Page 1

Arthur J. Gallagher & Co. Segment ROLLING MEADOWS , IL , July 29 , 2021 Arthur J. Gallagher & Co. ( NYSE : AJG ) today reported its financial results for the quarter ended June 30 , 2021. Management will host a webcast conference call to discuss these results on Thursday , July 29 , 2021 at 5:15 p.m. ET / 4 : 15 p.m. CT . To listen to the call , and for printer - friendly formats of this release and the " Supplemental Quarterly Data " and " CFO Commentary , " which may also be referenced during the call , please visit ajg.com/IR . These documents contain both GAAP and non - GAAP measures . Investors and other users of this information should read carefully the section entitled " Information Regarding Non - GAAP Measures " beginning on page 10 . Brokerage , as reported Net gains on divestitures Acquisition integration Workforce and lease termination Acquisition related adjustments Levelized foreign currency translation Brokerage , as adjusted Risk Management , as reported Net gains on divestitures Workforce and lease termination Acquisition related adjustments Levelized foreign currency translation Risk Management , as adjusted Corporate , as reported Transaction - related costs U.K. - related tax rate change Corporate , as adjusted Total Company , as reported Total Company , as adjusted Total Brokerage & Risk Management , as reported Total Brokerage & Risk Management , as adjusted * * * ARTHUR J. GALLAGHER & CO . ANNOUNCES SECOND QUARTER 2021 FINANCIAL RESULTS AND $ 1.5 BILLION SHARE REPURCHASE PROGRAM * Summary of Financial Results - Second Quarter Revenues Before Reimbursements 2nd Q 21 2nd Q 20 ( in millions ) $ 1,390.2 $ 1,201.1 ( 0.5 ) ( 1.0 ) 1,389.7 245.0 ( 0.1 ) 244.9 261.6 50.5 1,250.6 190.8 4.4 195.2 159.7 261.6 159.7 $ 1,896.8 $ 1,551.6 $ 1,896.2 $ 1,605.5 $ 1,635.2 $ 1,391.9 $ 1,634.6 $ 1,445.8 Net Earnings ( Loss ) 2nd Q 21 2nd Q 20 ( in millions ) $ 227.6 $ 190.2 ( 0.4 ) ( 0.8 ) 4.7 5.1 3.1 11.5 15.3 8.3 8.9 250.3 223.2 24.9 ( 0.1 ) 0.5 0.3 25.6 9.9 3.7 1.1 0.1 14.8 ( 50.7 ) ( 38.3 ) 8.7 19.3 ( 22.7 ) ( 38.3 ) $ 201.8 $ 161.8 $ 253.2 $ 199.7 $ 252.5 $ 200.1 $ 275.9 $ 238.0 EBITDAC 2nd Q 21 2nd Q 20 ( in millions ) $ 440.0 $ 366.5 ( 0.5 ) 6.2 4.1 7.7 17.5 457.5 408.8 28.5 47.6 ( 1.0 ) 6.7 15.0 4.1 ( 0.1 ) 0.6 0.2 5.0 0.7 34.2 48.3 ( 50.1 ) ( 35.0 ) 10.2 ( 39.9 ) ( 35.0 ) $ 437.5 $ 360.0 $ 465.9 $ 408.0 $ 487.6 $ 395.0 NEWS RELEASE $ 505.8 $ 443.0 Diluted Net Earnings ( Loss ) Per Share 2nd Q 21 2nd Q 20 Chg $ 1.09 $ 0.97 0.02 0.02 0.08 1.21 0.12 0.12 ( 0.29 ) 0.04 0.09 ( 0.16 ) 0.02 0.06 0.04 $ 1.21 0.05 1.14 0.05 0.02 0.01 0.08 ( 0.23 ) ( 0.23 ) $ 0.92 $ 0.79 $ 1.17 $ 0.99 $ 1.02 $ 1.33 $ 1.22 16 % 18 % 19 % 9 % For second quarter 2021 , the pretax impact of the Brokerage segment adjustments totals $ 30.0 million , with a corresponding adjustment to the provision for income taxes of $ 7.3 million relating to these items . For second quarter 2021 , the pretax impact of the Risk Management segment adjustments totals $ 0.8 million , with a corresponding adjustment to the provision for income taxes of $ 0.1 million relating to these items . The pretax impact of the Corporate segment adjustments totals $ 10.2 million , with a corresponding adjustment to the benefit for income taxes of $ ( 17.8 ) million relating to this item and the U.K. tax item noted on page 8. A detailed reconciliation of the 2021 and 2020 provision ( benefit ) for income taxes is shown on pages 14 and 15 . ( 1 of 15 )