Q2 2024 Arthur J. Gallagher & Co. Earnings Call Transcript
Key Points
- Arthur J. Gallagher & Co (AJG) posted 14% growth in revenue and 7.7% organic growth in the second quarter.
- The company completed 12 new mergers totaling $72 million of estimated annualized revenue.
- Reported net earnings margin expanded by 35 basis points, and adjusted EBITDA margin expanded by 102 basis points to 31.4%.
- GAAP earnings per share increased by 15% year-over-year, and adjusted earnings per share rose by 19% year-over-year.
- The Risk Management segment saw revenue growth of 13%, including 7.7% organic growth, with adjusted EBITDA margins at 20.6%, up 120 basis points from last year.
- The company noted some timing impacts from lumpy Lifecare sales, which affected the Global Employee Benefit brokerage and consulting business organic growth.
- There were modest price declines in property reinsurance renewals due to increased capacity from traditional reinsurers and the ILS market.
- The company faced some headwinds from contingents that adversely impacted organic growth by about 25 basis points.
- The adjusted comp ratio noted savings related to headcount controls, indicating potential constraints on hiring or workforce adjustments.
- The company acknowledged uncertainties related to the upcoming election, interest rates, and hurricane season, which could impact future performance.
Please stand by for streaming text.
Good afternoon, and welcome to Arthur J. Gallagher & Company's second half of 24 earnings conference call. Participants have been placed on listen-only mode. Your lines will be open for questions following the presentation. Today's call is being recorded. If you have any objections, you may disconnect at this time. Some of the comments made during this conference call, including answers given in response to questions may constitute forward-looking statements within the meaning of the securities laws.
The Company does not assume any obligation to update information are forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
Please refer to the information concerning forward-looking statements and risk factors sections contained in the Company's most recent 10 K, 10 Q and eight K filings for more details on such risks and uncertainties. In addition, for reconciliations of non-GAAP measures
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