Gallagher posts strong Q1 results, and says there is more capacity for another big deal in 2019
Gallagher’s net earnings in the first quarter surged 22% to $334.1m in a ‘fantastic’ start to 2019, according to chief executive Pat Gallagher.
Revenues were up 8% to $1.99bn. Broking had a particularity strong start to the year, with revenues up to $1.38bn, compared to $1.19bn in the same period last year.
Gallagher has been praised by respected analysts, amid contiuning strong shareholder returns
It came as the Gallagher management revealed in a call to analysts that its total M&A capacity was $1.5bn - and this was even before stock had been added into the mix.
Around $350m has been used on the Stackhouse Poland, which completed earlier this month.
Gallagher is not going to use the whole of its M&A capacity, but there is likely to be another deal above $100m, it emerged from the call with analysts.
| Gallagher UK pricing and performance | Q1 2019 |
|---|---|
| Organic growth | +5% |
| UK retail pricing overall | up 3% |
| Professional liablity pricing | over 5% |
| Catastrophe lines pricing | over 10% |
Gallagher praised staff who helped execute the successful strategy of organic growth, margin expansion and smart M&A to achieve the positive results.
He said: ”We had a fantastic start to 2019 and the team delivered on all four of our operating priorities.
Gallagher has received awards for being one of the most ethical companies in the world
”During the first quarter of 2019, our core brokerage and risk management operations generated excellent total revenue growth, terrific organic revenue growth, outstanding margin expansion and strong growth from our tuck-in M&A strategy.
“Most importantly, our unique culture is thriving around the world, demonstrated by our being selected as a World’s Most Ethical Company for the eighth year in a row by the Ethisphere Institute. I believe we are very well positioned for the remainder of 2019.”
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