46B
Depreciation & Amortization	334.2M	350.8M	385.8M	419M	474.4M	562.4M	566.3M	599.6M	696.5M	842.3M
Stock-Based Compensation	11.2M	14.7M	17.3M	13.7M	14M	13.6M	13.4M	24.4M	31.4M	117.5M
Deferred Taxes	-161.2M	-158M	-183.4M	-216M	-65.3M	9.2M	-184M	-209M	43.1M	108.6M
Other Non-Cash Items	95.6M	96.4M	192.6M	191.3M	45.9M	13.5M	153.9M	-693.7M	415.9M	10.9M
Working Capital Changes	16M	-126.8M	-57.3M	-318.8M	-65.6M	295.7M	199.5M	552.7M	-121.2M	40.9M
Cash from Investing+	-461.6M	-569.2M	-511M	-910.3M	-1.38B	-416.8M	-3.43B	-1B	-3.29B	-1.59B
Capital Expenditures	-99M	-217.8M	-129.2M	-124.4M	-138.8M	-99.3M	-128.6M	-182.7M	-193.6M	-141.9M
Acquisitions	-333.1M	-319.5M	-372.9M	-770.3M	-1.19B	-316.1M	-3.24B	-753.9M	-3.03B	-1.46B
Purchase of Investments	0	-73.7M	0	0	-127.4M	-85.8M	-40.2M	-3.6M	0	0
Sale/Maturity of Investments	0	0	0	0	1000K	1000K	1000K	1000K	0	0
Other Investing	-29.5M	41.8M	-8.9M	-15.6M	-52M	-1.4M	-67.9M	-65.6M	-67.4M	16.8M
Cash from Financing+	-9.9M	33.9M	-47.8M	162M	638.4M	-505.1M	2.68B	212.6M	2.87B	13.05B
Dividends Paid	-257.5M	-272.2M	-282.7M	-301.8M	-321.1M	-347.4M	-392M	-429.5M	-473.6M	-525.4M
Share Repurchases	0	-101M	-17.7M	-11.3M	0	0	0	0	0	0
Stock Issued	203.3M	45.6M	60.4M	81.9M	101.2M	111.9M	1.55B	123.1M	120.2M	8.51B
Debt Issuance (Net)	1000K	1000K	1000K	1000K	1000K	-1000K	1000K	-1000K	1000K	1000K
Other Financing	-34.6M	10.3M	-68.4M	-114.7M	-140.9M	-189.2M	-229.6M	680.2M	1.37B	-196.7M
Net Change in Cash+	166M	65.1M	367.4M	-68.2M	387.1M	950.4M	892M	497.9M	1.58B	13.93B
Exchange Rate Effect	-1000K	-1000K	1000K	-1000K	1000K	1000K	-1000K	-1000K	-1000K	-1000K
Cash at Beginning	314.4M	480.4M	1.94B	2.31B	2.24B	2.62B	3.57B	4.47B	4.96B	6.54B
Cash at End	480.4M	545.5M	2.31B	2.24B	2.62B	3.57B	4.47B	4.96B	6.54B	20.47B
Free Cash Flow+	553.6M	404.3M	725M	640.7M	980.4M	1.65B	1.58B	1.21B	1.84B	2.44B
FCF Growth %	0.73%	-0.27%	0.79%	-0.12%	0.53%	0.69%	-0.05%	-0.23%	0.52%	0.33%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF per Share	3.2	2.27	3.98	3.44	5.16	8.48	7.6	5.62	8.38	10.9

