AJG Risk Management Growth Outpaces Brokerage

Earnings
โดย Zacks Investment Research·US·Read original
Summary · why it matters

Arthur J. Gallagher & Co. reported that its Risk Management business, Gallagher Bassett, grew revenue 16% in the second quarter of 2026, including 12% organic growth, outpacing the 5% organic growth in its Brokerage segment. Management attributed the performance to strong new business and client retention, with clients seeking broader risk-management solutions. Notably, only about 1% of organic growth comes from higher insurance rates, making the 12% organic growth significant as pricing slows. Gallagher Bassett offers claims management, workers' compensation, risk consulting, and analytics, and AJG is enhancing its offerings with technology like Gallagher Blueprint. This shift could help sustain revenue growth even if insurance pricing becomes a smaller driver. Among peers, Willis Towers Watson's Risk & Broking revenue rose 11% to $1.16 billion with 7% organic growth, while Aon's Commercial Risk Solutions posted 5% organic growth. AJG shares have declined 12.2% over the past year, and the stock trades at a P/E of 18.26 versus the industry's 16.18. The Zacks Consensus Estimate for 2026 EPS implies a 24.2% year-over-year increase, with revenue expected at $13.3 billion, up 20.4%.

Impact on stocks 3

Financials▲ · 2 stocks
Arthur J Gallagher & Co
AJG
▲ PositiveDemandrelevance

Gallagher Bassett grew revenue 16% with 12% organic growth on strong new business and client retention, outpacing Brokerage's 5% organic growth.

Willis Towers Watson PLC
WTW
± MixedDemandrelevance

Mentioned only as a peer, with Willis Towers Watson's Risk & Broking revenue up 11% to $1.16 billion and 7% organic growth.

Climate Adaptation & Water▲ · 1 stocks
Aon PLC
AON
± MixedDemandrelevance

Mentioned only as a peer, with Aon's Commercial Risk Solutions posting 5% organic growth.

Off-coverage companies 1

Gallagher BassettPrivate▲ Positive
Demandrelevance

Gallagher Bassett, AJG's Risk Management unit, grew revenue 16% including 12% organic growth on strong new business and client retention.

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