Q1 2026 Arthur J Gallagher & Co Earnings Call

April 30, 2026

Operator: Good afternoon, and welcome to Arthur J. Gallagher & Co.'s Q1 2026 Earnings Conference Call. Participants have been placed on a listen-only mode. Your lines will be open for questions following the presentation. Today's call is being recorded. If you have any objections, you may disconnect at this time. Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meanings of the securities laws. The company does not assume any obligation to update information or forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the Information Concerning Forward-Looking Statements and Risk Factors sections contained in the company's most recent 10-K, 10-Q, and 8-K filings for more details on such risks and uncertainties.

Speaker #1: Hello, good afternoon, and welcome to Arthur J. Gallagher & Co.'s Q1, 2026 earnings conference call. Participants have been placed on a listen-only mode. Your lines will be open for questions following the presentation.

Speaker #1: Today's call is being recorded. If you have any objections, you may disconnect at this time. Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meanings of the securities laws.

Speaker #1: The company does not assume any obligation to update information or forward-looking statements provided on this call. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker #1: Please refer to the information concerning forward-looking statements and risk factors sections contained in the company's most recent 10-K, 10-Q, and 8-K filings for more details on such risk and uncertainties.

Speaker #1: In addition, for reconciliation of the non-GAAP measures discussed on this call, as well as other information regarding these measures, please refer to the earnings release and other materials in the investor relations section of the company's website.

Operator: In addition, for reconciliation of the non-GAAP measures discussed on this call, as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the company's website.

Speaker #1: It is now my pleasure to introduce Jay Patrick Gallagher, Jr., Chairman and CEO of Arthur J. Gallagher & Co. Mr. Gallagher, you may begin.

Operator: It is now my pleasure to introduce J. Patrick Gallagher Jr., Chairman and CEO of Arthur J. Gallagher & Co. Mr. Gallagher, you may begin.

Speaker #2: Thank you very much. Good afternoon, and thank you for joining us for our Q1, 2026 earnings call. On the call with me today is Doug Howell, our CFO, and other members of the management team.

J. Patrick Gallagher Jr.: Thank you very much. Good afternoon, and thank you for joining us for our Q1 2026 earnings call. On the call with me today is Doug Howell, our CFO, and other members of the management team. We had a terrific Q1. For combined brokerage and risk management segments, our two-pronged revenue growth strategy, growing both organically and through acquisitions, delivered revenue growth of 28% in Q1. Organic growth was 5%, and M&A contributed 23%, driven by strong results from AssuredPartners. On a segment basis, brokerage revenues were up 30%, of which organic was 5%. We saw strong growth across retail PC, wholesale, reinsurance, and benefits. Our risk management segment, or Gallagher Bassett, posted revenues up 14%, of which organic was 10%.

Speaker #2: We had a terrific Q1. For our brokerage and for our combined brokerage and risk management segments, our two-pronged revenue growth strategy—growing both organically and through acquisitions—delivered revenue growth of 28% in the first quarter.

Speaker #2: Organic growth was 5%, and M&A contributed 23%, driven by strong results from assured partners. On a segment basis, brokerage revenues were up 30%, of which organic was 5%.

Speaker #2: We saw strong growth across retail PC, wholesale, reinsurance, and benefits. Our risk management segment, our Gallagher-Bassett, posted revenues up 14%, of which organic was 10%.

Speaker #2: We saw excellent new business and strong client retention. And we continued to generate excellent profits. Our brokerage and risk management segments combined reported net earnings growth of 12% and adjusted EBITDA growth of 18%.

J. Patrick Gallagher Jr.: We saw excellent new business and strong client retention. We continue to generate excellent profits. Our brokerage and risk management segments combined reported net earnings growth of 12% and adjusted EBITA growth of 18%. This quarter marks 24 consecutive quarters of double-digit adjusted EBITA growth. We had another quarter of solid underlying margin expansion, which Doug will break down for you in a few minutes. Today, I'll touch on all four of our strategic pillars: growing organically, growing through mergers and acquisitions, improving our productivity and quality, and our culture. First, organic growth. Our client retention, new business win rates, and client business activity continue to be tailwinds. In today's environment, insurance rates are still contributing to organic growth, but to a lesser extent than over the last few years.

Speaker #2: This quarter marks 24 consecutive quarters of double-digit adjusted EBITDA growth. And we had another quarter of solid underlying margin expansion, which Doug will break down for you in a few minutes.

Speaker #2: Today, I'll touch on all four of our strategic pillars: growing organically, growing through mergers and acquisitions, improving our productivity and quality, and our culture.

Speaker #2: First, organic growth. Our client retention—new business win rates and client business activity continue to be tailwinds. And today, in today's environment, insurance rates are still contributing to organic growth, but to a lesser extent than over the last few years.

