By Chris Munro

Jan 30 - (The Insurer) - Arthur J Gallagher $(AJG)$’s brokerage organic growth accelerated to 7.1 percent in Q4 2024 from the previous quarter’s 6.0 percent, while the segment’s adjusted Ebitdac margin increased by 170 basis points year on year to 33.1 percent.

The fourth quarter 2024 organic growth of 7.1 percent in AJG’s brokerage business was a slight decrease when compared with the prior-year period’s 7.2 percent.

Brokerage adjusted Ebitdac increased by 18.5 percent year on year to $760.3mn.

Rolling Meadows, Illinois-based AJG’s brokerage business booked $2.02bn of base commissions and fees in the three months to 31 December 2024, compared with $1.80bn in the prior-year period.

Organic base commissions and fees in the brokerage division totalled $1.91bn in Q4 2024, up from $1.78bn in 2023’s fourth quarter.

AJG’s brokerage operation completed 19 acquisitions in 2024’s fourth quarter, which are expected to add estimated annualised revenues of $188.7mn to its top line.

The company’s risk management business generated organic growth of 6.0 percent in Q4 2024, flat when compared with the previous quarter, and a slow down from the 13.2 percent recorded in 2023’s fourth quarter.

Risk management adjusted Ebitdac grew by 7.8 percent year on year to $76.2mn. Its risk management adjusted Ebitdac margin dipped by 30 basis points compared with Q4 2023 to 20.6 percent.

The division’s fees increased to $357.6mn in 2024’s fourth quarter, compared with $328.7mn in the prior-year period.

AJG’s risk management operation completed one acquisition in the three months to 31 December 2024, representing estimated annualised revenues of $9.9mn.

Across the company, AJG generated adjusted Ebitdac of $805.0mn in 2024’s fourth quarter, compared with $662.7mn in the prior-year period.

“We had an excellent fourth quarter, to close out a great year!” said Pat Gallagher, AJG’s chairman and CEO.

“Our core brokerage and risk management segments combined to deliver our 16th consecutive quarter of double-digit revenue growth, including organic revenue growth of 7 percent.

“Our fourth quarter net earnings margin and adjusted Ebitdac margins increased to 13.5 percent and 31.4 percent, respectively, and adjusted Ebitdac grew 17 percent!” the executive said.

As Gallagher noted, AJG completed 20 new mergers in the quarter. That took its full-year total to 48 mergers and $387mn of estimated annualised revenue.

Added to that, in early December, AJG announced the acquisition of AssuredPartners in a circa $13.5bn deal. AssuredPartners is a commercial middle-market retail and specialty broker that Gallagher said will add another $2.9bn of pro-forma revenue to AJG.

“Overall, the global P/C insurance market continues to grow with fourth quarter primary renewal premium increases, both rate and exposure combined, consistent with the past two quarters,” said Gallagher.

“Thus far, January 2025 primary renewal premium increases are ticking slightly higher than fourth quarter and are above 5 percent driven by increases in casualty classes like umbrella and commercial auto.

“January 1, 2025 reinsurance renewals were orderly and reflected an environment that favored property and specialty reinsurance buyers, while casualty reinsurance programs generally experienced increases,” he added.