Arthur J. Gallagher & Co. has announced its Q1 financial results for 2023. The broker saw growth in brokerage revenue for Q1 to $2.4 billion, which is a rise from Q1 2022 that stood at $2.1 billion.
At the same time, the brokerage business saw its net earnings move from $464.3 million in Q1 2022 to $515.3 million in Q1 2023.
The broker has also reported a rise in its risk management revenue from Q1 2022 which was $259 million, to $298 million in Q1 2023.
In terms of net earnings, the risk management segment saw an increase from $23.9 million to $33.5 million.
Group-wide, revenue hit $2.8 billion in Q1 2023 compared with $2.4 billion a year earlier, while net earnings increased to $487 million, versus $439 million in Q1 2022.
J. Patrick Gallagher, Jr., Chairman, President and CEO, commented on the earnings reported, “We had an excellent start to 2023. Our core brokerage and risk management segments combined to post 12% reported revenue growth, 9.7% organic revenue growth, 12% growth in reported net earnings, and 15% growth in adjusted EBITDAC, and we improved our adjusted EBITDAC margin 29 basis points.”
Gallagher also commented on the overall insurance market conditions, “First quarter primary insurance market conditions are overall consistent with 2022 with renewal premiums up more than 9%.
“The property reinsurance market is very hard and we are seeing tighter terms and conditions across a broader range of territories – even into casualty reinsurance lines. And, we continue to see growth in our customers’ exposure units and payrolls.”
The broker expects insurance and reinsurance pricing increases to continue throughout 2023 and beyond. “Our talented team will leverage our expertise, data and insights to help clients with these challenging insurance market conditions. I believe we are very well-positioned for the remainder of 2023!” commented Gallagher.