Speaker #2: Carriers are continuing to behave rationally and looking to grow in lines and geographies where there's an acceptable return. Yet, remaining disciplined by seeking rate increases where needed to generate an appropriate underwriting profit.

J. Patrick Gallagher Jr.: Carriers are continuing to behave rationally and looking to grow in lines and geographies where there's an acceptable return, yet remaining disciplined by seeking rate increases where needed to generate an appropriate underwriting profit. Good loss experience accounts can typically still receive premium relief, while accounts with poor experience are seeing increases. Breaking this down by businesses. Within our global retail PC businesses, the Q1 2026 market environment is materially unchanged from the prior quarter. Insurance renewal premium change, which includes both rate and exposure, continued to increase in the low single digits in the Q1, with property decreases more than offset by increases across most casualty classes. By product line, we saw the following in our global PC retail businesses. Property down 7%, with rate pressure most pronounced in cat exposed and larger risks. Professional lines, including D&O and cyber, up 2%.

Speaker #2: Good loss experience accounts can typically see premium relief, while accounts with poor experience are seeing increases. Breaking this down by businesses: within our global retail PC businesses, the first quarter 2026 market environment is materially unchanged from the prior quarter.

Speaker #2: Insurance renewal premium change, which includes both rate and exposure, continued to increase in the low single digits in the first quarter. With property decreases, more than offset by increases across most casualty classes.

Speaker #2: By product line, we saw the following in our global PC retail businesses: property down 7% with rate pressure most pronounced in CAT exposed and larger risks.

Speaker #2: Professional lines, including D&O and cyber, up 2%. Workers' comp, up up 2%. Personal lines, up 4%. Package, up 2%. And casualty lines, which includes general liability, commercial auto, and umbrella, up 4% overall.

J. Patrick Gallagher Jr.: Workers' comp up 2%. Personal lines up 4%. Package up 2%. Casualty lines, which includes general liability, commercial auto, and umbrella, up 4% overall. Excluding property, renewal premium changes increased 4% in the quarter, with higher increases in the US versus international markets. We continue to see significant differences in renewal premiums by client size, with our larger accounts driving much of the downward pressure in premiums. Our customers are opting in and buying more coverage as their prices decrease, whereas over the last few years, they were opting out of coverage when their prices were increasing. Within the US excess and surplus market, we continue to see a bifurcated market. We're seeing sub-markets behaving differently after several years of a very strong, hard market. E&S property, particularly cat-exposed risks, is the most competitive area right now.

Speaker #2: Excluding property, renewal premium changes increased 4% in the quarter, with higher increases in the US versus international markets. We continue to see significant differences in renewal premiums by client size, with our larger accounts driving much of the downward pressure in premiums.

Speaker #2: Our customers are opting in and buying more coverage as their prices decrease, whereas over the last few years, they were opting out of coverage when their prices were increasing.

Speaker #2: Within the continue to see a bifurcated market. We're seeing sub-markets behaving differently after several years of a very strong hard market. E&S property, particularly CAT exposed risks, is the most competitive area right now.

Speaker #2: That reflects a pricing reset, not a demand issue. Policy counts and submissions remain healthy, and E&S continues to be the right solution for complex property risks.

J. Patrick Gallagher Jr.: That reflects a pricing reset, not a demand issue. Policy counts and submissions remain healthy, and E&S continues to be the right solution for complex property risks. E&S casualty remains firm. Renewal premiums are up mid-single digits, capacity is disciplined, and demand is steady across general and excess liability, as well as umbrella. E&S professional lines are largely stable, with renewal premiums up low single digits and better underwriting discipline than in prior cycles. The fastest growing part of E&S continues to come from emerging specialty risks, such as data centers and AI-related infrastructure, as well as other complex exposures. These risks don't fit well in the admitted markets and represent a structural multi-year growth opportunity for E&S. Moving to reinsurance. The market remains well-capitalized, and renewal activity continues to reflect ample capacity.

Speaker #2: E&S casualty remains firm. Renewal premiums are up mid-single digits. Capacity is disciplined, and demand is steady across general and excess liability, as well as umbrella.

Speaker #2: E&S professional lines are largely stable, with renewal premiums up low single digits and better underwriting discipline than in prior cycles. The fastest-growing part of E&S continues to come from emerging specialty risks, such as data centers and AI-related infrastructure, as well as other complex exposures.

Speaker #2: These risks don't fit well in the admitted markets and represent a structural multi-year growth opportunity for E&S. Moving to reinsurance, the market remains well-capitalized, and renewal activity continues to reflect ample capacity.

