Gallagher reports strong growth in Australia, NZ businesses

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Gallagher reports strong growth in Australia, NZ businesses

3 November 2022

Broker Gallagher says its Australia and New Zealand business performed well in the third quarter, achieving combined organic growth of 9% for the July-September period.

New business volumes remained very strong and retentions improved from a year earlier, management said in an earnings call.

The US-based broker has made significant investments in the last few years, making strategic acquisitions to expand its network in the Australian and New Zealand markets.

Gallagher made another acquisition last month, buying Newcastle-based McCluskey Insurance Brokers for an undisclosed amount – its fourth in the last five months.

In its third quarter earnings report, Gallagher’s brokerage division improved its adjusted net earnings to $US394.8 million ($622.5 million) from $US347.6 million ($548.1 million) a year earlier. In the nine months to September, adjusted net earnings grew to $US1.4 billion ($2.2 billion) from $US1.11 billion ($1.75 billion).

“Our outstanding performance continued during the third quarter,” CEO J Patrick Gallagher said.

“Our third quarter renewal premium data shows global premium increases approximate 10.5%, a bit higher than the renewal premium change in the first half of the year.

“Price increases are mostly consistent with recent quarters across nearly all lines of business.”

Gallagher’s overall third quarter company net earnings, on an adjusted basis, improved to $US370.8 million ($584 million) from $US363 million ($572 million).