Arthur J. Gallagher & Co. reported on Thursday $2.67 billion in total revenue for the first quarter of 2023, up 14.4% from the same period a year earlier.
The brokerage reported $716.8 million in net income, up 14.4% over 2022’s first quarter.
The company’s core brokerage unit reported $2.38 billion in revenue for the quarter, up 14.1% over the comparable period.
The brokerage closed 10 acquisitions during the quarter, with estimated annual revenue of $69 million, which compared to five in last year’s first quarter.
“We had an excellent first quarter to start the year,” J. Patrick Gallagher Jr., chairman, president and CEO of Gallagher, said on a conference call with analysts late Thursday.
“Most lines are trending similar to previous quarters”; with the exception of public company directors’ and officers’ liability, where renewal premiums are “down a bit” and property renewals, where premium increases are accelerating, he said.
“Our customers continue to feel cost pressure here due to rising claims values, increasing frequency and severity of weather-related events and difficult reinsurance conditions,” Gallagher said.
He said he sees no sign that those loss costs and profitability pressures are “likely to abate in the near term.”
“There is good reason to expect a cautious stance on underwriting by carriers for the foreseeable future,” he said.
Gallagher said he expects prices to increase throughout this year, and likely into 2024.