Earnings

On a conference call with analysts, CEO Michael Kehoe described high growth rates from over the last five years as an “anomaly” and warned investors of possible "mean reversion” ahead.

The loss was well within the company’s net retention. Losses from other weather events during the quarter added up to another $10mn-$15mn.

The carrier’s Spectrum property business grew 13%, general property in the middle market segment was up 13% as well, and large property grew 16%.

The broker’s share price fell by around 4% after the announcement of its Q3 results and extended restructuring program.

The group will look to deliver more integrated solutions to clients through increased tech spend, and will look to scale back headcount.

The unit almost doubled its organic growth rate from 11% in Q2, while in Q1 the division posted 12% organic growth.

Excluding both pending acquisitions, Gallagher has around 45 term sheets signed or being prepared, representing more than $450mn of annualized revenue.

AJ Gallagher posts 10.5% Q3 organic growth, lower sequentially but up year-on-year

As of 14:00 ET, the broker’s stock stood at $232.24 per share, 11.9% higher than the previous close of $207.74.

The broker’s Q3 organic growth was driven by specialty lines, including fac financial solutions, natural resources, surety, construction and aviation.

This year, casualty pro-rata rates overall moved about 1 point, Everest’s Jim Williamson added, noting other deals in H2 where the numbers moved more than that.

WTW said that new staff were ramping up revenue production, following a period of investment in talent.