Arthur J. Gallagher & Co.
- Open
- 265.00
- Day high
- 272.37
- Day low
- 262.49
- Prev close
- 263.81
- Volume
- 0
- Mkt cap
- $69.7B
- P/E (TTM)
- 44.6
- EPS (TTM)
- $6.10
- P/B
- 2.9
- P/S
- 4.4
- Yield
- 0.99%
- Per share
- $2.70
- ▼Insiders net selling -$1.5M over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions mixed (13F)
Arthur J. Gallagher & Co. (AJG) is a Financial Services company listed on NYSE. The stock is down 10% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4). Drillr has 1 published research article covering AJG.
Arthur J. Gallagher & Co. (AJG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 11 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AJG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $2.81 | $2.84 | +1.1% | $4.0B | -1.3% |
| Apr 30, 2026 | $4.43 | $4.47 | +0.9% | $4.7B | -0.3% |
| Jan 29, 2026 | $2.35 | $2.38 | +1.3% | $3.6B | +0.9% |
| Oct 30, 2025 | $2.51 | $2.32 | -7.6% | $3.4B | +0.9% |
| Jul 31, 2025 | $2.36 | $2.33 | -1.3% | $3.2B | +0.5% |
| May 1, 2025 | $3.57 | $3.67 | +2.8% | $3.7B | +0.5% |
| Jan 30, 2025 | $2.03 | $2.13 | +4.9% | $2.7B | +0.4% |
| Oct 24, 2024 | $2.26 | $2.26 | +0.0% | $2.8B | +1.0% |
| Jul 25, 2024 | $2.24 | $2.26 | +0.9% | $2.8B | +0.3% |
| Apr 25, 2024 | $3.41 | $3.49 | +2.3% | $3.3B | +2.5% |
| Jan 25, 2024 | $1.83 | $1.85 | +1.1% | $2.4B | +3.2% |
| Oct 26, 2023 | $1.94 | $2.00 | +3.1% | $2.5B | +4.3% |
AJG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 20, 2026 | Mead Christopher Eofficer: VICE PRESIDENT | Option | 3,500 | $86.17 |
| Aug 20, 2026 | Mead Christopher Eofficer: VICE PRESIDENT | Sell | 3,500 | $257.02 |
| Aug 18, 2026 | Bloom Mark H.officer: Vice President | Option | 1,280 | — |
| Aug 18, 2026 | Bloom Mark H.officer: Vice President | Tax | 607 | $251.21 |
| Jul 6, 2026 | Pesch Michael Robertofficer: Vice President | Option | 356 | $229.57 |
| Jul 6, 2026 | GALLAGHER THOMAS JOSEPHofficer: President | Option | 352 | $229.57 |
| Jul 6, 2026 | Jain Vishalofficer: VICE PRESIDENT | Option | 2,163 | $229.57 |
| Jun 2, 2026 | JOHNSON DAVID Sdirector | Grant | 237 | $206.10 |
| Jun 2, 2026 | Miskel Christopher C.director | Grant | 194 | $206.10 |
| Jun 2, 2026 | CARY RICHARD Cofficer: Controller, CAO | Sell | 3,000 | $206.00 |
| May 13, 2026 | NICOLETTI RALPH Jdirector | Grant | 1,110 | — |
| May 13, 2026 | JOHNSON DAVID Sdirector | Grant | 1,110 | — |
| May 13, 2026 | Clarke Teresa Hillarydirector | Grant | 1,110 | — |
| May 13, 2026 | Harries Richard de Winton Wilkindirector | Grant | 1,110 | — |
| May 13, 2026 | Miskel Christopher C.director | Grant | 1,110 | — |
Source: AJG SEC Form 4 filings, latest Aug 20, 2026. For informational purposes only — not investment advice.
See the full AJG insider & 13F page →Arthur J. Gallagher & Co. company profile
Overview
Arthur J. Gallagher & Co. (NYSE:AJG) is one of the world's largest insurance brokerage and risk management services companies, founded in 1927 and headquartered in Rolling Meadows, Illinois. The company has grown from a small Chicago-based insurance agency into a global enterprise serving clients across the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. With nearly a century of experience, Gallagher has built its reputation on what it calls "the Gallagher Way" - a culture emphasizing client service, employee development, and ethical business practices. The company went public in 1984 and has since expanded through both organic growth and strategic acquisitions, completing hundreds of mergers and acquisitions to build its current global footprint.
Business
Arthur J. Gallagher operates in the insurance services industry, functioning as an intermediary between businesses seeking insurance coverage and insurance companies providing that coverage. The company operates through two primary business segments that together generated over $11.5 billion in revenue in 2024. The Brokerage segment represents approximately 85% of total revenue and serves as the company's core business. This segment acts as an insurance broker, helping clients identify, evaluate, and purchase appropriate insurance coverage while also providing consulting services for risk management and employee benefits. The brokerage operations include retail insurance brokerage (serving individual businesses directly), wholesale insurance brokerage (serving other insurance brokers and agents), and specialty insurance services. Within this segment, Gallagher operates several distinct business lines: Property & Casualty (P&C) retail operations serve commercial, industrial, and institutional clients; Global Employee Benefits helps organizations design and manage health, retirement, and other employee benefit programs; and Reinsurance, Wholesale & Specialty operations provide specialized coverage for hard-to-place risks and serve as intermediaries for other insurance professionals. The Risk Management segment, operating under the Gallagher Bassett brand, represents approximately 15% of total revenue and provides third-party claims administration services. When businesses experience losses or claims, this segment manages the entire claims process on behalf of self-insured companies, insurance carriers, and public entities. Services include investigating claims, managing settlements, coordinating repairs, and ensuring compliance with regulatory requirements. This segment also offers loss control consulting and insurance property appraisal services to help clients minimize future risks and accurately value their assets.
