Arthur J. Gallagher reports Q4 adjusted EPS $1.54, consensus $1.50

Reports Q4 revenue $2.028B, consensus $1.94B. "We had a terrific fourth quarter, to cap off another excellent year of financial performance!" said J. Patrick Gallagher, Jr., Chairman, President and CEO. "During the quarter, our core brokerage and risk management segments combined to post 16% growth in revenue, of which 11.7% was organic revenue growth. We completed 17 new tuck-in mergers in the quarter and our newly acquired reinsurance brokerage operations finished the year ahead of our pro forma revenue and EBITDAC estimate. Global primary P/C renewal premium increases were more than 9% in the quarter, consistent with the first three quarters of 2022. Our primary carrier partners in many cases are facing higher reinsurance costs and seeing rising loss costs trends, so we believe there is good reason to expect continued premium increases. Positive policy endorsements and other mid-term policy adjustments were higher year over year for the seventh straight quarter, indicative of the underlying strength of our P/C clients’ businesses. The labor market imbalance continues to drive strong demand for our benefits and HR consulting services, while our risk management segment, Gallagher Bassett, continues to see rising claim counts from both existing and new clients. I would like to thank our 43,000-plus colleagues for their passion, creativity and hard work on behalf of our clients. An outstanding 2022 positions us very well for 2023 and beyond!"