Arthur J. Gallagher & Co. (AJG)

Over the past six months, Arthur J. Gallagher & Co.'s share price has outperformed the S&P500 Index by +6.1%, and the stock was trading higher than its 200-day moving average as of late June 2025. In Q4 2024, AJG reported an EPS of $2.13, surpassing the forecast, but revenue of $2.68 billion slightly missed expectations, leading to a modest stock decline. In Q1 2025, AJG showed robust performance with 14% revenue growth year-over-year, although revenue of $3.68 billion was slightly below the forecast, and the stock experienced a modest decline. The acquisition of AssuredPartners is expected to further enhance its market position, and AJG completed 11 tuck-in mergers in Q1 2025, expanding its market reach.

The provided information does not explicitly detail specific demand seasonality for Arthur J. Gallagher & Co.'s products and services. The company's profitability is tied to the cyclical nature of insurance and reinsurance premiums, influenced by broader market trends. The industry has been in a hardening cycle, characterized by high premiums driven by inflation and natural catastrophes. The company's Q4 2024 earnings call mentioned growing demand for property catastrophe cover. The brokerage segment's organic growth is influenced by factors like net new business production, mid-single-digit premium growth in the property and casualty market, and a strong U.S. labor market. The risk management segment benefits from client retention, increases in customer business activity, and rising claim counts.

Arthur J. Gallagher & Co. is a global insurance brokerage, risk management, and consulting services firm headquartered in Rolling Meadows, Illinois, founded in 1927. The company operates primarily through two core segments: Brokerage and Risk Management. The Brokerage segment provides a wide range of insurance and reinsurance placements, risk of loss management, and management of employer-sponsored benefit programs. The Risk Management segment, primarily operating through Gallagher Bassett, offers contract claim settlement, claim administration, loss control services, and risk management consulting. AJG's business model relies on commissions and fees from its insurance brokerage operations and risk management consulting services, acting as an intermediary between clients and insurance carriers. The company emphasizes a comprehensive approach to addressing complex risk management needs and consistently pursues strategic acquisitions to expand its service offerings and geographical reach.

Arthur J. Gallagher & Co. has a significant global presence, operating in approximately 130 to over 150 countries. The company has a substantial network of more than 570 sales and service offices globally, with operations spanning across the U.S. and 30 other countries. Key regions where Gallagher operates include the United States, Canada, Australia, New Zealand, and the United Kingdom. Specific examples of its international presence include branches in Australia, Canada and India. The company also expanded its presence in Singapore through an acquisition in 2011.

Arthur J. Gallagher & Co. is recognized for its expertise in insurance brokerage, risk management, and consulting services and has been recognized by the Ethisphere Institute as one of the World's Most Ethical Companies for seven consecutive years. The broader insurance industry and companies like Gallagher face challenges in preserving reputation amidst rising mistrust due to factors such as AI-driven fake news and global events. Reputational damage is an outcome of other risks, including cyber attacks, product recalls, and damaging headlines.

Arthur J. Gallagher & Co. is primarily owned by institutional shareholders, who hold approximately 87.37% of the company's stock, 2.95% by AJG insiders, and 9.68% by retail investors. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and JPMorgan Chase & Co. The largest individual shareholder is Robert E. Gallagher, owning 2.60 million shares, representing 1.02% of the company.