Arthur J. Gallagher & Co. is a global insurance brokerage and risk management services firm. It provides insurance brokerage, reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services. The company's core business model focuses on delivering structured insurance, reinsurance, and risk management solutions. Gallagher operates in over 130 countries through a network of owned offices and correspondent brokers and consultants. The company's competitive advantage lies in its ability to provide comprehensive and tailored solutions to a diverse range of clients, including commercial, nonprofit, public sector entities, insurance companies, and individuals. Gallagher is the world's third largest insurance broker/risk manager based on market capitalization and the fourth largest based on revenues.

• Employees: 52,000 (as of December 31, 2023)
• Geographic Footprint: Approximately 60 countries
• Headquarters: Rolling Meadows, Illinois
• Founded: 1927
• Number of locations/facilities: More than 890 sales and service offices
• Revenue: $10.1 billion (FY2023)
• Market Capitalization: $48.7 billion (as of December 31, 2023)
• Key Subsidiaries/Brands: Gallagher Re, Buck, Cadence Insurance, Eastern Insurance, My Plan Manager

• CEO: J. Patrick Gallagher, Jr. (Since 1995)
• President: Thomas J. Gallagher (Since 2024)
• Chief Operating Officer: Patrick M. Gallagher (Since 2024)
• CFO: Douglas K. Howell (Since 2003)
• Board Chair: J. Patrick Gallagher, Jr. (Since 2006)

Key executives have extensive experience in insurance and risk management. J. Patrick Gallagher, Jr. has served as CEO since 1995. Thomas J. Gallagher has served as President since 2024. Patrick M. Gallagher has served as COO since 2024. Douglas K. Howell has served as CFO since 2003.

• Annual Revenue: $10.1 billion (FY2023)
• Net Income: $969.5 million (FY2023)
• Market Cap: $48.7 billion (as of December 31, 2023)
• Total Assets: $51.6 billion (as of December 31, 2023)
• Number of Employees: 52,000 (as of December 31, 2023)
• Key Financial Highlights: Brokerage segment revenues increased by 18% and risk management segment revenues increased by 18% year-over-year.

Gallagher offers a wide array of products and services across its segments:

• Insurance Brokerage: Placement of commercial property/casualty, health, and welfare insurance coverage.
• Reinsurance Brokerage: Assistance to underwriting enterprises in securing reinsurance protection.
• Risk Management: Contract claim settlement, claim administration, and loss control services.
• Consulting: Employee benefits, human resources, and retirement consulting services.

Flagship offerings include customized risk management solutions, superior claim outcomes, and comprehensive consulting services.

The company operates through three main segments:

• Brokerage: Provides brokerage and consulting services, contributing 86% of 2023 revenues.
• Risk Management: Offers claims settlement and administration services, contributing 14% of 2023 revenues.
• Corporate: Primarily manages clean energy investments and corporate expenses.

The brokerage segment generates approximately 64% of its revenue in the U.S., with the remaining 36% generated internationally. The corporate segment did not generate revenues in 2023.

Gallagher's strategic priorities include expanding its talent pool, enhancing its geographic presence and service capabilities, and diversifying its business mix. Key initiatives include:

• Focusing on niche/practice groups and middle-market accounts.
• Cross-selling brokerage products to existing clients.
• Pursuing strategic mergers and acquisitions.
• Developing and managing alternative market mechanisms such as captives.

The company aims for long-term growth through strategic acquisitions, organic growth, and innovation in its service offerings. Gallagher is also focused on sustainability and ESG-related matters.

Gallagher operates in the highly competitive insurance and reinsurance brokerage industry. Key market trends include:

• Primary Industry: Insurance and Reinsurance Brokerage
• Market Trends: Consolidation in the industry, increased competition from private equity firms and technology companies, and the growing importance of data analytics and technology.
• Major Competitors: Aon, Marsh & McLennan, and Willis Towers Watson, along with numerous smaller firms.
• Market Share: Gallagher is the world's third largest insurance broker/risk manager based on market capitalization and the fourth largest based on revenues.

• Economic and Geopolitical Risks: High inflation, interest rate changes, recession, political instability, and geo-economic fragmentation can adversely affect operations and financial condition.
• Acquisition Risks: Challenges in sourcing, reviewing, pricing, and integrating acquisitions, especially larger ones, can impact growth and financial results.
• Reputational Risks: Damage to reputation from ESG matters, social media, or cybersecurity incidents can harm the business.
• Talent Risks: Failure to attract and retain qualified talent, including senior management, can negatively impact performance.
• Operational Risks: Business disruptions from cyber-attacks, natural disasters, or political unrest can affect operations and client relationships.