Speaker #2: In the first quarter, we saw strong growth across lines and across geographies, with another excellent quarter of new business overcoming rate headwinds. At the 1-month renewals, we saw rate decreases across property and specialty lines, with lower layers holding up better than top-end of the reinsurance towers.

J. Patrick Gallagher Jr.: In Q1, we saw strong growth across lines and across geographies with another excellent quarter of new business overcoming rate headwinds. At the one-one renewals, we saw rate decreases across property and specialty lines, with lower layers holding up better than top end of the reinsurance towers. Within casualty, pricing was broadly stable as most reinsurers remained cautious around US-focused casualty risks given loss cost trends and prior year loss development. Outside the United States, additional capacity put some downward pressure on pricing in selected markets. The four-one renewals showed similar conditions with a bit more downward pricing pressure on the Japan-specific renewals. Outside of Japan, we saw continued interest from carriers in managing earnings volatility and supporting growth through additional protection.

Speaker #2: Within casualty, pricing was broadly stable, as most reinsurers remain cautious around US-focused casualty risks, given loss-cost trends and prior year loss development. Outside the United States, additional capacity put some downward pressure on pricing in selected markets.

Speaker #2: The 4-month renewals showed similar conditions, with a bit more downward pricing pressure on the Japan-specific renewals. Outside of Japan, we saw continued interest from carriers in managing earnings volatility and supporting growth through additional protection.

Speaker #2: Geopolitical developments, including the conflict in the Middle East, are impacting specific coverages such as marine war and political violence and terror, though it's too early to assess any broader ultimate impact on reinsurance pricing.

J. Patrick Gallagher Jr.: Geopolitical developments, including the conflict in the Middle East, are impacting specific coverages such as marine war and political violence and terror, though it is too early to assess any broader ultimate impact on reinsurance pricing. Today's dynamic market is ideal for our reinsurance team to demonstrate our expertise, product knowledge, and data-driven capabilities to ensure the best coverage for our clients. Turning to London specialty. Similar to US E&S market, pressure continues in North American cat-exposed property, while competition in D&O, professional lines, financial institutions, and cyber is moderating. War-related risks remain the clear exception. Marine aviation and political violence exposures tied to active conflict zones are seeing significant repricing and more selective deployment of capacity. War cover remains available, it requires careful structure and coordinated execution across markets.

Speaker #2: Today's dynamic market is ideal for our reinsurance team to demonstrate our expertise, product knowledge, and data-driven capabilities to ensure the best coverage for our clients.

Speaker #2: Turning to London specialty, similar to US E&S market, pressure continues in North American CAT exposed property, while competition in D&O, professional lines, financial institutions, and cyber is moderating.

Speaker #2: We're related, war-related risks remain the clear exception. Marine aviation and political violence exposures tied to active conflict zones are seeing significant repricing and more selective deployment of capacity.

Speaker #2: War cover remains available, but it requires careful structure and coordinated execution across markets. Our teams across London, the US, and our international network are working closely together to secure capacity under current market terms and help our clients to navigate this rapidly changing environment.

J. Patrick Gallagher Jr.: Our teams across London, the US, and our international network are working closely together to secure capacity under current market terms and help our clients to navigate this rapidly changing environment. Moving to employee benefits, which continues to perform very well. We're seeing steady demand from employers across health, retirement, voluntary benefits, executive benefits, life, and HR solutions. There's more and more demand for our experts to provide creative solutions to help our clients control their escalating benefits costs, driven by general procedures, innovative medical treatments, and prescription drugs. As clients compensate us based on our advice, advocacy, creative plan design, and cost management strategies, all of which support both demand and retention across our benefits business. Last but not least, Gallagher Bassett posted another strong growth quarter.

Speaker #2: Moving to employee benefits, which continues to perform very well. We're seeing steady demand from employers across health, retirement, voluntary benefits, executive benefits, life, and HR solutions.

Speaker #2: Our clients are still actively hiring and remain focused on talent attraction and talent retention. And there's more and more demand for our experts to provide creative solutions to help our clients control their escalating benefits costs.

Speaker #2: Driven by general procedures, innovative medical treatments, and as well as prescription drugs. As clients compensate us based on our advice, advocacy, creative plan design, and cost management strategies, all of which support both demand and retention across our benefits business.

Speaker #2: Last but not least, Gallagher & Bassett posted another strong growth quarter. We continue to see strong new business and excellent client retention. The team is adding new products, new services, and embracing new technology, including AI, that machine learning to further improve the claims experience for our clients.

