Arthur J. Gallagher & Co. (AJG) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 26, 2022 5:15 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon. Welcome to Arthur J. Gallagher & Company's Third Quarter 2022 Earnings Conference Call. Participants have been placed on a listen-only mode, your lines will be open for questions, following the presentation. Today’s call is being recorded, if you have any objections, you may disconnect at this time.

Some of the comments made during this conference call, including answers given in response to questions may constitute forward-looking statements within the meaning of the securities laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary statements and risk factors contained in the company's 10-K, 10-Q and 8-K filings for more details on its forward-looking statements. In addition, for reconciliations of the non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the company's website.

It is now my pleasure to introduce J. Patrick Gallagher, Chairman, President and CEO of Arthur J. Gallagher & Co. Mr. Gallagher, you may begin.

J. Patrick Gallagher - Chairman, President and CEO

Thank you, operator, and good afternoon, everyone. Thank you for joining us for our third quarter 2022 earnings call. On the call for today is Doug Howell, our CFO; as well as the heads of our operating divisions. Before I get to my comments about our financial results, I'd like to acknowledge the damage of devastation caused by Hurricane Ian.

Our professionals are working diligently to help our clients sort through their coverages, file claims and ultimately get losses paid. At the same time, many of our own colleagues are doing the same for themselves. Our hearts go out to all of those impacted by the storm. In the aftermath of events such as in the insurance industry's role and response is paramount to help families, businesses and communities restore their lives.

I'm really honored to be part of an industry with such important responsibility. Okay, on to my comments regarding our third quarter financial performance. For our combined Brokerage and Risk Management segments, we posted 15% growth in revenue, 8.4% organic growth, net earnings growth of 12%, adjusted EBITDAC growth of 15%, and we completed or signed 7 mergers in the quarter totaling about $60 million of annualized revenues.