Gallagher reports rise in Q3 2022 net earnings

Gallagher has posted net earnings of $256.3m (£236.9m) for Q3 2022 in its latest financial results, published yesterday (27 October).

This net earnings figure rose from $238.6m (£213m) during the equivalent period last year. 

Ebitdac (earnings before interest, taxes, depreciation, amortisation and coronavirus) rose from $473.4m (£422.7m) in Q3 2021 to $508.7m (£454.2m) in Q3 2022.

Overall, the company’s total revenue saw a slight drop from $2,105.6m (£1,880m) in last year’s Q3 to $2,012m (£1,796m) in the latest quarter.

Earnings per share also increased from $1.06 (94p) in Q3 2021 to $1.19 (£1.06) this year.

Total revenues from its combined brokerage and risk management segments increased by 15%, however, which Gallagher’s EMEA chief executive Simon Matson said was “a fantastic achievement – driven by outstanding results across all our trading divisions”.

Brokerage earnings rose to $282.5m (£252.2m) in Q3 2022 – up from $253.6m (£226.4m) in 2021.

Gallagher’s risk management segment, on the other hand, saw earnings rise to $26.9m (£24m) – compared to $22m (£19.6m) in Q3 2021.

Organic revenues, meanwhile, increased by 8.4%.

£1bn GWP target

Matson said: “Our specialty division has had a very strong quarter and is significantly ahead of last year. Our property and casualty, aerospace and construction practices all performed very well and throughout the year have maintained double digit organic growth during each quarter.

“UK retail continues to grow strongly organically and is focused on supporting our UK clients during the current economic instability.

“We have seen good growth across our private clients, SME and mid corporate client base and our M&A pipeline remains buoyant in this area of the business and we expect to make further acquisition announcements in the coming months.

“Pen Underwriting continues to build on its performance from the first half of the year and the recent announcement of Aviva committing to a long term capacity arrangement for Pen is testament to the strength of its capacity partners.”

According to Matson, Pen Underwriting’s purchase of Manchester Underwriting Management will form part of Gallagher’s strategy to achieve £1bn gross written premium (GWP) by 2026.

“Gallagher’s employees in the UK continue to demonstrate excellent commitment to our clients, working hard to deliver the very best insurance solutions for them and would like to thank them all for their hard work,” he added. 

• Insurance Times has converted dollar amounts into pounds using an exchange rate of £1 = $1.12, which was correct as of 1 October 2022.