J. Patrick Gallagher Jr.: We continue to see strong new business and excellent client retention. The team is adding new products, new services, and embracing new technology, including AI and machine learning, to further improve the claims experience for our clients. Gallagher Bassett is positioned for fantastic growth again in 2026. Let me provide you some comments on our view of the economy. The US labor market continues to show strong demand for new workers, with the number of job openings still ahead of the number of people looking for work. Our daily revenue indications have historically been a terrific indicator of economic activity. Our proprietary data from audits, endorsements, and cancellations continues to show solid business activity through Q1 and actually through yesterday.

Speaker #2: Gallagher & Bassett is positioned for a fantastic growth again in 2026. Next, let me provide you some comments on our view of the economy.

Speaker #2: The US labor market continues to show strong demand for new workers, with the number of job openings still ahead of the number of people looking for work.

Speaker #2: Our daily revenue indications have historically been a terrific indicator of economic activity. Our proprietary data from audits and endorsements and cancellations continues to show solid business activity through the first quarter, and actually through yesterday.

Speaker #2: This data shows that exposure units, such as revenues, payroll headcount, or trucks on the road, to name a few, are still in positive territory and our clients' businesses are continuing to grow.

J. Patrick Gallagher Jr.: This data shows that exposure units, such as revenues, payroll headcount, or trucks on the road, to name a few, are still in positive territory, and our clients' businesses are continuing to grow. To wrap up my thoughts on organic growth prospects, today pricing, property pricing is moderating. That's well understood. Property is only one part of our very large and very diverse portfolio. Casualty, benefits, reinsurance, and Gallagher Bassett are all strong, and that strength is broad-based across geographies, client sizes, and products. In addition, our client exposure growth is solid, our retention is stable, and we are seeing excellent new business wins, all positively contributing to our organic growth. The demand for our expertise continues to grow because clients value our advocacy, our analytics, and our ability to navigate complexity.

Speaker #2: So to wrap up my thoughts on organic growth prospects, today pricing, property pricing is moderating. That's well understood. But property is only one part of our very large and very diverse portfolio.

Speaker #2: Casualty, benefits, reinsurance, and Gallagher & Bassett are all strong. And that strength is broad-based across geographies, client sizes, and products. In addition, our client exposure growth is solid, our retention is stable, and we are seeing excellent new business wins all positively contributing to our organic growth.

Speaker #2: The demand for our expertise continues to grow because clients value our advocacy, our analytics, and our ability to navigate complexity. This gives us confidence in the durability of our results and provides further confidence in our 2026 full-year organic growth outlook of 6%.

J. Patrick Gallagher Jr.: This gives us confidence in the durability of our results and provides further confidence in our 2026 full-year organic growth outlook of 6%. Now, shifting to our second strategic pillar, mergers and acquisitions. During Q1, we completed 9 new tuck-in mergers representing around $60 million of estimated annualized revenue. Looking at our pipeline, we have over 40 term sheets signed or being prepared, representing around $400 million of annualized revenues. For those new partners joining us, I'd like to extend a very warm welcome to the Gallagher family of professionals. Good firms always have a choice, and it would be terrific if they chose to partner with Gallagher. As for the AssuredPartners acquisition, we are following our proven integration playbook developed from doing over 750 mergers over the last 20 years. We are on plan without exception.

Speaker #2: Now shifting to our second strategic pillar, mergers and acquisitions. During the first quarter, we completed nine new tuck-in mergers, representing around 60 million dollars of estimated annualized revenue.

Speaker #2: Looking at our pipeline, we have over 40 term sheets signed or being prepared, representing around 400 million dollars of annualized revenues. For those new partners joining us, I'd like to extend a very warm welcome to the Gallagher family of professionals.

Speaker #2: Good firms always have a choice, and it would be terrific if they chose to partner with Gallagher. As for the AssuredPartners acquisition, we are following our proven integration playbook, developed from doing over 750 mergers over the last 20 years.

Speaker #2: We are on plan without exception. The cultural alignment has been exactly what we expected, a culture with a strong client-first mindset and a genuine excitement for leveraging our expertise, tools, and capabilities.

J. Patrick Gallagher Jr.: The cultural alignment has been exactly what we expected, a culture with a strong client-first mindset and a genuine excitement for leveraging our expertise, tools, and capabilities. We are 8 months in, performance is terrific, and we are already better together. Let me move to our third strategic pillar to continuously improve our productivity and quality. We view AI, digitization, and automation as a continuation of that long-standing strategy. It builds on decades of work standardizing processes, centralizing our global data, and improving execution, all to help our people provide the very best advice and service to our clients. At our 17 March Investor Day, we spent considerable time discussing how we were already deploying AI across Gallagher. I invite you to listen to this webcast still on our website. Let me summarize a few key points from our March commentary.

Speaker #2: We are eight months in, performance is terrific, and we are already better together. