The global broker’s brokerage segment expects 2022 net income of $1.2 billion (adjusted: $1.8 billion), up from $1 billion a year earlier. In the risk management segment, net revenue was US$115.8 million (adjusted: US$120 million), rebounding to $89.5 million in 2021.
The Net loss in its corporate segment Increased from $151.1 million in 2021 (adjusted: loss of $56.8 million) to $201.6 million in 2022 (adjusted: loss of $221.1 million).
Business-wide full-year pre-reimbursement revenue was $8.4 billion, up from $8 billion in 2021 (adjusted: $7.8 billion).
AJ Gallagher fourth quarter results
Company-wide net income for Q4 was $135.5 million (adjusted: $331.9 million), representing an increase from Q4 2021’s $120.9 million (adjusted: $290.3 million).
Earnings before reimbursement were $2 billion, up from $1.9 billion in Q4 2021.
“We had a terrible fourth quarter to cap off another great year of financial performance,” he said J. Patrick Gallagher, Jr., Gallagher Chairman, President and CEO.
“For the quarter, our core brokerage and risk management segments posted combined revenue growth of 16%, of which 11.7% was organic revenue growth.”
Gallagher closed 36 acquisitions in 2022, 17 of which came in Q4, the business said in an earnings release.
“We completed 17 new tuck-in mergers during the quarter, and our newly acquired reinsurance brokerage operations closed ahead of our pro forma revenue and EBITDAC estimates,” said Pat Gallagher.
Premiums will continue to rise, the brokerage CEO predicts.
“Global primary B/C renewal premiums were more than 9% in the quarter, consistent with the first three quarters of 2022,” said Pat Gallagher.
“Our primary carrier partners are facing higher reinsurance costs in many cases and are seeing trends in rising loss costs, so we believe there is good reason to expect continued premium increases.”
Meanwhile, positive policy approvals and other midterm policy adjustments were up year-over-year for the seventh consecutive quarter, which “indicates the underlying strength of our B&C clients’ businesses,” Pat Gallagher said.