Arthur J. Gallagher & Co. provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services worldwide. It operates in two segments: Brokerage and Risk Management. The Brokerage segment offers retail and wholesale insurance and reinsurance brokerage, assists other brokers with specialized and hard-to-place insurance, and acts as a wholesale broker, managing general agent, and managing general underwriter. The Risk Management segment provides contract claim settlement and administration, claims management, loss control consulting, and insurance property appraisal services. Founded in 1927, the company is headquartered in Rolling Meadows, Illinois.
Arthur J. Gallagher & Co. Acquires Albany Insurance Services Limited
Arthur J. Gallagher & Co. announced today that it has acquired New Zealand-based Albany Insurance Services Limited, a retail insurance broker serving commercial and personal lines clients in New Zealand's Auckland and Canterbury regions. Terms of the transaction were not disclosed. The Albany Insurance team, led by Jeremy Bleakley, will operate under the direction of Carl O'Shea, head of Gallagher's New Zealand retail brokerage operations. "Albany Insurance's market expertise and client-first culture will enhance our brokerage operations in New Zealand," said J. Patrick Gallagher, Jr., Chairman and CEO, adding that he was delighted to welcome Jeremy and his associates to Gallagher. Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm headquartered in Rolling Meadows, Illinois, provides these services in approximately 130 countries through its owned operations and a network of correspondent brokers and consultants.
Climate Adaptation & Water › Property/Casualty & Reinsurance Underwriting Competition
AJG · Capital · Positive Gallagher announced the acquisition of Albany Insurance Services, expanding its New Zealand retail brokerage operations.
Albany Insurance Services Limited · Capital · Neutral Albany Insurance is being acquired by Gallagher; terms undisclosed, so impact on the acquired firm is unclear.
Four Analysts Cut Arthur J. Gallagher Price Targets as Brokerage Organic Outlook Trimmed to 5%
Four analysts cut their price targets on Arthur J. Gallagher & Co. between September 16 and September 25, 2026, with Morgan Stanley moving to $285 from $290, RBC Capital to $290 from $310, Wells Fargo to $291 from $296, and Mizuho to $292 from $300, all while keeping positive ratings. Wells Fargo said the company lowered its full-year Brokerage organic outlook to 5% from the 5.5% given in July, a change RBC tied to the inclusion of AssuredPartners in fourth-quarter organic results, since AssuredPartners was growing around 4% in July, below the 5% of the wider Brokerage segment. On the second-quarter 2026 earnings call, CEO J. Patrick Gallagher Jr. said only about one point of organic growth now comes from rates, with Q2 property renewals down 10% and casualty up 3%, and Mizuho expects insurer fundamentals to deteriorate through 2028. Against that, second-quarter organic growth was 6% across Brokerage and Risk Management combined, revenue grew 24%, adjusted EBITAC has grown at a double-digit pace for 25 straight quarters, and Risk Management delivered 12% organic growth. The company completed seven tuck-ins worth about $63 million of annualized revenue in the second quarter and had more than 30 term sheets representing roughly $500 million, and shares trade at 16.31 times forward earnings as of September 28, 2026, above Marsh McLennan at 14.37, with the fourth quarter, when AssuredPartners first reports organic results, the next test.
AJG · Capital · Negative Four analysts cut price targets on Arthur J. Gallagher after the company trimmed its full-year Brokerage organic outlook to 5% from 5.5%.
Arthur J. Gallagher & Co. reported that its Risk Management business, Gallagher Bassett, grew revenue 16% in the second quarter of 2026, including 12% organic growth, outpacing the 5% organic growth in its Brokerage segment. Management attributed the performance to strong new business and client retention, with clients seeking broader risk-management solutions. Notably, only about 1% of organic growth comes from higher insurance rates, making the 12% organic growth significant as pricing slows. Gallagher Bassett offers claims management, workers' compensation, risk consulting, and analytics, and AJG is enhancing its offerings with technology like Gallagher Blueprint. This shift could help sustain revenue growth even if insurance pricing becomes a smaller driver. Among peers, Willis Towers Watson's Risk & Broking revenue rose 11% to $1.16 billion with 7% organic growth, while Aon's Commercial Risk Solutions posted 5% organic growth. AJG shares have declined 12.2% over the past year, and the stock trades at a P/E of 18.26 versus the industry's 16.18. The Zacks Consensus Estimate for 2026 EPS implies a 24.2% year-over-year increase, with revenue expected at $13.3 billion, up 20.4%.
