Arthur J. Gallagher & Co Stock Price, News & Analysis

Arthur J. Gallagher & Co. (NYSE: AJG) announced the acquisition of JP Warner Associates, a Wayne, PA-based employee benefits consultant. Founded in 1997, JP Warner specializes in group benefit plans and human resource consulting for clients in the Philadelphia suburbs and Lehigh Valley. The terms of the acquisition were not disclosed. Jonathan P. Warner and his team will continue operations under Gallagher's Atlantic region management. This strategic move aims to enhance Gallagher's consulting capabilities in the Philadelphia area and expand services into the Lehigh Valley.

Gallagher's 2020/2021 Salary Planning Survey reveals that 45% of U.S. organizations are reassessing salary increases due to COVID-19. Data from 1,283 organizations shows 51% expect to reduce salary increases, while 45% plan to suspend them entirely. Before the pandemic, 66% of employers had already implemented pay raises. The survey indicates a shift towards variable pay models as firms seek flexible compensation strategies. This report helps employers navigate economic uncertainties while maintaining workforce stability.

Arthur J. Gallagher & Co. announced the acquisition of Effectus Consulting Pty Ltd, a Brisbane-based firm specializing in employee and leadership development. The terms of the transaction remain undisclosed. This acquisition is expected to provide Gallagher with significant cross-selling opportunities, enhancing discussions with existing clients about career benefits and organizational performance programs. Effectus will continue its operations under the leadership of Leslie Lemenager, VP-International for Gallagher's employee benefits consulting services.

Arthur J. Gallagher & Co. (NYSE: AJG) reported strong third-quarter results for 2020, with total revenues of $1.807 billion, up 1.0% year-over-year. Adjusted net earnings increased 37% to $1.08 per share, demonstrating resilient performance despite pandemic challenges. The Brokerage segment saw reported revenues rise to $1.295 billion, while Risk Management revenues totaled $202.7 million. Strong cost-saving measures resulted in approximately $70 million in estimated savings. The company maintains a robust liquidity position of $1.6 billion.

Arthur J. Gallagher & Co. (NYSE: AJG) announced a quarterly cash dividend of $0.45 per share on October 28, 2020. This dividend is payable on December 18, 2020, to stockholders of record as of December 4, 2020. The company is a global leader in insurance brokerage, risk management, and consulting, with operations in 49 countries and client service capabilities in over 150 countries.

Gallagher, a global insurance and risk management brokerage firm, published its Fall 2020 U.S. Market Conditions Report. This report reveals that 89% of clients experienced property rate increases, the highest since the early 2000s. Contributing factors to the hard market include increased liability losses, low interest rates, and the impact of the pandemic. Gallagher's proprietary data platform, Gallagher Drive, aids clients in navigating these challenges effectively.

Arthur J. Gallagher & Co. (NYSE: AJG) will publish its third quarter 2020 earnings on October 29, 2020, post-market. Following this, a conference call hosted by J. Patrick Gallagher, Jr., Chairman and CEO, is scheduled for 5:15 PM ET. This call will be accessible via Gallagher's website, with a replay available shortly after. Gallagher operates globally in 49 countries and offers services in over 150 countries, emphasizing its extensive reach in the insurance brokerage and risk management sectors.