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November 2025 Arthur J. Gallagher & Co. Investor Presentation
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2 ©2025 ARTHUR J. GALLAGHER & CO. CAUTIONARY NOTE ON REVENUE COMPARISONS PRIOR TO 2016 & INFORMATION ON FORWARD- LOOKING STATEMENTS Revenue Recognition Accounting Standard The financial information in the slides that follow for any period prior to 2016 is presented under “Old GAAP” – i.e., before implementation of the changed revenue recognition accounting standard (ASC Topic 606), which we adopted as of January 1, 2018, using the full retrospective method. Information Regarding Forward-Looking Statements This presentation contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future of Arthur J. Gallagher & Co. and its subsidiaries, collectively referred to herein as we, our, us, Gallagher or the company, which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this presentation, the words “anticipates,” “believes,” “contemplates,” “see,” “should,” “could,” “will,” “estimates,” “expects,” “intends,” “plans” and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements in this presentation include, but are not limited to, statements regarding: (i) future dividends; (ii) improvements in our new business production; (iii) global brand recognition; (iv) the leveraging of internal resources across divisions and borders; (v) our status as the premier provider of claims management services; (vi) our global presence in the claims space; (vii) our ability to stay in front of improvements in technology; (viii) commercial P/C pricing; (ix) drivers and expected levels of our organic growth; (x) future M&A opportunities, including bolt-on and tuck-in acquisitions to our “platforms”; (xi) increasing productivity and quality; (xii) our management team; (xiii) our use of leverage; (xiv) our balance sheet; (xv) our return to shareholders; (xvi) the premium rate environment; (xvii) impact of general economic conditions, including inflation and related monetary policy in response to inflation; and (xviii) tax credit carryforwards and expected future cash taxes paid as a result of our clean energy investments. Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; geo-economic fragmentation and protectionism such as tariffs, trade wars or similar governmental actions affecting the flows of goods, services or currency; the U.S. government shutdown; political violence and instability, such as the armed conflicts in Ukraine and the Middle East; its actual acquisition opportunities, including closing risks related to pending acquisitions, risks with respect to acquisitions larger than its usual tuck-in acquisitions, such as the acquisition of Buck, Cadence Insurance, Eastern Insurance Group, Woodruff Sawyer and AssuredPartners, including risks related to its ability to successfully integrate operations, the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize the expected benefits of these acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate-related regulations, such as risks related to “greenwashing” and “greenhushing”; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry’s competitive landscape. Please refer to our filings with the Securities and Exchange Commission, including Item 1A, “Risk Factors,” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and our subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact our forward-looking statements. Any forward-looking statement we make in this presentation speaks only as of the date on which it is made. Except as required by applicable law, we do not undertake to update the information included herein.
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3 ©2025 ARTHUR J. GALLAGHER & CO. INFORMATION REGARDING NON-GAAP MEASURES In addition to reporting financial results in accordance with GAAP, this presentation provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this presentation. Gallagher’s management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher’s results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher’s performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher’s industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC. Earnings Measures - Gallagher believes that each of EBITDAC, as Adjusted and EBITDAC margin, as Adjusted, as defined below, provides a meaningful representation of its operating performance and improves the comparability of Gallagher’s results between periods by eliminating the impact of certain items that have a high degree of variability. • EBITDAC is defined as net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables. • EBITDAC, as Adjusted is EBITDAC further adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, legal and tax related costs, and the period-over-period impact of foreign currency translation, as applicable. • EBITDAC margin, as Adjusted is defined as Adjusted EBITDAC divided by Adjusted Revenues (defined below). Revenue and Expense Measures - Gallagher believes that Adjusted Revenues and Adjusted Operating Expense Ratio, each as defined below, provides stockholders and other interested persons with useful information that will assist such persons in analyzing Gallagher’s operating results as they develop a future outlook for Gallagher. Gallagher believes that Organic Revenue provides a comparable measurement of revenue growth that is associated with the revenue sources that will continue in the future. Gallagher has historically viewed organic revenue as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this measure allows financial statement users to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner. • Adjusted Revenues is defined as revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment beginning in 2016) adjusted to exclude net gains realized on divestitures, acquisition related adjustments and other non-recurring items, acquisition integration costs for workforce related charges, lease termination related charges, and the period-over-period impact of foreign currency translation, as applicable. • Adjusted Operating Expense Ratio is defined as operating expense, adjusted to exclude the items listed above for Adjusted Revenues, as applicable, divided by Adjusted Revenues. • Organic Revenue. For the Brokerage segment, organic change in base commission and fee revenues, supplemental revenues and contingent revenues exclude the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. These revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In addition, organic change in base commission and fee revenues, supplemental revenues and contingent revenues excludes the period-over-period impact of foreign currency translation to improve the comparability of its results between periods. For the Risk Management segment, organic change in fee revenues excludes the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each year presented. In addition, change in organic growth in fee revenues excludes the period-over-period impact of foreign currency translation to improve the comparability of its results between periods. Reconciliations – Please see pages 43 to 52 of this presentation for reconciliations of historical non-GAAP information to the closest GAAP information. The non-GAAP information provided in this presentation should be used in addition to, but not as a substitute for, GAAP information.
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4 ©2025 ARTHUR J. GALLAGHER & CO. WHO WE ARE • Founded in 1927 • Public since 1984 • One of the World’s leading insurance brokers (1) • One of the World’s largest P&C third-party administrators (1) As of September 30, 2025, unless otherwise noted. (1) According to Business Insurance. (2) Gallagher provides insurance brokerage, risk management and consulting services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants. The map above includes international correspondent broker network countries. See page 31. (3) As of October 31, 2025. (4) Includes Brokerage & Risk Management segments for the trailing twelve months ended September 30, 2025. Adjusted revenue shown before reimbursements. 130 Countries (2) $12.9 Acquired B Revenue (4) $ 0.65 Key Shareholder Data 1.0% Yield (3) $351.23 High $242.75 Low 52-Week Range (3) 256.8 AJGNYSE Adjusted B Revenue (4) $3.6 Key Facts 71,059 Employees $64.1 Market B Capitalization (3) 2025 Q4 Dividend/Share Outstanding M Shares (3)
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5 ©2025 ARTHUR J. GALLAGHER & CO. GALLAGHER MISSION STATEMENT We are an international Sales and Marketing company that plans and administers cost- effective, differentiated property/casualty and human resource risk management programs as brokers, consultants and third-party administrators. Our mission is to: • Provide superior, cost-effective risk management products and services that meet the ever-changing needs of our current and prospective clients, while continuing to strive for the highest professional excellence in the delivery of those products and services. • Provide our employees with an opportunity for professional growth, personal satisfaction and financial security. • Build and maintain long-lasting, consistent, honest and profitable relationships with our insurance markets, who we recognize play a crucial role in meeting our clients’ risk management needs. • Grow shareholder value by increasing our client base, dedicating ourselves to increased productivity, profitability and professionalism resulting in long-term earnings-per-share growth. We will accomplish our mission with the kind of leadership that will ensure perpetuation of our corporate culture. We will also adhere to rigid moral and ethical standards in all of our dealings as we look to the challenges of the future with confidence in our ability to create and maintain a Gallagher Team that is the very best at what we do.
