Arthur J. Gallagher & Co. reported significant financial growth for the three and nine-month periods ending September 30, 2024, compared to the same periods in 2023. Total revenues for the third quarter reached $2,806.8 million, a 12.6% increase from $2,492.0 million in Q3 2023. For the nine-month period, total revenues were $8,838.9 million, up 15.6% from $7,640.0 million in the prior year. The growth was primarily driven by the brokerage segment, which generated $2,396.4 million in Q3 2024, a 13% increase from $2,122.1 million in Q3 2023, and $7,637.6 million for the nine-month period, reflecting a 16% increase from $6,585.7 million.
Net earnings for the third quarter of 2024 were $314.1 million, compared to $283.2 million in Q3 2023, marking an 11% increase. For the nine-month period, net earnings rose to $1,212.2 million from $1,005.6 million, a 20% increase. Earnings before income taxes for the company also improved, reaching $403.3 million in Q3 2024, up from $364.1 million in the same quarter of 2023, and $1,541.6 million for the nine-month period, compared to $1,267.3 million in 2023.
The company’s cash and cash equivalents increased significantly to $2,022.4 million as of September 30, 2024, from $971.5 million at the end of 2023. Fiduciary assets also rose to $30,836.3 million, up from $26,907.9 million. Total assets increased to $57,242.7 million from $51,615.8 million.
Strategically, Gallagher completed 28 acquisitions during the nine-month period, with cash paid for acquisitions totaling $669.4 million, a decrease from $1,183.6 million in the same period of 2023. The company issued 512,000 shares for acquisitions in 2024, down from 1,936,000 shares in 2023. The annualized revenues from acquired businesses were approximately $187.9 million, significantly lower than $475.3 million in the previous year.
Compensation expenses rose sharply, with a $173.2 million increase in Q3 2024 compared to the same period in 2023, attributed to acquisitions, workforce-related charges, and higher base and incentive compensation. Operating expenses also increased, driven by acquisition-related costs and investments in technology.
The corporate segment reported a pretax loss of $169.3 million for Q3 2024, compared to a loss of $145.7 million in Q3 2023. For the nine-month period, the corporate segment's pretax loss was $472.0 million, up from $417.9 million in the previous year.
Overall, Gallagher's performance reflects robust growth in revenues and earnings, supported by strategic acquisitions and strong operational performance across its segments.
About Arthur J. Gallagher & Co.
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