Arthur J. Gallagher & Co. reported strong financial results for the second quarter of 2025, with adjusted EBITDAC rising 23% year-on-year to $1.01 billion and adjusted net earnings climbing to $609.1 million, up from $511.2 million a year earlier.
Diluted net earnings per share on an adjusted basis reached $2.33, compared to $2.29 in Q2 2024.
The group’s brokerage segment saw revenue increase 16% to $2.78 billion, while adjusted EBITDAC for the segment rose to $1.01 billion. Gallagher’s risk management business, which includes its claims administration arm Gallagher Bassett, posted revenue of $391.8 million, up 9% from the same period last year.
Chairman and CEO J. Patrick Gallagher, Jr. highlighted the firm’s consistent growth trajectory, noting 21 consecutive quarters of double-digit adjusted EBITDAC growth. Organic revenue growth stood at 5.4% across the core brokerage and risk management segments.
Gallagher completed nine acquisitions during the quarter, representing approximately $290 million in estimated annualised revenue. The company also said it was making progress toward completing its previously announced $13.45 billion acquisition of AssuredPartners, expected to close in the third quarter of 2025.
The company described the global property and casualty (P&C) insurance market as "rational," with softening in property lines but continued hardening in casualty. On average, property renewals declined by 7% while casualty rates rose 8%.
In London, where Gallagher operates through its specialty unit Gallagher Re and other divisions, the market remained competitive, especially across marine, energy, and financial lines. Rate momentum in the London Market has begun to stabilise after several years of firm conditions, with brokers reporting more scrutiny around casualty treaty renewals and longer placement timelines in cyber and D&O classes. Gallagher’s footprint in London also positions it to capitalise on continued demand for reinsurance and wholesale distribution capabilities, especially as clients navigate inflation-linked exposures and evolving regulatory pressures.
“While we continue to monitor underwriting appetite shifts in London and globally, our teams are focused on delivering value through specialist expertise and data-driven solutions,” said Gallagher.
As of June 30, the company had over $12.8 billion in total debt following its financing for the AssuredPartners deal, which included both equity and senior notes issuances in late 2024.