AJG · Demand · Positive Gallagher Bassett grew revenue 16% with 12% organic growth on strong new business and client retention, outpacing Brokerage's 5% organic growth.
Gallagher Bassett · Demand · Positive Gallagher Bassett, AJG's Risk Management unit, grew revenue 16% including 12% organic growth on strong new business and client retention.
AON · Demand · Neutral Mentioned only as a peer, with Aon's Commercial Risk Solutions posting 5% organic growth.
WTW · Demand · Neutral Mentioned only as a peer, with Willis Towers Watson's Risk & Broking revenue up 11% to $1.16 billion and 7% organic growth.
Insurance Brokers Shift to Execution-Driven Growth as Rates Fade
The Zacks Brokerage Insurance industry is showing resilient organic growth even as commercial insurance pricing softens, with brokers transitioning from rate-driven to execution-driven growth. Key players Willis Towers Watson, Arthur J. Gallagher, and Aon are best positioned to sustain over 5% organic growth, according to second-quarter 2026 results. Willis Towers Watson delivered 5% organic growth, with its Risk & Broking segment up 7%, and its 2026 earnings per share consensus estimate indicates a 16% year-over-year increase. Arthur J. Gallagher achieved 6% organic growth in the second quarter, up from 5% in the first, and expects 5.5% organic growth in Brokerage and 9% in Risk Management for 2026. Aon generated 5% organic growth for the second consecutive quarter, with broad-based growth across its businesses despite lower treaty pricing. The industry has lost 15.1% in the past year, underperforming the Finance sector's 11.9% gain and the S&P 500's 20.6% rise.
AJG · Demand · Positive Arthur J. Gallagher achieved 6% organic growth in Q2, up from 5% in Q1, and expects 5.5% organic growth in Brokerage and 9% in Risk Management for 2026.
AON · Demand · Positive Aon generated 5% organic growth for the second consecutive quarter, with broad-based growth across its businesses despite lower treaty pricing.
WTW · Demand · Positive Willis Towers Watson delivered 5% organic growth, with its Risk & Broking segment up 7%, and its 2026 EPS consensus estimate indicates a 16% year-over-year increase.
Arthur J. Gallagher Reports 20% Annual Revenue Growth and 18.5% EPS CAGR
Arthur J. Gallagher reported that its revenue has grown about 20% annually over the past two years and earnings per share have increased about 18.5% annually over the past five years, alongside a free cash flow margin of roughly 17.3%. Management also disclosed that AJG has about US$10,000,000,000 of capacity for acquisitions over the next two years, backed by solid free cash generation. The company's narrative projects $20.5 billion revenue and $3.0 billion earnings by 2029, requiring 10.6% yearly revenue growth and about a $1.4 billion earnings increase from $1.6 billion today. Some cautious analysts were assuming revenue of about US$20,400,000,000 and earnings of roughly US$2,700,000,000 by 2029, far less enthusiastic than the consensus view.
Arthur J. Gallagher Projects 6% Organic Growth for 2026
Arthur J. Gallagher & Co. projects total company organic growth of 6% for 2026, with brokerage at 5.5% and risk management at 9%. The company reported 24% total revenue growth in the second quarter of 2026 for its combined Brokerage and Risk Management segments, including 6% organic growth. Management highlighted its 25th consecutive quarter of double-digit adjusted EBITDAC growth and continued underlying margin expansion. The integration of AssuredPartners is nearly a year along, with strong retention and collaboration reported. Peers Brown & Brown and Willis Towers Watson posted mixed organic results, with Brown & Brown declining 0.7% and Willis Towers Watson growing 5% in the same period.
AJG · Capital · Positive Company projects 6% organic growth for 2026 and reports strong Q2 results with 24% revenue growth.
BRO · Capital · Negative Peer Brown & Brown posted a 0.7% decline in organic growth, contrasting with Gallagher's positive outlook.
WTW · Capital · Positive Peer Willis Towers Watson grew 5% organically, showing positive performance in the same period.
AssuredPartners · Capital · Positive Integration of AssuredPartners is nearly a year along with strong retention and collaboration, contributing to growth.
HSBC UK has partnered with Gallagher to provide insurance services to its commercial banking customers. Under the arrangement, businesses with insurance needs will be referred to Gallagher for specialist insurance advice, risk management support, and access to insurance products. HSBC UK said the partnership is intended to make it easier for commercial customers to access specialist expertise so they can spend less time dealing with insurance and more time focusing on day-to-day operations and growth. GlobalData's 2025 SME Survey found that 43.1% of UK SMEs were offered insurance through their main business bank, but only 22.7% went on to buy the product from their bank, while 47.7% chose to purchase similar cover elsewhere.
