Arthur J. Gallagher (AJG) Investor update summary

Strategy and growth

• Four long-term priorities: organic growth, M&A, productivity and quality improvement, and culture; scale supports expertise, data, client service, and merger integration.

• Since 2020, organic growth exceeded $3B and acquired annualized revenue exceeded $6B; operations reach less than 5% of the global insurance market, with EBITDAC margins up nearly 800 bps since Jan. 2020.

• Growth is supported by retention, new business, exposure growth, diversified operations, and insurance pricing across brokerage, benefits, reinsurance, and claims.

• 21 mergers completed year to date represented ~$225M of estimated annualized revenue; more than 30 signed or in-progress term sheets represented ~$400M.

• Estimated M&A funding capacity is close to $10B over two years before stock, with ~two-thirds from free cash flow and ~one-third from borrowing; tuck-in acquisition multiples expected at 9.0x–11.0x EBITDAC.

Insurance market conditions

• July–August PC brokerage renewal premium changes: property down 6%, casualty up 5%, professional lines up 2%, personal lines up 3%, and workers’ compensation up 2%; excluding property, changes were up ~3%.

• U.S. retail property renewal premiums were down ~7% in July–August versus down ~12% in Q2; timing and business mix drove the difference, not a broad market turn.

• U.S. retail casualty renewal premiums were up 7% in July–August: general liability up 3%, commercial auto up 6%, and umbrella up 9%; excluding property, renewal premium change was ~4%.

• International retail renewal premium changes were up ~1% in the U.K. and Australia and down ~4% in New Zealand; property remained under pressure.

• Reinsurance markets are well-capitalized, with price moderation in property and many specialty lines; casualty remains more sensitive to loss trends and program structure.

Business and operating updates

• Americas retail PC generated ~$3.5B revenue in 2025; pro forma revenue exceeded $5B and premium placed was ~$35B including AssuredPartners and Woodruff Sawyer.

• International retail generated ~$1.6B annual revenue and placed more than $12B of premium; London Specialty generated >$700M revenue and placed >$6B of premium annually.

• Gallagher Re is the world’s third-largest reinsurance broker, with >$1B revenue; it recorded 14% organic growth in 2025, with momentum continuing in 2026.

• Benefits revenue run rate exceeds $3B after AssuredPartners; fully insured renewals were increasing 15%–20%, stop-loss increases averaged 20% or higher, and self-funded medical claims trends were 10%–11%.

• Risk management delivered 12% organic growth and a 22.3% EBITDAC margin in Q2; outlook is ~10% organic growth for Q3 and potentially near that for FY, with margins around 22% for both periods.