Gallagher says Q3 ‘excellent’, announces new leaders
Gallagher’s third quarter revenue hit $US2.12 billion ($3.35 billion) as the broker says its Property & Casualty operations in Australia and New Zealand posted organic revenue growth of 13%.
Renewal premium increases Down Under were ahead of the same period a year earlier as core new business wins “remain excellent”.
It was also announced Thomas Gallagher will assume the role of President from January, and Patrick M. Gallagher will assume the role of EVP COO.
“These appointments are being made to better position us for the next phase of our growth,” Chairman, President and CEO J. Patrick Gallagher said.
“I have no plans to retire. I will continue to be CEO and Chairman focused on Gallagher's strategy and global expansion. In their future roles, Tom and Patrick will help me lead organic and merger and acquisition growth initiatives, drive operational improvement and further promote our bedrock culture across the entire organisation.”
In the third quarter, the core brokerage and risk management segments combined posted 22% reported revenue growth, 10.5% organic revenue growth, a 15.5% reported net earnings margin.
Gallagher is forecasting full year organic revenue growth above 15%, easing to 9-to-11% in 2024.
Global third quarter renewal premiums, which include both rate and exposure changes, were up 10%. Renewal premium increases remained broad-based across geographies and most product lines, with property up more than 20% and general liability up about 6%.
"We had an excellent third quarter," Mr Gallagher said. “So far during fourth quarter, our data on mid-term policy endorsements, policy cancellations and claim counts is not indicating a slow-down in our customers' business activity.
"Looking ahead, our growth opportunities are immense and with continued insurance and reinsurance price increases, economic growth, increasing geopolitical tensions, and a growing appreciation for risk, I believe our team is in a great position.”