Revenue model
Arthur J. Gallagher generates revenue through several complementary business models centered around insurance services. The primary revenue streams include commission-based income, fee-based services, and contingent revenues. Commission Revenue forms the largest component, earned when clients purchase insurance policies through Gallagher's brokerage services. Insurance carriers pay Gallagher a percentage of the premium (typically 10-15%) for bringing them business and managing the client relationship. This creates a recurring revenue stream as most commercial insurance policies renew annually. Fee-Based Revenue comes from consulting services, risk management advice, and specialized services where clients pay directly for Gallagher's expertise rather than through carrier commissions. This includes employee benefits consulting, claims administration services through Gallagher Bassett, and specialized risk management consulting. Contingent Revenue represents additional payments from insurance carriers based on the profitability and volume of business Gallagher delivers. These payments are typically made annually and can vary significantly based on claims experience and overall business performance. The company's margins are influenced by several factors that can enhance or pressure profitability. Positive margin drivers include: the continuing "hard market" in commercial insurance where premium rates are rising, allowing for higher commission dollars without proportional increases in costs; successful cross-selling of multiple services to existing clients; economies of scale from acquisitions; and the company's growing specialty and wholesale operations which typically command higher margins. Margin pressures can arise from: competitive pressure in certain market segments; the cyclical nature of insurance markets where "soft markets" can reduce premium growth; increased regulatory compliance costs; and the need for continued technology investments to remain competitive. The company's focus on higher-value services and specialized expertise helps maintain pricing power even during challenging market conditions.
Competitive moat
Arthur J. Gallagher possesses a moderate but sustainable competitive moat built primarily around relationship-based advantages, specialized expertise, and operational scale. The insurance brokerage industry inherently favors established players due to the trust-based nature of risk management relationships and the complexity of commercial insurance markets. The company's strongest moat characteristics include its deep, long-term client relationships where switching costs are high due to the complexity of insurance programs and the risk of coverage gaps during transitions. Gallagher's specialized expertise in niche markets and complex risks creates value that is difficult for competitors to replicate quickly. The company's global platform allows it to serve multinational clients in ways that smaller, regional brokers cannot match. Additionally, Gallagher's scale provides negotiating leverage with insurance carriers and enables investments in technology and talent that smaller competitors struggle to afford. However, the moat faces several challenges. The brokerage industry has relatively low barriers to entry for basic services, and large competitors like Marsh McLennan, Aon, and Willis Towers Watson possess similar scale advantages. Digital disruption poses a long-term threat as technology could potentially commoditize certain brokerage services, particularly for smaller, less complex accounts. The industry also faces ongoing regulatory scrutiny regarding broker compensation and potential conflicts of interest. The company's moat is best described as "narrow but durable" - while not insurmountable, the combination of relationships, expertise, and scale creates meaningful competitive advantages that should persist over time. The key to maintaining this moat lies in Gallagher's continued investment in specialized capabilities, technology, and talent while leveraging its cultural advantages to retain both clients and employees in a relationship-driven industry.
Risks & safety
Arthur J. Gallagher demonstrates strong financial stability with solid cash generation and manageable debt levels, though recent acquisition activity has impacted some metrics. **Cash Flow and Liquidity:** - Strong free cash flow generation of $2.4 billion in 2024 - Substantial cash position of $15.0 billion as of Q1 2025 - Current ratio of 1.44, indicating adequate short-term liquidity - Operating cash flow of $871.8 million in Q1 2025 alone **Debt and Solvency:** - Debt-to-equity ratio of 0.67, elevated due to recent acquisition financing - No immediate solvency concerns given strong cash generation - Interest coverage appears adequate based on EBITDA levels **Valuation Metrics:** - P/E ratio of 27.7 (Q1 2025) suggests moderate valuation - EV/EBITDA of 11.6, reasonable for a growing services company - Price-to-book ratio of 3.5 reflects asset-light business model **Other Considerations:** - Recurring revenue model provides predictable cash flows - Exposure to insurance market cycles could impact growth - Integration risks from large AssuredPartners acquisition pending
Recent development
Over the past several years, Arthur J. Gallagher has pursued an aggressive growth strategy centered on strategic acquisitions, international expansion, and technology investments. The company's most significant recent development is the pending acquisition of AssuredPartners, announced in late 2024, which would add approximately $2.9 billion in annual pro forma revenue and significantly expand Gallagher's middle market presence. This transformational deal is currently under regulatory review with the Department of Justice. The company has maintained an active acquisition pace, completing 48 mergers in 2024 representing nearly $900 million in estimated annualized revenue, followed by 11 additional acquisitions in Q1 2025 worth approximately $100 million. Notable acquisitions include Woodruff Sawyer, which strengthened Gallagher's position in the professional liability and technology sectors. The company maintains a robust pipeline with over 40 term sheets signed or in preparation, representing more than $1 billion in potential revenue. Operational improvements have focused heavily on technology and data analytics investments to enhance client service and improve operational efficiency. The company has expanded its global service centers, particularly in India, where it anticipates adding thousands of employees to support back-office operations and leverage cost advantages. Gallagher has also emphasized the development of specialized expertise and "centers of excellence" to serve niche markets and complex risks. Market positioning has benefited from favorable insurance market conditions, with the company successfully navigating the "hard market" environment where insurance rates have been rising across most lines of coverage. The reinsurance and specialty divisions have shown particularly strong performance, with reinsurance achieving 20% organic growth in Q1 2025 driven by new business wins and market expansion.
AJG company profile · for informational purposes only — not investment advice.
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