Arthur J. Gallagher Targets 6% Q3 Organic Growth as Risk Management Accelerates

Arthur J. Gallagher Targets 6% Q3 Organic Growth as Risk Management Accelerates Written by MarketBeat September 25, 2026 Add As Preferred Source Share Share Share This Article Link copied to clipboard. Close Image from MarketBeat Media, LLC. Key Points Gallagher expects approximately 6% companywide organic growth in Q3 , supported by about 5% growth in brokerage and double-digit growth in risk management despite easing property-insurance pricing. Property renewal premiums declined 6% overall, while casualty pricing remained firm, with casualty premiums up 5%; management said retention, new business, exposure growth and diversified operations are offsetting softer property rates. Risk Management Services raised its Q3 organic-growth outlook to about 10% , while Gallagher continues expanding through acquisitions and expects AssuredPartners synergies to reach approximately $325 million by early 2028. Five stocks to consider instead of Arthur J. Gallagher & Co. . Arthur J. Gallagher & Co. NYSE: AJG said its diversified brokerage, benefits, reinsurance and claims-management operations continue to support growth despite easing property insurance pricing, with the company projecting approximately 6% organic growth in the third quarter. Chairman and Chief Executive Officer J. Patrick Gallagher Jr. said pricing remains only one component of the company’s growth model. He pointed to strong retention, new-business activity, client exposure growth and the breadth of Gallagher’s operations as additional drivers. Get AJG alerts: Sign Up “Our growth is not tied to one product, one geography, or one market condition,” Gallagher said. He said clients are using savings from lower property premiums to increase coverage limits, buy back coverage and improve program structures. Property Pricing Eases While Casualty Remains Firm Gallagher described global property and casualty insurance markets as segmented. Property-market conditions are easing as capacity returns, while casualty pricing remains firmer because of loss-cost pressures and underwriting-margin requirements. Across the company’s property and casualty brokerage businesses during July and August, property renewal premiums declined 6%, while casualty premiums rose 5%. General liability increased 2%, commercial auto rose 4% and umbrella coverage increased 7%. Professional lines, including directors and officers liability and cyber coverage, increased 2%. Mike Pesch, CEO of Global Brokerage for the Americas, said U.S. retail property renewal premiums declined about 7% in July and August, compared with a 12% decline in the second quarter. He attributed the improvement primarily to renewal timing and business mix rather than a fundamental shift in the property-rate environment. Excluding property, U.S. retail renewal premium changes were up approximately 4%, including a 7% increase in casualty. Pesch said carriers remain rational, with better-performing accounts receiving premium relief and accounts with weaker loss experience facing higher increases. During the question-and-answer session, Chief Financial Officer Doug Howell said property represents about 30% of Gallagher’s commission base. About 40% of property revenue comes from large accounts, 40% from middle-market accounts and 20% from small accounts, excluding AssuredPartners. He noted that many large property schedules are fee-based, limiting the direct relationship between changes in premium rates and Gallagher’s revenue. Business Leaders Detail Growth Opportunities The company said its Americas retail and specialty operations produced approximately $3.5 billion of revenue in 2025. Including AssuredPartners and Woodruff Sawyer, pro forma revenue would have exceeded $5 billion, according to Pesch. The Americas specialty operation, including Risk Placement Services, affinity products, risk pools, alternative risk and captive management, has more than $2 billion of annualized run-rate revenue with AssuredPartners. Patrick Gallagher, the company’s chief operating officer, said international retail operations in the U.K., EMEA, Australia and New Zealand generate about $1.6 billion of annual revenue. London specialty generates more than $700 million of annual revenue and places more than $6 billion in premiums annually. International retail pricing remained competitive, he said. U.K. and Australian renewal premiums were each up about 1%, while New Zealand renewal premiums were down 4%, led by a 6% decline in property. He said London specialty faces ample capacity and intense competition in several lines, though geopolitical developments have increased marine war-risk pricing and, to a lesser extent, aviation pricing in some areas. Tom Gallagher, president of the company, said Gallagher Re has grown to become the world’s third-largest reinsurance broker, with more than $1 billion in revenue. The business delivered 14% organic growth in 2025, and momentum has continued in 2026, he said. Gallagher Re is seeing price modera