Arthur J. Gallagher (AJG) investor relations material

Growth strategy and market positioning

• Pursuing a two-pronged growth strategy: organic growth and M&A, with organic as the primary pillar and M&A as a key complement.

• Insurance market remains highly fragmented, with significant opportunity for expansion both in the U.S. and internationally.

• Integration of AssuredPartners is progressing well, expected to drive growth above 20% in 2026.

• Strong focus on productivity, quality, and leveraging offshore centers of excellence for operational efficiency.

• Pipeline for tuck-in acquisitions remains robust, with dozens of letters of intent and hundreds of ongoing conversations.

Organic growth initiatives and value proposition

• CORE360 provides a unified value proposition, leveraging data and expertise to deliver tailored insurance solutions globally.

• Specialty and benefits businesses are expanding through niche practice groups and data-driven customization.

• Gallagher Drive and SmartMarket platforms enhance data analytics, carrier relationships, and market efficiency.

• Digital tools like Gallagher Submit and Go streamline submissions, improve client experience, and increase retention.

• Advantage products offer enhanced coverage and compensation, with AP business rolling into these offerings in 2026.

M&A strategy and integration

• Focused on acquiring culturally aligned, entrepreneurial firms, primarily under $10 million in revenue, but open to larger deals.

• M&A pipeline strengthened by AP’s unique deal flow, with local empowerment to source acquisitions.

• Integration of AP emphasizes cultural fit, access to digital tools, and cross-division collaboration for organic growth.

• Retention of key producers is strong, supported by equity incentives and a fairness approach across legacy and acquired teams.

• $10 billion in free cash and additional debt capacity available for future M&A, with disciplined approach to deal selection.