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Combined Ratio	91.89%	91.63%	91.81%	91.09%	89.52%	85.16%	83.71%	80.51%	81.54%	80.25%
Medical Cost Ratio	70.11%	71.79%	72.36%	71.98%	67.85%	64.2%	63.75%	57.93%	57.85%	57.78%
Return on Equity (ROE)	10.2%	10.81%	12.31%	14.51%	13.67%	14.3%	12.26%	12.55%	9.69%	9.44%
Return on Assets (ROA)	3.41%	3.54%	3.95%	4.33%	3.72%	3.9%	3.26%	3.11%	2.16%	2.52%
Equity / Assets	33.79%	31.82%	32.29%	27.98%	26.56%	27.91%	25.67%	23.96%	20.95%	31.41%
Book Value / Share	21.29	20.49	22.87	24.55	27.44	31.96	41.29	42.8	49.32	90.13
Debt / Equity	0.67x	0.78x	0.75x	0.79x	0.95x	0.78x	0.77x	0.70x	0.77x	0.67x
Revenue Growth	16.55%	5.34%	9.95%	10.86%	2.83%	-1.55%	17.12%	4.16%	17.79%	14.72%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Commissions	-	-	-	-	-	-	-	-	-	6.69B
Commissions Growth	-	-	-	-	-	-	-	-	-	-
Brokerage	3.32B	3.53B	3.83B	4.25B	4.9B	5.17B	5.97B	7.3B	8.64B	3.61B
Brokerage Growth	-	6.13%	8.58%	10.87%	15.41%	5.42%	15.49%	22.39%	18.26%	-58.24%
Investment Performance	-	-	-	-	-	-	-	-	-	473.2M
Investment Performance Growth	-	-	-	-	-	-	-	-	-	-
Supplemental Revenue Member	-	-	-	-	-	-	-	-	-	359.4M
Supplemental Revenue Member Growth	-	-	-	-	-	-	-	-	-	-
Contingent Revenue	-	-	-	-	-	-	-	-	-	267.6M
Contingent Revenue Growth	-	-	-	-	-	-	-	-	-	-
Risk Management	727.1M	718.1M	768.6M	939.9M	977.1M	973.4M	1.1B	1.22B	1.43B	-
Risk Management Growth	-	-1.24%	7.03%	22.29%	3.96%	-0.38%	13.07%	11.13%	17.16%	-
Corporate	1.34B	1.35B	1.56B	1.75B	1.32B	863.5M	1.14B	23.7M	1.7M	-
Corporate Growth	-	0.66%	15.58%	11.96%	-24.66%	-34.40%	32.17%	-97.92%	-92.83%	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	2.12B	2.33B	2.54B	5.38B	5.38B	5.05B	5.86B	5.56B	6.43B	7.43B
UNITED STATES Growth	-	10.00%	8.70%	111.94%	0.02%	-6.14%	16.00%	-5.12%	15.64%	15.58%
UNITED KINGDOM	766.9M	712.1M	717.6M	773.9M	963.4M	1.03B	1.25B	1.59B	1.99B	2.23B
UNITED KINGDOM Growth	-	-7.15%	0.77%	7.85%	24.49%	7.37%	20.36%	27.58%	25.54%	11.60%
Other Foreign	68.2M	100.6M	162.6M	148.8M	167.1M	202.3M	246.5M	450.9M	572.6M	700.8M
Other Foreign Growth	-	47.51%	61.63%	-8.49%	12.30%	21.07%	21.85%	82.92%	26.99%	22.39%
AUSTRALIA	256.7M	245.5M	270.9M	290.6M	298.6M	314.5M	376.1M	410.9M	466.8M	574.6M
AUSTRALIA Growth	-	-4.36%	10.35%	7.27%	2.75%	5.32%	19.59%	9.25%	13.60%	23.09%
CANADA	136.6M	138.2M	155.4M	185.4M	226M	249.1M	308M	361.9M	403.9M	416M
CANADA Growth	-	1.17%	12.45%	19.31%	21.90%	10.22%	23.65%	17.50%	11.61%	3.00%
NEW ZEALAND	122.6M	125.8M	150.5M	157.5M	160.8M	154.4M	177M	181.3M	208M	210.2M
NEW ZEALAND Growth	-	2.61%	19.63%	4.65%	2.10%	-3.98%	14.64%	2.43%	14.73%	1.06%

Frequently Asked Questions

Valuation & Price

Arthur J. Gallagher & Co. (AJG) has a price-to-earnings (P/E) ratio of 39.2x. This suggests investors expect higher future growth.

Growth & Financials

Arthur J. Gallagher & Co. (AJG) grew revenue by 14.7% over the past year. This is steady growth.

Yes, Arthur J. Gallagher & Co. (AJG) is profitable, generating $1.64B in net income for fiscal year 2024 (12.7% net margin).

Dividend & Returns

Yes, Arthur J. Gallagher & Co. (AJG) pays a dividend with a yield of 0.92%. This makes it attractive for income-focused investors.

Arthur J. Gallagher & Co. (AJG) has a return on equity (ROE) of 9.4%. This is below average, suggesting room for improvement.

Industry Metrics

Arthur J. Gallagher & Co. (AJG) has a combined ratio of 80.2%. A ratio below 100% indicates underwriting profitability.

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