Arthur J. Gallagher Q2 revenue meets estimates, shares dip on pricing headwinds
Arthur J. Gallagher reported second-quarter revenue of $4.00 billion, meeting Wall Street expectations with 24.5% year-on-year growth, while adjusted earnings per share of $2.84 beat estimates by 0.9%. Organic growth reached 6%, driven by strong client retention and new business, particularly in the risk management segment, though moderating property pricing weighed on results. The company highlighted progress in integrating its AssuredPartners acquisition and sees up to 400 basis points of margin expansion over three to five years from artificial intelligence and automation initiatives. Management also noted a robust M&A pipeline with over 30 term sheets in progress, despite a slower deal pace due to lower industry multiples. Shares fell to $249.02 following the report.
Arthur J. Gallagher Appoints Ralph Nicoletti as Lead Independent Director After Death of David Johnson
Arthur J. Gallagher announced the passing of Lead Independent Director David Johnson and the appointment of Ralph Nicoletti as the new Lead Independent Director. Nicoletti will continue to serve as Audit Committee Chair, concentrating two key governance roles in one person. The board has also reduced its size to eight members. The company recently reported Q2 2026 revenue of US$4,003 million and net income of US$324 million, and affirmed a US$0.70 quarterly dividend alongside ongoing share repurchases.
Arthur J. Gallagher Poised for Another Earnings Beat
Arthur J. Gallagher is positioned to beat earnings estimates again in its next quarterly report, supported by a positive Earnings ESP of +0.17% and a Zacks Rank #3 (Hold). The insurance and risk-management company has surpassed consensus estimates in each of the last two quarters, with an average surprise of 1.43%. In the most recent quarter, it reported earnings of $4.47 per share against an estimate of $4.40, a 1.59% beat, while the prior quarter saw earnings of $2.38 per share versus a $2.35 estimate, a 1.28% surprise. The combination of a positive Earnings ESP and a Zacks Rank of #3 or better has historically produced a positive earnings surprise nearly 70% of the time.
Arthur J. Gallagher Acquires Cincinnati Benefit Solutions to Expand in Ohio
Arthur J. Gallagher has agreed to acquire Cincinnati Benefit Solutions, an employee benefits consulting firm based in Ohio. The deal expands Arthur J. Gallagher's footprint with small business clients in the Ohio market and adds to its employee benefits capabilities. The Cincinnati Benefit Solutions team will report into the Great Lakes benefits leadership, suggesting a focus on continuity of client service while integrating the business into Gallagher's broader distribution and carrier relationships. This acquisition is part of Arthur J. Gallagher's strategy of using smaller, region-focused transactions to widen its benefits platform alongside larger deals like AssuredPartners.
Arthur J. Gallagher Touted as Top Services Stock While Baldwin Insurance and CoStar Flagged as Risky
StockStory identifies Arthur J. Gallagher as a business services stock poised to beat the market, while naming Baldwin Insurance Group and CoStar Group as risky. Arthur J. Gallagher, with a market cap of $56.76 billion, posted annual revenue growth of 19.1% over the last two years and earnings per share compounding at 18.5% annually over five years, and trades at 15.3 times forward price-to-earnings. Baldwin Insurance Group, valued at $1.80 billion, saw its free cash flow margin shrink by 5.1 percentage points over five years and carries a 6 times net-debt-to-EBITDA ratio, with shares at $24.19 implying a 10.7 times forward P/E. CoStar Group, at a $13.33 billion market cap, experienced a 1.6% annual decline in earnings per share over five years and a 17.4 percentage point drop in free cash flow margin, trading at $30.65 per share or 20 times forward P/E.
Ryan Specialty Tops Q1 Insurance Broker Earnings With 15.2% Revenue Growth
Ryan Specialty posted the strongest first-quarter results among five tracked insurance brokers, with revenue rising 15.2% year on year to $795.2 million and beating analyst estimates by 2.1%. Marsh reported revenue of $7.60 billion, up 7.6% and exceeding expectations by 2.9%, while Brown & Brown's revenue grew 35.4% to $1.90 billion but missed organic revenue estimates. Arthur J. Gallagher's revenue increased 27.7% to $4.75 billion, in line with forecasts, and Baldwin Insurance Group's revenue climbed 28.7% to $532.2 million, surpassing estimates by 3.2%. As a group, the five brokers' revenues beat consensus by 1.7%, though their average share price has fallen 3.8% since reporting.
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