trending Market Intelligence /marketintelligence/en/news-insights/trending/8-usqtfvtk9myybirocxpw2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Arthur J. Gallagher sees continued growth amid 'unquenchable' supply of brokers


Q&A: Navigating Climate Risk as a Financial Risk

Infrastructure Issues: Tools to Dig Deep on Potential Risks

Part Two IFRS 9 Blog Series: The Need to Upgrade Analytical Tools

2018 US Property Casualty Insurance Market Report

Arthur J. Gallagher sees continued growth amid 'unquenchable' supply of brokers

Arthur J. Gallagher & Co. CEO Pat Gallagher Jr. shrugged off concerns about the Illinois-based insurance broker's ability to sustain growth through M&As for a longer term, saying that there is a "never-ending" supply of brokers that could potentially be up for grabs.

"The supply and the fragmentation of the market is unquenchable," Gallagher said during a July 26 earnings call. "As far forward as you can see, we will not have a lack of supply."

The comments came after Arthur J. Gallagher announced that it had a number of successful deal closings in the first half of 2018.

CFO Douglas Howell said Arthur J. Gallagher is poised to continue its M&A success in the second half of the year as the insurance broker had about $350 million of available cash on its balance sheet as of June 30 that could be used for future transactions.

"We have a full pipeline of attractive tuck-in merger opportunities," Howell said. "Clearly, we don't expect all of these acquisitions to close. However, we believe we will get our fair share."