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6 ©2025 ARTHUR J. GALLAGHER & CO. • 88% of revenue* • We advise and consult on insurance programs and place insurance for clients • Property/Casualty and employee benefits • Retail, wholesale and reinsurance • Middle-market commercial focus, while also serving small businesses, risk management accounts and individuals • 76% of Commission & Fee revenue is commission-based, 24% is fee-based** BROKERAGE SEGMENT RISK MANAGEMENT SEGMENT • 12% of revenue* • We adjust claims and help companies and carriers reduce theirlosses • Workers’ compensation, liability, managed care, auto and property • Modest amount of storm/earthquakeclaims • Primarily Fortune 1000clients • Approximately 94% of 2024 revenue from non-affiliated brokerage customers and their clients *Adjusted Brokerage and Risk Management segment revenue before reimbursements for the trailing twelve months ended September 30, 2025. **Adjusted Brokerage segment revenue for the trailing twelve months ended September 30, 2025. SNAPSHOT OF CORE OPERATIONS
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7 ©2025 ARTHUR J. GALLAGHER & CO. Risk Management Brokerage DIVERSE REVENUE BASE Brokerage and Risk Management segments for the trailing twelve months ended September 30, 2025. 51% 23% 14% 12% Retail P/C Retail Benefits Wholesale Reinsurance 64% 36% Domestic International 60% 34% 6% Workers' Compensation General Liability Property 80% 20% Domestic International
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8 ©2025 ARTHUR J. GALLAGHER & CO. $2,942 $3,677 $500 $1,500 $2,500 $3,500 $4,500 YTD 3Q 24 YTD 3Q 25 Adjusted EBITDAC (M) 33.9% 36.1% 25.0% 30.0% 35.0% 40.0% YTD 3Q 24 YTD 3Q 25* Adjusted EBITDAC Margin 7.7% 6.5% 4.0% 6.0% 8.0% 10.0% YTD 3Q 24 YTD 3Q 25 Organic Revenue Growth $8,691 $10,186 $3,000 $6,000 $9,000 $12,000 YTD 3Q 24 YTD 3Q 25 Adjusted Revenues (M) BROKERAGE & RISK MANAGEMENT SEGMENTS COMBINED – 2025 +17% +25% +220 bps Brokerage and Risk Management segments YTD ended September 30, 2024, and September 30, 2025. * Brokerage segment margins benefited from approx.$363 million of interest income earned on the proceeds received from the Decem ber 2024 AssuredPartners Financing. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52.
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9 ©2025 ARTHUR J. GALLAGHER & CO. 26.9% 33.3% 25.0% 30.0% 35.0% 40.0% 2019 2024 Adjusted EBITDAC Margin $1,525 $3,775 $500 $1,500 $2,500 $3,500 $4,500 2019 2024 Adjusted EBITDAC (M) 15% CAGR BROKERAGE & RISK MANAGEMENT SEGMENTS COMBINED – 5 YR VIEW Brokerage and Risk Management segments for the full year ended December 31, 2019, and December 31, 2024. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52. +640 bps20% CAGR $5,665 $11,334 $3,000 $6,000 $9,000 $12,000 2019 2024 Adjusted Revenues (M)
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10 ©2025 ARTHUR J. GALLAGHER & CO. 35.7% 38.0% 25.0% 30.0% 35.0% 40.0% YTD 3Q 24 YTD 3Q 25* Adjusted EBITDAC Margin $2,720 $3,431 $500 $1,500 $2,500 $3,500 $4,500 YTD 3Q 24 YTD 3Q 25 Adjusted EBITDAC (M) $7,613 $9,019 $3,000 $6,000 $9,000 $12,000 YTD 3Q 24 YTD 3Q 25 Adjusted Revenues (M) +18% +26% BROKERAGE SEGMENT – 2025 7.6% 6.6% 4.0% 6.0% 8.0% 10.0% YTD 3Q 24 YTD 3Q 25 Organic Revenue Growth +230 bps Brokerage segment YTD ended September 30, 2024, and September 30, 2025. * Brokerage segment margins benefited from approx.$363 million of interest income earned on the proceeds received from the Decem ber 2024 AssuredPartners Financing. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52.
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11 ©2025 ARTHUR J. GALLAGHER & CO. $4,826 $9,884 $3,000 $6,000 $9,000 $12,000 2019 2024 Adjusted Revenues (M) $1,379 $3,475 $500 $1,500 $2,500 $3,500 $4,500 2019 2024 Adjusted EBITDAC (M) 28.6% 35.2% 25.0% 30.0% 35.0% 40.0% 2019 2024 Adjusted EBITDAC Margin 15% CAGR BROKERAGE SEGMENT – 5 YR VIEW +660 bps20% CAGR Brokerage segment for the full year ended December 31, 2019, and December 31, 2024. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52.
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12 ©2025 ARTHUR J. GALLAGHER & CO. 8.9% 5.6% 4.0% 6.0% 8.0% 10.0% YTD 3Q 24 YTD 3Q 25 Organic Revenue Growth $1,078 $1,167 $400 $700 $1,000 $1,300 $1,600 YTD 3Q 24 YTD 3Q 25 Adjusted Revenues (M) $223 $246 $110 $160 $210 $260 $310 YTD 3Q 24 YTD 3Q 25 Adjusted EBITDAC (M) 20.6% 21.1% 20.0% 20.5% 21.0% 21.5% YTD 3Q 24 YTD 3Q 25 Adjusted EBITDAC Margin +8% +11% RISK MANAGEMENT SEGMENT – 2025 Risk Management segment YTD ended September 30, 2024, and September 30, 2025. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52. +50 bps
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13 ©2025 ARTHUR J. GALLAGHER & CO. $839 $1,450 $400 $700 $1,000 $1,300 $1,600 2019 2024 Adjusted Revenues (M) $146 $300 $110 $160 $210 $260 $310 2019 2024 Adjusted EBITDAC (M) 17.4% 20.7% 16.0% 18.0% 20.0% 22.0% 2019 2024 Adjusted EBITDAC Margin RISK MANAGEMENT SEGMENT – 5 YR VIEW 12% CAGR +330 bps16% CAGR Risk Management segment for the full year ended December 31, 2019, and December 31, 2024. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52.
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14 ©2025 ARTHUR J. GALLAGHER & CO. The amounts above represent the outstanding deferred tax asset associated with tax credit carryforwards on our balance sheet at each period end. *The tax credit carryforward balance as of December 31, 2023, reflects a change in method election made in fourth quarter 2023 w hen filing 2022 US Federal tax return. **As of September 30, 2025. TAX CREDIT CARRYFORWARDS $112 $147 $233 $342 $478 $683 $857 $962 $998 $1,074 $773 $867 $772 $706 $0 $200 $400 $600 $800 $1,000 $1,200 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023* 2024 2025**
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15 ©2025 ARTHUR J. GALLAGHER & CO. *Indicated based on annualized quarterly cash dividend of $0.65 / share. On October 29, 2025, Gallagher’s Board of Directors declared a $0.65 / share fourth quarter 2025 dividend. $2.60* DIVIDENDS PER SHARE $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00
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16 ©2025 ARTHUR J. GALLAGHER & CO. $3.4B in estimated annual acquired revenues* 26 new merger partners* Fair valuations tuck-in opportunities Focus on * Brokerage and Risk Management segments YTD ended September 30, 2025. 2025 M&A HIGHLIGHTS On August 18, 2025, Gallagher acquired AssuredPartners for approximately $13.8 billion. Gallagher raised $8.5 billion of cash in its December 11, 2024, follow-on common stock offering and borrowed $5.0 billion of cash in its December 19, 2024, senior notes issuance to fund the transaction. On January 7, 2025, Gallagher received an additional $1.3 billion of cash due to the exercise by the underwriters of the overallotment provision related to the follow-on common stock offering.
