Arthur J. Gallagher & Co. reported more than 30% revenue growth in the fourth quarter, driven by a two-pronged strategy of organic expansion and mergers & acquisitions. Organic growth contributed 5% to top-line gains, while adjusted EBITDA also rose 30%, marking the company’s 23rd consecutive quarter of double-digit adjusted EBITDA growth. For the full year, Gallagher delivered consistent momentum across its businesses, reinforcing management’s confidence in its long-term growth model.

In the brokerage segment, revenue jumped 38%, including 5% organic growth, with an adjusted EBITDA margin of 32.2%, approximately 50 basis points above expectations. Organic growth by subcategory included Americas retail P&C up 5%, UK and EMEA up 7%, APAC up 3%, U.S. wholesale up 7%, reinsurance up 8% and benefits up 1%. Gallagher Bassett, the risk management arm, posted 13% revenue growth in the quarter, with 7% organic growth and a 21.6% adjusted EBITDA margin, modestly ahead of prior guidance. Management reaffirmed plans for roughly 7% organic growth and mid-20% margins in this segment for 2026.

Overall renewal premium changes were up in the low single digits, as property premium declines of about 5% were offset by casualty increases of roughly 5%, including 7% growth in U.S. casualty. Package renewals rose 3%, workers’ compensation 1% and personal lines 5%, while directors & officers premiums were down about one point. In reinsurance, January renewals saw capacity remain ample; property rates fell in the teens, but premiums declined only in the mid- to high-single digits year over year due to higher purchasing. Management expects this buyer’s market to persist through 2026, barring unusually large loss events.

Integration of the AssuredPartners acquisition is ahead of plan, with all U.S. retail operations rebranded and back-office consolidation completed earlier than expected. The company will begin full-scale conversion of more than 300 tuck-in agencies in 2026. Annualized run-rate synergy targets remain $160 million by year-end 2026, rising to $260–$280 million by early 2028, with potential upside. Gallagher completed seven mergers in Q4 adding $145 million of annualized revenue and more than $3.5 billion in acquisitions for 2025, with a pipeline representing $350 million. Management expects mid-single-digit brokerage organic growth (around 5.5%), roughly 7% risk management growth and additional margin expansion of 40–60 basis points in brokerage for 2026, supported by robust M&A capital capacity and tax credit carryforwards totaling over $1.7 billion.