Arthur J. Gallagher & Co. Projects 6% Revenue Growth in 2026

Arthur J. Gallagher & Co. projects an organic revenue growth rate near 6% for 2026, consistent with its 2025 performance, as stated by CEO J. Patrick Gallagher Jr. During the fourth-quarter earnings call, Gallagher highlighted trends in insurance pricing and economic conditions, noting declining property insurance rates and rising casualty insurance premiums. He emphasized the economic stability among the company’s clientele, a key indicator of risk management efficiency and regulatory compliance readiness.

For Q4 2025, Gallagher reported revenue of $3.59 billion, marking a significant 33.9% year-over-year growth. Excluding acquisitions and currency impacts, the organic revenue growth was 5%. The quarter included seven acquisitions, a stark contrast to the 20 in the same period of 2024. Notably, Gallagher completed its largest acquisition to date, AssuredPartners, for $13.8 billion in Q3, a strategic move for enhancing their underwriting and claims capabilities.

Brokerage Division Growth

In the primary brokerage division, Gallagher achieved a revenue of $3.17 billion, reflecting a 38% increase with 4% organic growth. Business line analysis revealed a 5% increase for U.S. retail, 7% for U.S. wholesale and specialty, 8% for reinsurance, and 1% for benefits. "The brokerage segment is projected for around 5.5% organic growth in 2026," remarked Mr. Gallagher, suggesting a strong alignment with carrier and payer demands.

Economic indicators show that Gallagher's clients began 2026 with improved business activities compared to the third quarter. Although property insurance rates are softening, other insurance lines continue to see premium increases, driven by regulatory compliance requirements and evolving risk management practices.

Risk Management and Financial Performance

Gallagher's risk management division, including Gallagher Bassett, reported a 13% revenue increase to $417 million. Quarterly net earnings fell by 40.3% to $154 million, but earnings before interest, taxes, depreciation, amortization, and coronavirus adjustments rose by 33.5%, reaching $710 million. For the full year 2025, revenue increased by 20.8% to $13.8 billion, with a 6% organic rise. Net earnings improved by 2.2% to $1.5 billion, while EBITDAC grew by 17.7% to $3.68 billion, reflecting robust financial health despite AI-driven prior authorization delays impacting the wider industry.

Throughout 2025, Gallagher finalized 33 acquisitions, resulting in an estimated $3.56 billion annual revenue increase, surpassing the previous year's 48 acquisitions totaling $387 million. This strategic growth underscores Gallagher's position within the insurance industry, aligning closely with evolving regulatory frameworks and market conditions, offering valuable insights for industry professionals seeking comprehensive market analysis.