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17 ©2025 ARTHUR J. GALLAGHER & CO. BROKERAGE SEGMENT • Increasing global presence in claims space • Building out specialty claims handling capabilities (outside of WC and GL) • Developing, building and harnessing improving technology • Growing brand recognition globally • Leveraging resources across borders RISK MANAGEMENT SEGMENT • Driving new business production • Continuing tuck-in M&A • Growing global brand recognition • Leveraging internal resources and processes across divisions • Increasing data utilization to deliver a better client experience WHERE WE ARE GOING
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18 ©2025 ARTHUR J. GALLAGHER & CO. 80 90 100 110 120 130 140 150 160 170 180 190 Rates 148 CPI 186 US Commercial Rate Index measures P&C premium costs relative to 2000. Constructed using Counsel of Insurance Agents and Brokers (CIAB) data. CPI index uses data from the Bureau of Labor Statistics. US COMMERCIAL P/C PRICING & INFLATION
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19 ©2025 ARTHUR J. GALLAGHER & CO. US COMMERCIAL P/C PRICING Reflects Counsel of Insurance Agents and Brokers (CIAB) data. Commercial Casualty represents the average of commercial auto, workers comp, general liability, umbrella, cyber and D&O. -5% 0% 5% 10% 15% Commercial Casualty -10% -5% 0% 5% 10% 15% 20% 25% Commercial Property
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20 ©2025 ARTHUR J. GALLAGHER & CO. CIAB figures represent full-year average change in commercial premiums for each respective year. 2025 CIAB figure represents 1H 2025 average change in commercial premiums. Gallagher Brokerage Organic excludes contingent commissions. 2025 Gallagher Brokerage Organic YTD through September 30, 2025. See Cautionary Note on page 2 regarding the ASC 606 revenue recognition accounting standard. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52. SALES CULTURE PERFORMS THROUGH CYCLES Hard Market Firm MarketSoft Market Shallow Market 19.8%19.8% 8.1% -4.1% -8.0% -5.2% -12.1% -11.0% -5.4% -5.6% 0.2% 4.4%3.8% 0.1% -2.9% -3.5% -1.6% 1.8% 5.6% 9.8% 9.0% 7.5% 8.2% 5.9% 4.0% 14.4% 15.6% 9.5% 1.9% 2.0% 4.8% 1.9% -0.3% -2.4%-1.7% 3.1% 4.4% 4.2% 3.8% 3.8% 3.4% 4.6% 6.0% 5.5% 3.1% 7.5% 9.7% 8.8% 7.6% 6.7% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CIAB - Change in Avg. Commercial Rates Gallagher Brokerage Organic
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21 ©2025 ARTHUR J. GALLAGHER & CO. CONSISTENT GROWTH STRATEGY
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22 ©2025 ARTHUR J. GALLAGHER & CO. CONSISTENT GROWTH STRATEGY: ORGANIC
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23 ©2025 ARTHUR J. GALLAGHER & CO. GBS People Strategy DRIVING BROKERAGE ORGANIC GROWTH
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24 ©2025 ARTHUR J. GALLAGHER & CO. Aviation Automotive Affinity Real Estate / Hospitality Global Risks Construction Personal Marine Higher / K12 Education Healthcare Environmental Entertainment Energy Private Client Public Sector Religious Restaurant Technology & Communications Trade Credit / Political Risk Transportation Financial Institutions Nonprofit Equity Advisors Food/Agribusiness Life Sciences Law Firms Manufacturing Retail and Services NICHE EXPERTISE TEAMS – BROKERAGE
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25 ©2025 ARTHUR J. GALLAGHER & CO. DRIVING RISK MANAGEMENT ORGANIC GROWTH
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26 ©2025 ARTHUR J. GALLAGHER & CO. ALTERNATIVE MARKET PARTICIPANTS LARGE COMMERCIAL ENTITIES PUBLIC SECTOR ENTITIES INSURANCE CARRIERS RISK MANAGEMENT GROWTH FOCUSES ON FOUR MARKET SEGMENTS
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27 ©2025 ARTHUR J. GALLAGHER & CO. CONSISTENT GROWTH STRATEGY: M&A
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28 ©2025 ARTHUR J. GALLAGHER & CO. $0 $250 $500 $750 $1,000 $1,250 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* U.S. Property & Casualty Risk Management Employee Benefits Non-U.S. Property & Casualty Reinsurance $2,500 $2,750 $3,000 $3,250 $3,500 ACQUISITION REVENUE GROWTH Annualized revenues acquired ($M’s). * Nine months ended September 30, 2025.
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29 ©2025 ARTHUR J. GALLAGHER & CO. Vast Pipeline Domestic and international markets highly fragmented 18,000+ agents/ brokers just in the U.S. Need Gallagher’s expertise Acquisition Units Retail P&C Wholesale Benefits MGA/MGU Captive TPA Reinsurance Limited Strategic Consolidators Ability to reinvest in: - People - Systems - Data & Analytics Core Competency Culture Proven history Ability to integrate M&A OPPORTUNITIES CONTINUE
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30 ©2025 ARTHUR J. GALLAGHER & CO. PLATFORMS IN PLACE FOR BOLT-ON M&A
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31 ©2025 ARTHUR J. GALLAGHER & CO. Client Capabilities in Approximately 130 Countries INTERNATIONAL CORRESPONDENT BROKER NETWORK
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32 ©2025 ARTHUR J. GALLAGHER & CO. PRODUCTIVITY AND QUALITY
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33 ©2025 ARTHUR J. GALLAGHER & CO. CONTINUE TO IMPROVE PRODUCTIVITY & QUALITY Utilizing Centers of Excellence Utilizing Sourcing to Manage Expenses Leveraging Sales Force Management Tools Harmonizing Agency Systems Investing in Business Intelligence, Data & Analytics Standardizing Processes Enhancing Productivity Tools – DMS and Workflow Optimizing Real Estate Footprint CONTINUE TO IMPROVE PRODUCTIVITY & QUALITY OPTIMIZING PRODUCTIVITY AND QUALITY
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34 ©2025 ARTHUR J. GALLAGHER & CO. Accounting support Claims support Policy checking & issuance Analytics & Robotics Certificates of insurance Renewal support Approximately 16,700 associates • Increase quality • Improve process • Control operating costs • Reduce E&O costs • Easy for new acquisitions to leverage Centers of Excellence Update BEHIND THE SCENES EFFORTS
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35 ©2025 ARTHUR J. GALLAGHER & CO. Increase Speed to Market Reduce Costs Focus on Core Improve Quality Foster Innovation Increase Speed to Market Reduce Costs Focus on Core Improve Quality Foster Innovation BENEFITS FROM CENTERS OF EXCELLENCE
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36 ©2025 ARTHUR J. GALLAGHER & CO. Brokerage Risk Management REDUCED ADJUSTED OPERATING EXPENSE RATIO See Cautionary Note on page 2 regarding the ASC 606 revenue recognition accounting standard. 2025 represents the trailing twelve months ended September 30, 2025. 2008 represents the full year ended December 31, 2008. Ratios from 2025 reflect the adoption of ASC 606, while ratios from 2008 do not. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52. 20.8% 12.4% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 2008 2025 27.0% 18.6% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 2008 2025
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37 ©2025 ARTHUR J. GALLAGHER & CO. See Cautionary Note on page 2 regarding the ASC 606 revenue recognition accounting standard. 2016 & 2017 Brokerage and Risk M anagement segment adjusted EBITDAC margin has been restated to reflect the ASC 606 revenue recognition accounting standard. See important disclosures regarding Non-GAAP measures on Page 3 and reconciliations on pages 43 to 52. * Trailing twelve months ended September 30, 2025. BROKERAGE & RISK MANAGEMENT ADJUSTED EBITDAC MARGIN 20.3% 21.1% 22.2% 23.6% 24.5% 25.0% 25.6% 26.0% 26.9% 30.7% 31.8% 32.1% 32.5% 33.3% 35.1% 18.0% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025*
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38 ©2025 ARTHUR J. GALLAGHER & CO. Best Places to Work for Disability Inclusion – 2025 DISABILITY EQUALITY INDEX Platinum Bell Seal Certification for Workplace Mental Health – 2025 MENTAL HEALTH AMERICA Best Places to Work for LGBTQ+ Equality – 2025 HUMAN RIGHTS CAMPAIGN CORPORATE EQUALITY INDEX Recognized as a World’s Best Company – 2025 TIME MAGAZINE Best Places to Work for Disability Inclusion – 2024 DISABILITY EQUALITY INDEX Platinum Bell Seal Certification for Workplace Mental Health – 2024 MENTAL HEALTH AMERICA America’s Greatest Workplaces for Women – 2024 FORBES MAGAZINE Claims Specialist – 2023 (Gallagher Bassett) CAPTIVE REVIEW Elite 50 Internships – 2023 RISE 50 ELITE Top 10 Best Insurance Employers – 2023 (RPS) INSURANCE BUSINESS AMERICA Best Place to Work for LGBTQ+ Equality – 2023 HUMAN RIGHTS CAMPAIGN CORPORATE EQUALITY INDEX America’s Best Large Employers – 2023 FORBES MAGAZINE Best Place to Work for LGBTQ+ Equality – 2022 HUMAN RIGHTS CAMPAIGN CORPORATE EQUALITY INDEX Awards & Recognitions
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39 ©2025 ARTHUR J. GALLAGHER & CO. MAINTAIN UNIQUE CULTURE
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40 ©2025 ARTHUR J. GALLAGHER & CO. The Gallagher Way since 1927 MAINTAIN UNIQUE CULTURE Shared values at Arthur J. Gallagher & Co. are the rock foundation of the Company and our Culture. What is a Shared Value? These are concepts that the vast majority of the movers and shakers in the Company passionately adhere to. What are some of Arhtur J. Gallagher & Co’s Shared Values? 1. We are a Sales and Marketing Company dedicated to providing excellence in Risk Management Services to our clients. 2. We support one another. We believe in one another. We acknowledge and respect the ability of one another. 3. We push for professional excellence. 4. We can all improve and learn from one another. 5. There are no second-class citizens—everyone is important and everyone’s job is important. 6. We’re an open society. 7. Empathy for the other person is not a weakness. 8. Suspicion breeds more suspicion. To trust and be trusted is vital. 9. Leaders need followers. How leaders treat followers has a direct impact on the effectiveness of the leader. 10. Interpersonal business relationships should be built. 11. We all need one another. We are all cogs in a wheel. 12. No department or person is an island. 13. Professional courtesy is expected. 14. Never ask someone to do something you wouldn’t do yourself. 15. I consider myself support for our Sales and Marketing. We can’t make things happen without each other. We are a team. 16. Loyalty and respect are earned—not dictated. 17. Fear is a turnoff. 18. People skills are very important at Arthur J. Gallagher & Co. 19. We’re a very competitive and aggressive company. 20. We run to problems—not away from them. 21. We adhere to the highest standards of moral and ethical behavior. 22. People work harder and are more effective when they’re turned on —not turned off. 23. We are a warm, close Company. This is a strength —not a weakness. 24. We must continue building a professional Company —together—as a team. 25. Shared values can be altered with circumstances —but carefully and with tact and consideration for one another’s needs. When accepted Shared Values are changed or challenged, the emotional impact and negative feelings can damage the Company. - Robert E. Gallagher May 1984
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41 ©2025 ARTHUR J. GALLAGHER & CO. You Believe Our Company Has: • Right management • Unique culture • Proven growth strategy • Continuing M&A opportunities • Increasing productivity/quality • Good use of leverage • Strong balance sheet • Excellent return to shareholders GALLAGHER IS WELL-POSITIONED FOR FUTURE GROWTH WHY INVEST?
