Arthur J. Gallagher, a global insurance brokerage, risk management and consulting services firm, reported its financial results for the quarter ended September 30, 2023.
Third quarter global insurance renewal premiums were up 10%, at the high end of the 8 to 10% renewal premium change throughout 2022 and early 2023.
During the third quarter, and so far during fourth quarter, our data on mid-term policy endorsements, policy cancellations and claim counts is not indicating a slow-down in our customers’ business activity.
With continued insurance and reinsurance price increases, economic growth, increasing geopolitical tensions, and a growing appreciation for risk, Gallagher`s team provides clients with superior insurance and risk management solutions.
For the nine-month period ended September 30, 2023, the pretax impact of the Brokerage segment adjustments totals $632.5 million, with a corresponding adjustment to the provision for income taxes of $156.4 million relating to these items.
For the nine‑month period ended September 30, 2023, the pretax impact of the Risk Management segment adjustments totals $7.7 million, with a corresponding adjustment to the provision for income taxes of $2.1 million relating to these items.
The financial results for 9M 2023
At September 30, 2023, Gallagher had $2,550.0 million of borrowings from public debt, $3,948.0 million of borrowings from private placements and no borrowings under its line of credit facility.
Gallagher had $279 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations.
As previously announced, on June 22, 2023, Gallagher entered into a new Credit Agreement that provides for a five-year unsecured revolving credit facility in the amount of $1.2 billion (including a $75 million letter of credit sub-facility).
Gallagher may also, upon the agreement of the lenders, increase the commitments under the Credit Agreement up to $1.7 billion. Banking costs in third quarter 2023 and the nine-month period ended September 30, 2023 are consistent with the same periods in 2022.