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42 ©2025 ARTHUR J. GALLAGHER & CO. -100% 400% 900% 1400% 1900% 2400% 2900% 3400% 3900% 4400% 3,949% AJG S&P 500 632% Source: Bloomberg. Total returns from 1/1/2000 – 9/30/2025. Includes reinvestment of dividends. WHY INVEST? WE ARE JUST GETTING STARTED!
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43 ©2025 ARTHUR J. GALLAGHER & CO. NON-GAAP RECONCILIATIONS – ORGANIC REVENUES Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Organic Revenues (Non-GAAP) Brokerage Segment 2023 2024 2023 2024 2023 2024 2023 2024 Total commissions, fees, supplemental revenues and contingent revenues, as reported 2,313.5$ 2,780.2$ 2,014.3$ 2,287.9$ 2,028.9$ 2,271.4$ 6,356.7$ 7,339.5$ Less commissions, fees, supplemental revenues and contingent revenues from acquisitions - (253.7) - (142.0) - (141.0) - (536.7) Less divested operations - - (13.2) - (30.3) - (43.5) - Levelized foreign currency translation 6.6 - (7.7) - 11.1 - 10.0 - Total organic commissions, fees, supplemental revenues and contingent revenues 2,320.1$ 2,526.5$ 1,993.4$ 2,145.9$ 2,009.7$ 2,130.4$ 6,323.2$ 6,802.8$ Total organic change 8.9% 7.7% 6.0% 7.6% Ris k Management Segment 2023 2024 2023 2024 2023 2024 2023 2024 Fees , as reported 293.0$ 344.5$ 312.0$ 349.5$ 323.1$ 359.8$ 928.1$ 1,053.8$ Less fees from acquisitions - (13.7) - (14.4) - (17.3) - (45.4) Less divested operations - - - - (2.3) - (2.3) - Levelized foreign currency translation (1.1) - (0.7) - 2.4 - 0.6 - Organic fees 291.9$ 330.8$ 311.3$ 335.1$ 323.2$ 342.5$ 926.4$ 1,008.4$ Organic change in fees 13.3% 7.7% 6.0% 8.9% Brokerage and Ris k Management Segments 2023 2024 2023 2024 2023 2024 2023 2024 Brokerage total organic commissions, fees, supplemental revenues and contingent revenues 2,320.1$ 2,526.5$ 1,993.4$ 2,145.9$ 2,009.7$ 2,130.4$ 6,323.2$ 6,802.8$ Risk Management Segment organic fees 291.9 330.8 311.3 335.1 323.2 342.5 926.4 1,008.4 Total organic commissions, fees, supplemental 2,612.0$ 2,857.3$ 2,304.7$ 2,481.0$ 2,332.9$ 2,472.9$ 7,249.6$ 7,811.2$ Total organic change 9.4% 7.7% 6.0% 7.7% 2nd Q 2024 YTD 3Q 20241Q 2024 3rd Q 2024
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44 ©2025 ARTHUR J. GALLAGHER & CO. NON-GAAP RECONCILIATIONS – ORGANIC REVENUES (CONT’D) Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Organic Revenues (Non-GAAP) Brokerage Segment 2024 2025 2024 2025 2024 2025 2024 2025 Total commissions, fees, supplemental revenues and contingent revenues, as reported 2,780.2$ 3,076.2$ 2,287.9$ 2,562.1$ 2,271.4$ 2,765.8$ 7,339.5$ 8,404.1$ Less commissions, fees, supplemental revenues and contingent revenues from acquisitions (26.0) (92.0) - (132.9) - (441.4) (26.0) (666.3) Less divested operations (11.5) - (9.6) - (61.9) - (83.0) - Levelized foreign currency translation (17.4) - 29.8 - 14.6 - 27.0 - Total organic commissions, fees, supplemental revenues and contingent revenues 2,725.3$ 2,984.2$ 2,308.1$ 2,429.2$ 2,224.1$ 2,324.4$ 7,257.5$ 7,737.8$ Total organic change 9.5% 5.3% 4.5% 6.6% Ris k Management Segment 2024 2025 2024 2025 2024 2025 2024 2025 Fees , as reported 344.5$ 364.6$ 349.5$ 383.3$ 359.8$ 392.5$ 1,053.8$ 1,140.4$ Less fees from acquisitions - (10.3) - (15.2) - (13.3) - (38.8) Less divested operations (2.0) - (2.3) - (2.8) - (7.1) - Levelized foreign currency translation (1.5) - (0.6) - (1.5) - (3.6) - Organic fees 341.0$ 354.3$ 346.6$ 368.1$ 355.5$ 379.2$ 1,043.1$ 1,101.6$ Organic change in fees 3.9% 6.2% 6.7% 5.6% Brokerage and Ris k Management Segments 2024 2025 2024 2025 2024 2025 2024 2025 Brokerage total organic commissions, fees, supplemental revenues and contingent revenues 2,725.3$ 2,984.2$ 2,308.1$ 2,429.2$ 2,224.1$ 2,324.4$ 7,257.5$ 7,737.8$ Risk Management Segment organic fees 341.0 354.3 346.6 368.1 355.5 379.2 1,043.1 1,101.6 Total organic commissions, fees, supplemental 3,066.3$ 3,338.5$ 2,654.7$ 2,797.3$ 2,579.6$ 2,703.6$ 8,300.6$ 8,839.4$ Total organic change 8.9% 5.4% 4.8% 6.5% 2Q 2025 YTD 3Q 20251Q 2025 3Q 2025
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45 ©2025 ARTHUR J. GALLAGHER & CO. NON-GAAP RECONCILIATIONS – REVENUES, AS ADJUSTED Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Revenues, as adjusted (Non-GAAP) Brokerage Segment 1Q 2024 1Q 2025 2Q 2024 2Q 2025 3Q 2024 3Q 2025 YTD 3Q 2024 YTD 3Q 2025 Brokerage revenue, as reported 2,864.9$ 3,314.6$ 2,376.3$ 2,785.6$ 2,396.4$ 2,922.9$ 7,637.6$ 9,023.1$ Net (gains) on divestitures (0.5) (6.4) (2.0) (6.1) (22.5) 8.1 (25.0) (4.4) Acquisition related adjustments (26.0) - - - - - (26.0) - Levelized foreign currency translation (17.8) - 30.4 - 14.1 - 26.7 - Brokerage revenue, as adjus ted 2,820.6$ 3,308.2$ 2,404.7$ 2,779.5$ 2,388.0$ 2,931.0$ 7,613.3$ 9,018.7$ Ris k Management Segment 1Q 2024 1Q 2025 2Q 2024 2Q 2025 3Q 2024 3Q 2025 YTD 3Q 2024 YTD 3Q 2025 Ris k Management revenue, as reported $391.4 $412.4 $398.0 $434.8 $410.0 $442.3 $1,199.4 $1,289.5 Reimbursements 38.6 39.0 39.4 42.9 40.3 40.2 118.3 122.1 Ris k Management revenue (before reimburs ements ), as reported 352.8 373.4 358.6 391.9 369.7 402.1 1,081.1 1,167.4 Net gains on divestitures 0.2 (0.2) (0.1) (0.1) (0.1) (0.2) - (0.5) Levelized foreign currency translation (1.5) - (0.6) - (1.5) - (3.6) - Ris k Management revenue (before reimburs ements ), as adjus ted 351.5$ 373.2$ 357.9$ 391.8$ 368.1$ 401.9$ 1,077.5$ 1,166.9$ Brokerage and Ris k Management Segments 1Q 2024 1Q 2025 2Q 2024 2Q 2025 3Q 2024 3Q 2025 YTD 3Q 2024 YTD 3Q 2025 Brokerage & Ris k Management revenue, as reported 3,256.3$ 3,727.0$ 2,774.3$ 3,220.4$ 2,806.4$ 3,365.2$ 8,837.0$ 10,312.6$ Reimbursements 38.6 39.0 39.4 42.9 40.3 40.2 118.3 122.1 Brokerage & Ris k Management revenue (before reimburs ements ), as reported 3,217.7 3,688.0 2,734.9 3,177.5 2,766.1 3,325.0 8,718.7 10,190.5 Net gains on divestitures (0.3) (6.6) (2.1) (6.2) (22.6) 7.9 (25.0) (4.9) Acquisition related adjustments (26.0) - - - - - (26.0) - Levelized foreign currency translation (19.3) - 29.8 - 12.6 - 23.1 - Brokerage & Ris k Management revenue, as adjus ted $3,172.1 $3,681.4 $2,762.6 $3,171.3 $2,756.1 $3,332.9 $8,690.8 $10,185.6
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46 ©2025 ARTHUR J. GALLAGHER & CO. NON-GAAP RECONCILIATIONS – EBITDAC & EBITDAC MARGIN, AS ADJUSTED Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Reported GAAP Net Earnings to EBITDAC, as Adjusted (Non-GAAP) Brokerage Segment YTD 3Q 2024 YTD 3Q 2025 Brokerage and Ris k Management Segments YTD 3Q 2024 YTD 3Q 2025 Brokerage net earnings , as reported 1,368.4$ 1,734.9$ Brokerage and Ris k Management net earnings , as reported 1,500.1$ 1,868.1$ Provision for income taxes 465.9 600.3 Provision for income taxes 513.5 648.4 Depreciation 99.1 112.6 Depreciation 126.4 142.5 Amortization 487.8 596.4 Amortization 497.8 612.6 Change in estimated acquisition earnout payables (12.9) 37.6 Change in estimated acquisition earnout payables (12.6) 39.1 Brokerage EBITDAC, as reported 2,408.3 3,081.8 Brokerage and Ris k Management EBITDAC, as reported 2,625.2 3,310.7 Net gains on divestitures (25.0) (4.4) Net gains on divestitures (25.0) (4.9) Acquisition integration 151.0 150.7 Acquisition integration 152.8 156.2 Workforce and lease termination related charges 88.0 77.0 Workforce and lease termination related charges 92.6 87.6 Acquisition related adjustments 92.5 126.0 Acquisition related adjustments 92.7 127.7 Levelized foreign currency translation 5.1 - Levelized foreign currency translation 4.1 - Brokerage EBITDAC, as adjus ted 2,719.9$ 3,431.1$ Brokerage & Ris k Management EBITDAC, as adjus ted $2,942.4 $3,677.3 Brokerage EBITDAC Margin, as adjusted 35.7% 38.0% Brokerage & Ris k Management EBITDAC Margin, as adjus ted 33.9% 36.1% Ris k Management Segment YTD 3Q 2024 YTD 3Q 2025 Ris k Management net earnings , as reported 131.7$ 133.2$ Provision for income taxes 47.6 48.1 Depreciation 27.3 29.9 Amortization 10.0 16.2 Change in estimated acquisition earnout payables 0.3 1.5 Ris k Management EBITDAC, as reported 216.9 228.9 Net gains on divestitures - (0.5) Acquisition integration 1.8 5.5 Workforce and lease termination related charges 4.6 10.6 Acquisition related adjustments 0.2 1.7 Levelized foreign currency translation (1.0) - Ris k Management EBITDAC, as adjus ted 222.5$ 246.2$ Risk Management EBITDAC Margin, as adjusted 20.6% 21.1%
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47 ©2025 ARTHUR J. GALLAGHER & CO. Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Revenues, as adjusted (Non-GAAP) Brokerage Segment 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Brokerage revenue, as reported 1,556.5$ 1,827.6$ 2,126.3$ 2,896.3$ 3,324.0$ 3,501.6$ 3,815.1$ 4,246.9$ 4,901.5$ 5,167.1$ Net gains (losses) on divestitures (5.5) (3.9) (5.2) (7.3) (6.7) (6.6) (3.4) (10.2) (75.3) 5.8 Acquisition related adjustments - - - - - - - - - - Brokerage revenue, as adjus ted 1,551.0$ 1,823.7$ 2,121.1$ 2,889.0$ 3,317.3$ 3,495.0$ 3,811.7$ 4,236.7$ 4,826.2$ 5,172.9$ Ris k Management Segment 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ris k Management revenue, as reported $548.8 $571.7 $629.0 $682.3 $727.1 $830.1 $873.4 $939.9 $977.1 $973.4 Reimbursements N/A N/A N/A N/A N/A 132.1 136.0 141.6 138.6 151.7 Ris k Management revenue (before reimburs ements ), as reported 548.8 571.7 629.0 682.3 727.1 698.0 737.4 798.3 838.5 821.7 Net gains on divestitures - - - - - - - - - - Other non-recurring items * (21.8) (8.6) (1.5) - 1.0 - - - - - Ris k Management revenue (before reimburs ements ), as adjus ted 527.0$ 563.1$ 627.5$ 682.3$ 728.1$ 698.0$ 737.4$ 798.3$ 838.5$ 821.7$ Brokerage and Ris k Management Segments 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Brokerage & Ris k Management revenue, as reported 2,105.3$ 2,399.3$ 2,755.3$ 3,578.6$ 4,051.1$ 4,331.7$ 4,688.5$ 5,186.8$ 5,878.6$ 6,140.5$ Reimbursements N/A N/A N/A N/A N/A 132.1 136.0 141.6 138.6 151.7 Brokerage & Ris k Management revenue (before reimburs ements ), as reported 2,105.3$ 2,399.3$ 2,755.3$ 3,578.6$ 4,051.1$ 4,199.6$ 4,552.5$ 5,045.2$ 5,740.0$ 5,988.8$ Net gains (losses) on divestitures (5.5) (3.9) (5.2) (7.3) (6.7) (6.6) (3.4) (10.2) (75.3) 5.8 Acquisition related adjustments - - - - - - - - - - Other non-recurring items * (21.8) (8.6) (1.5) - 1.0 - - - - - Brokerage & Ris k Management revenue, as adjus ted 2,078.0$ 2,386.8$ 2,748.6$ 3,571.3$ 4,045.4$ 4,193.0$ 4,549.1$ 5,035.0$ 5,664.7$ 5,994.6$ NON-GAAP RECONCILIATIONS – REVENUE, AS ADJUSTED * Includes revenue and expenses related to client run-off/bankruptcy, New Zealand earthquake claims administration, South Australia, and claim portfolio transfer ramp- up. Financials before 2016 have not been adjusted for ASC 606 revenue accounting standards, and thus, may not be comparable to those from 2016 onwards. Non-GAAP adjustments for levelized foreign currency translation have been excluded from revenue and EBITDAC reconciliations above.
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48 ©2025 ARTHUR J. GALLAGHER & CO. Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Revenues, as adjusted (Non-GAAP) Brokerage Segment 2021 2022 2023 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Brokerage revenue, as reported 5,967.5$ 7,303.8$ 8,637.2$ 9,933.8$ 2,296.2$ 3,314.6$ 2,785.6$ 2,922.9$ 11,319.3$ Net gains (losses) on divestitures (18.8) (12.1) (9.6) (24.2) 0.8 (6.4) (6.1) 8.1 (3.6) Acquisition related adjustments - - - (26.0) - - - - - Brokerage revenue, as adjus ted 5,948.7$ 7,291.7$ 8,627.6$ 9,883.6$ 2,297.0$ 3,308.2$ 2,779.5$ 2,931.0$ 11,315.7$ Ris k Management Segment 2021 2022 2023 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Ris k Management revenue, as reported $1,100.6 $1,223.1 $1,433.0 $1,604.8 $405.4 $412.4 $434.8 $442.3 1,694.9$ Reimbursements 133.0 130.5 145.4 154.3 36.0 39.0 42.9 40.2 158.1 Ris k Management revenue (before reimburs ements ), as reported 967.6 1,092.6 1,287.6 1,450.5 369.4 373.4 391.9 402.1 1,536.8 Net gains on divestitures (0.1) (0.9) (0.4) (0.1) (0.1) (0.2) (0.1) (0.2) (0.6) Other non-recurring items * - - - - - - - - - Ris k Management revenue (before reimburs ements ), as adjus ted 967.5$ 1,091.7$ 1,287.2$ 1,450.4$ 369.3$ 373.2$ 391.8$ 401.9$ 1,536.2$ Brokerage and Ris k Management Segments 2021 2022 2023 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Brokerage & Ris k Management revenue, as reported 7,068.1$ 8,526.9$ 10,070.2$ 11,538.6$ 2,701.6$ 3,727.0$ 3,220.4$ 3,365.2$ 13,014.2$ Reimbursements 133.0 130.5 145.4 154.3 36.0 39.0 42.9 40.2 158.1 Brokerage & Ris k Management revenue (before reimburs ements ), as reported 6,935.1$ 8,396.4$ 9,924.8$ 11,384.3$ 2,665.6$ 3,688.0$ 3,177.5$ 3,325.0$ 12,856.1$ Net gains (losses) on divestitures (18.9) (13.0) (10.0) (24.3) 0.7 (6.6) (6.2) 7.9 (4.2) Acquisition related adjustments - - - (26.0) - - - - - Other non-recurring items * - - - - - - - - - Brokerage & Ris k Management revenue, as adjus ted 6,916.2$ 8,383.4$ 9,914.8$ 11,334.0$ 2,666.3$ 3,681.4$ 3,171.3$ 3,332.9$ 12,851.9$ NON-GAAP RECONCILIATIONS – REVENUE, AS ADJUSTED (CONT’D) * Includes revenue and expenses related to client run-off/bankruptcy, New Zealand earthquake claims administration, South Australia, and claim portfolio transfer ramp- up. Financials before 2016 have not been adjusted for ASC 606 revenue accounting standards, and thus, may not be comparable to those from 2016 onwards. Non-GAAP adjustments for levelized foreign currency translation have been excluded from revenue and EBITDAC reconciliations above.
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49 ©2025 ARTHUR J. GALLAGHER & CO. NON-GAAP RECONCILIATIONS – EBITDAC & EBITDAC MARGIN, AS ADJUSTED * Includes revenue and expenses related to client run-off/bankruptcy, New Zealand earthquake claims administration, South Australia, and claim portfolio transfer ramp- up. Financials before 2016 have not been adjusted for ASC 606 revenue accounting standards, and thus, may not be comparable to those from 2016 onwards. Non-GAAP adjustments for levelized foreign currency translation have been excluded from revenue and EBITDAC reconciliations above. Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Reported GAAP Net Earnings to EBITDAC, as Adjusted (Non-GAAP) Brokerage Segment 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Brokerage net earnings , as reported 140.2$ 155.8$ 205.0$ 263.8$ 268.1$ 342.6$ 414.7$ 573.2$ 717.3$ 866.0$ Provision for income taxes 88.6 103.0 122.2 151.0 145.3 186.6 221.2 191.0 229.2 276.3 Depreciation 21.2 24.7 30.8 44.4 54.4 57.2 61.8 60.9 66.6 73.5 Amortization 77.0 96.2 122.3 186.3 237.3 244.7 261.8 286.9 329.1 411.3 Change in estimated acquisition earnout payables (6.2) 3.6 3.4 17.6 41.1 32.1 29.3 14.3 16.9 (29.7) Brokerage EBITDAC, as reported 320.8 383.3 483.7 663.1 746.2 863.2 988.8 1,126.3 1,359.1 1,597.4 Net gains (losses) on divestitures (5.5) (3.9) (5.2) (7.3) (6.7) (6.6) (3.4) (10.2) (62.3) 5.8 Acquisition integration 16.0 19.3 23.8 67.1 100.9 45.7 14.8 3.4 20.4 25.1 Workforce and lease termination related charges 2.6 14.4 7.9 7.8 23.0 20.7 30.1 38.7 44.8 43.9 Acquisition related adjustments 7.0 - - 1.1 3.4 3.7 9.1 14.2 16.8 19.2 Brokerage EBITDAC, as adjus ted 340.9$ 413.1$ 510.2$ 731.8$ 866.8$ 926.7$ 1,039.4$ 1,172.4$ 1,378.8$ 1,691.4$ Brokerage EBITDAC Margin, as adjusted 22.0% 22.7% 24.1% 25.3% 26.1% 26.5% 27.3% 27.7% 28.6% 32.7% Ris k Management Segment 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ris k Management net earnings , as reported 33.3$ 42.5$ 47.7$ 42.1$ 57.2$ 56.7$ 55.7$ 70.4$ 66.2$ 66.9$ Provision for income taxes 19.1 25.9 28.4 25.3 35.1 34.5 34.4 25.3 22.2 22.5 Depreciation 14.2 16.0 19.7 21.2 24.3 27.2 31.1 38.7 46.2 49.4 Amortization 2.3 2.8 2.9 3.2 3.0 2.5 2.9 4.3 4.9 6.0 Change in estimated acquisition earnout payables - (0.2) (1.7) (0.1) (0.5) - 1.6 (4.7) (1.6) (3.2) Ris k Management EBITDAC, as reported 68.9 87.0 97.0 91.7 119.1 120.9 125.7 134.0 137.9 141.6 Net gains on divestitures - - - - - - - - - - Acquisition integration 13.0 - - - - - - - - - Workforce and lease termination related charges 5.6 2.7 - 1.0 2.9 2.2 0.9 4.7 7.9 7.9 Acquisition related adjustments - - - - - - - - - - Other non-recurring items * (6.1) 0.6 1.8 19.3 4.0 - - - - - Ris k Management EBITDAC, as adjus ted 81.4$ 90.3$ 98.8$ 112.0$ 126.0$ 123.1$ 126.6$ 138.7$ 145.8$ 149.5$ Risk Management EBITDAC Margin, as adjusted 15.4% 16.0% 15.7% 16.4% 17.3% 17.6% 17.2% 17.4% 17.4% 18.2% Brokerage and Ris k Management Segments 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Brokerage and Ris k Management net earnings , as reported 173.5$ 198.3$ 252.7$ 305.9$ 325.3$ 399.3$ 470.4$ 643.6$ 783.5$ 932.9$ Provision for income taxes 107.7 128.9 150.6 176.3 180.4 221.1 255.6 216.3 251.4 298.8 Depreciation 35.4 40.7 50.5 65.6 78.7 84.4 92.9 99.6 112.8 122.9 Amortization 79.3 99.0 125.2 189.5 240.3 247.2 264.7 291.2 334.0 417.3 Change in estimated acquisition earnout payables (6.2) 3.4 1.7 17.5 40.6 32.1 30.9 9.6 15.3 (32.9) Brokerage and Ris k Management EBITDAC, as reported 389.7 470.3 580.7 754.8 865.3 984.1 1,114.5 1,260.3 1,497.0 1,739.0 Net gains (losses) on divestitures (5.5) (3.9) (5.2) (7.3) (6.7) (6.6) (3.4) (10.2) (62.3) 5.8 Acquisition integration 29.0 19.3 23.8 67.1 100.9 45.7 14.8 3.4 20.4 25.1 Workforce and lease termination related charges 8.2 17.1 7.9 8.8 25.9 22.9 31.0 43.4 52.7 51.8 Acquisition related adjustments 7.0 - - 1.1 3.4 3.7 9.1 14.2 16.8 19.2 Other non-recurring items * (6.1) 0.6 1.8 19.3 4.0 - - - - - Brokerage & Ris k Management EBITDAC, as adjus ted 422.3$ 503.4$ 609.0$ 843.8$ 992.8$ 1,049.8$ 1,166.0$ 1,311.1$ 1,524.6$ 1,840.9$ Brokerage & Ris k Management EBITDAC Margin, as adjus ted 20.3% 21.1% 22.2% 23.6% 24.5% 25.0% 25.6% 26.0% 26.9% 30.7%
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50 ©2025 ARTHUR J. GALLAGHER & CO. NON-GAAP RECONCILIATIONS – EBITDAC & EBITDAC MARGIN, AS ADJUSTED (CONT’D) * Includes revenue and expenses related to client run-off/bankruptcy, New Zealand earthquake claims administration, South Australia, and claim portfolio transfer ramp- up. Financials before 2016 have not been adjusted for ASC 606 revenue accounting standards, and thus, may not be comparable to those from 2016 onwards. Non-GAAP adjustments for levelized foreign currency translation have been excluded from revenue and EBITDAC reconciliations above. Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Reported GAAP Net Earnings to EBITDAC, as Adjusted (Non-GAAP) Brokerage Segment 2021 2022 2023 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Brokerage net earnings , as reported 1,016.6$ 1,201.8$ 1,169.4$ 1,685.7$ 317.3$ 816.1$ 508.4$ 410.4$ 2,052.2$ Provision for income taxes 328.9 394.7 401.6 573.6 107.7 283.0 176.0 141.3 708.0 Depreciation 87.8 103.6 124.4 133.1 34.0 32.9 38.1 41.6 146.6 Amortization 407.6 448.7 523.6 651.0 163.2 203.6 174.3 218.5 759.6 Change in estimated acquisition earnout payables 116.3 90.4 376.8 25.6 38.5 15.4 (6.3) 28.5 76.1 Brokerage EBITDAC, as reported 1,957.2 2,239.2 2,595.8 3,069.0 660.7 1,351.0 890.5 840.3 3,742.5 Net gains (losses) on divestitures (18.8) (12.1) (9.6) (24.2) 0.8 (6.4) (6.1) 8.1 (3.6) Acquisition integration 31.7 167.9 243.7 190.2 39.2 44.0 40.7 66.0 189.9 Workforce and lease termination related charges 20.6 48.9 63.4 118.9 30.9 17.9 37.8 21.3 107.9 Acquisition related adjustments 27.4 46.8 69.3 121.2 28.7 30.1 50.0 45.9 154.7 Brokerage EBITDAC, as adjus ted 2,018.1$ 2,490.7$ 2,962.6$ 3,475.1$ 760.3$ 1,436.6$ 1,012.9$ 981.6$ 4,191.4$ Brokerage EBITDAC Margin, as adjusted 33.9% 34.2% 34.3% 35.2% 33.1% 43.4% 36.4% 33.5% 37.0% Ris k Management Segment 2021 2022 2023 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Ris k Management net earnings , as reported 89.5$ 115.8$ 154.0$ 174.5$ 42.8$ 41.1$ 42.6$ 49.5$ 176.0$ Provision for income taxes 30.6 41.4 55.3 63.1 15.5 14.8 15.4 17.9 63.6 Depreciation 46.2 37.8 35.9 37.6 10.3 9.5 9.9 10.5 40.2 Amortization 7.5 6.2 7.7 13.8 3.8 5.7 6.8 3.7 20.0 Change in estimated acquisition earnout payables 3.3 (7.4) 0.5 0.4 0.1 0.4 0.7 0.4 1.6 Ris k Management EBITDAC, as reported 177.1 193.8 253.4 289.4 72.5 71.5 75.4 82.0 301.4 Net gains on divestitures (0.1) (0.9) (0.4) (0.1) (0.1) (0.2) (0.1) (0.2) (0.6) Acquisition integration - 1.8 1.0 2.9 1.1 1.6 1.5 2.4 6.6 Workforce and lease termination related charges 7.1 6.4 3.4 7.2 2.6 3.2 4.0 9.8 Acquisition related adjustments 0.4 0.4 0.5 0.3 0.1 0.4 1.3 3.4 5.2 Other non-recurring items * - - - - - - - - - Ris k Management EBITDAC, as adjus ted 184.5$ 201.5$ 257.9$ 299.7$ 76.2$ 76.5$ 82.1$ 87.6$ 322.4$ Risk Management EBITDAC Margin, as adjusted 19.1% 18.5% 20.0% 20.7% 20.6% 20.5% 21.0% 21.8% 21.0% Brokerage and Ris k Management Segments 2021 2022 2023 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Brokerage and Ris k Management net earnings , as reported 1,106.1$ 1,317.6$ 1,323.4$ 1,860.2$ 360.1$ 857.2$ 551.0$ 459.9$ 2,228.2$ Provision for income taxes 359.5 436.1 456.9 636.7 123.2 297.8 191.4 159.2 771.6 Depreciation 134.0 141.4 160.3 170.7 44.3 42.4 48.0 52.1 186.8 Amortization 415.1 454.9 531.3 664.8 167.0 209.3 181.1 222.2 779.6 Change in estimated acquisition earnout payables 119.6 83.0 377.3 26.0 38.6 15.8 (5.6) 28.9 77.7 Brokerage and Ris k Management EBITDAC, as reported 2,134.3 2,433.0 2,849.2 3,358.4 733.2 1,422.5 965.9 922.3 4,043.9 Net gains (losses) on divestitures (18.9) (13.0) (10.0) (24.3) 0.7 (6.6) (6.2) 7.9 (4.2) Acquisition integration 31.7 169.7 244.7 193.1 40.3 45.6 42.2 68.4 196.5 Workforce and lease termination related charges 27.7 55.3 66.8 126.1 33.5 21.1 41.8 21.3 117.7 Acquisition related adjustments 27.8 47.2 69.8 121.5 28.8 30.5 51.3 49.3 159.9 Other non-recurring items * - - - - - - - - - Brokerage & Ris k Management EBITDAC, as adjus ted 2,202.6$ 2,692.2$ 3,220.5$ 3,774.8$ 836.5$ 1,513.1$ 1,095.0$ 1,069.2$ 4,513.8$ Brokerage & Ris k Management EBITDAC Margin, as adjus ted 31.9% 32.1% 32.5% 33.3% 31.4% 41.1% 34.5% 32.1% 35.1%
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51 ©2025 ARTHUR J. GALLAGHER & CO. * Represents supplemental revenue related to calendar year 2008 recognized in subsequent periods. Financials before 2016 have not been adjusted for ASC 606 revenue accounting standards, and thus, may not be comparable to those from 2016 onwards. Non- GAAP adjustments for levelized foreign currency translation have been excluded from revenue and EBITDAC reconciliations above. NON-GAAP RECONCILIATIONS – OPERATING EXPENSE RATIO Brokerage and Risk Management Segments Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Reported GAAP Operating Expense to Operating Expense, as Adjusted (Non-GAAP) Brokerage Segment 2008 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Brokerage revenue, as reported 1,187.8$ 2,296.2$ 3,314.6$ 2,785.6$ 2,922.9$ 11,319.3$ Net gains on divestitures (23.8) 0.8 (6.4) (6.1) 8.1 (3.6) Acquisition related adjustments - - - - - - Supplemental revenue timing* 6.1 - - - - - Brokerage revenue, as adjus ted $1,170.1 $2,297.0 $3,308.2 $2,779.5 $2,931.0 11,315.7$ Brokerage operating expens e, as reported 247.4$ 344.1$ 346.4$ 368.9$ 433.6$ 1,493.0$ Integration costs - (14.7) (16.4) (20.7) (27.8) (79.6) Workforce and lease termination related charges (3.6) (4.3) (1.4) (1.4) (5.9) (13.0) Brokerage operating expens e, as adjus ted 243.8$ 325.1$ 328.6$ 346.8$ 399.9$ 1,400.4$ Brokerage operating expens e ratio, as adjus ted 20.8% 14.2% 9.9% 12.5% 13.6% 12.4% Ris k Management Segment 2008 4Q 2024 1Q 2025 2Q 2025 3Q 2025 TTM 3Q 2025 Ris k Management revenue, as reported $464.9 $405.4 $412.4 $434.8 $442.3 $1,694.9 Reimbursements N/A 36.0 39.0 42.9 40.2 158.1 Ris k Management revenue (before reimburs ements ), as reported 464.9 369.4 373.4 391.9 402.1 1,536.8 Net gains on divestitures - (0.1) (0.2) (0.1) (0.2) (0.6) Ris k Management revenue (before reimburs ements ), as adjus ted 464.9$ 369.3$ 373.2$ 391.8$ 401.9$ 1,536.2$ Ris k Management operating expens e, as reported 126.3$ 72.2$ 70.8$ 72.9$ 76.3$ 292.2$ Integration costs - (0.5) (1.1) (0.9) (1.5) (4.0) Workforce and lease termination related charges (0.6) (1.0) (0.4) (0.7) (0.4) (2.5) Ris k Management operating expens e, as adjus ted 125.7$ 70.7$ 69.3$ 71.3$ 74.4$ 285.7$ Ris k Management operating expens e ratio, as adjus ted 27.0% 19.1% 18.6% 18.2% 18.5% 18.6%
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52 ©2025 ARTHUR J. GALLAGHER & CO. NON-GAAP RECONCILIATIONS – ORGANIC REVENUE EX CONTINGENTS * Includes MGA/MGU performance and supplemental commission revenue timing. Note that CYs 2005 and 2006 commission and fees have been recast to remove business moved to discontinued operations in 4Q 2017. CYs 2004 and prior were recast to remove brokerage expense from revenues. ** Includes acquisition related adjustments that represent changes in balance sheet estimates arising primarily from conformi ng accounting principles, purchase-related true- ups, and other balance sheet adjustments made after the closing date. Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): Organic Revenues (Non-GAAP) CY CY CY CY CY CY CY CY CY CY CY CY Brokerage Segment - Current Year (CY) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total commissions, fees, supplemental revenues and contingent revenues , as reported 565.2$ 725.0$ 833.0$ 906.8$ 982.9$ 979.3$ 1,084.1$ 1,150.1$ 1,260.0$ 1,329.8$ 1,545.6$ 1,816.5$ Less contingent revenues (14.9) (22.9) (29.3) (33.8) (28.8) (2.5) (13.3) (25.3) (27.6) (36.8) (38.1) (42.9) Less acquired base commission, fees and supplemental revenues - (69.5) (34.8) (55.1) (65.3) (35.2) (77.2) (101.1) (146.7) (63.6) (188.4) (210.8) Other timing items * - - - - - - 1.8 6.1 1.4 (14.7) - - Current year organic revenues excluding contingent revenues $ 550.3 $ 632.6 $ 768.9 $ 817.9 $ 888.8 $ 941.6 $ 995.4 $ 1,029.8 $ 1,087.1 $ 1,214.7 $ 1,319.1 $ 1,562.8 PY PY PY PY PY PY PY PY PY PY PY PY Brokerage Segment - Prior Year (PY) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total commissions, fees, supplemental revenues and contingent revenues , as reported $ 499.1 $ 565.2 $ 725.0 $ 833.0 $ 906.8 $ 929.1 $ 979.3 $ 1,084.1 $ 1,150.1 $ 1,260.0 $ 1,329.8 $ 1,545.6 Less contingent revenues (17.9) (14.9) (22.9) (29.3) (33.8) (28.8) (2.5) (13.3) (25.3) (27.6) (36.8) (38.1) Less divestitures - (3.0) - (0.8) (1.8) (1.6) - (35.8) (9.0) - (4.6) (8.7) Other timing items * - - - - - - - 1.8 6.1 1.4 (14.7) - Levelized foreign currency translation - - - - - - - (4.0) (7.9) 2.4 5.5 (1.5) Prior year organic revenues excluding contingent revenues $ 481.2 $ 547.3 $ 702.1 $ 802.9 $ 871.2 $ 898.7 $ 976.8 $ 1,032.8 $ 1,114.0 $ 1,236.2 $ 1,279.2 $ 1,497.3 Organic Change excluding contingent revenues 14.4% 15.6% 9.5% 1.9% 2.0% 4.8% 1.9% -0.3% -2.4% -1.7% 3.1% 4.4% CY CY CY CY CY CY CY CY CY CY CY CY CY Brokerage Segment - Current Year (CY) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Total commissions, fees, supplemental revenues and contingent revenues , as reported 2,133.0$ 2,866.7$ 3,263.7$ 3,469.0$ 3,771.4$ 4,167.1$ 4,740.9$ 5,097.7$ 5,865.9$ $ 7,156.3 $ 8,299.5 $ 9,513.4 $ 8,404.1 Less contingent revenues (52.1) (84.7) (93.7) (107.2) (111.8) (98.0) (135.6) (147.0) (188.0) (207.3) (235.3) (267.6) (241.0) Less acquired base commission, fees and supplemental revenues (222.2) (620.4) (399.7) (174.7) (169.0) (201.9) (396.3) (238.4) (259.0) (885.4) (536.7) (627.6) (647.2) Current year organic revenues excluding contingent revenues $ 1,858.7 $ 2,161.6 $ 2,770.3 $ 3,187.1 $ 3,490.6 $ 3,867.2 $ 4,209.0 $ 4,712.3 $ 5,418.9 $ 6,063.6 $ 7,527.5 $ 8,618.2 $ 7,515.9 PY PY PY PY PY PY PY PY PY PY PY PY PY Brokerage Segment - Prior Year (PY) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 YTD 2024 Total commissions, fees, supplemental revenues and contingent revenues , as reported $ 1,816.5 $ 2,133.0 $ 2,848.7 $ 3,263.7 $ 3,469.0 $ 3,753.6 $ 4,167.1 $ 4,740.9 $ 5,097.7 $ 5,865.9 $ 7,156.3 $ 8,299.5 $ 7,339.5 Less contingent revenues (42.9) (52.1) (84.7) (93.7) (107.2) (99.5) (98.0) (135.6) (147.0) (188.0) (207.3) (235.3) (215.1) Less divestitures ** (6.2) (8.5) (9.1) (3.6) (4.3) (18.2) (31.0) (29.6) (13.7) (2.2) (10.5) (57.9) (109.0) Levelized foreign currency translation (6.7) 9.7 (85.6) (85.0) (14.4) 14.1 (47.5) (5.0) 102.8 (150.2) (22.2) 6.3 26.9 Prior year organic revenues excluding contingent revenues $ 1,760.7 $ 2,082.1 $ 2,669.3 $ 3,081.4 $ 3,343.1 $ 3,650.0 $ 3,990.6 $ 4,570.7 $ 5,039.8 $ 5,525.5 $ 6,916.3 $ 8,012.6 $ 7,042.3 Organic Change excluding contingent revenues 5.6% 3.8% 3.8% 3.4% 4.4% 6.0% 5.5% 3.1% 7.5% 9.7% 8.8% 7.6% 6.7%
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©2025 ARTHUR J. GALLAGHER & CO. Ray Iardella Corporate Vice President, Investor Relations Ray_Iardella@ajg.com Phone: 630.285.3661 Additional Information: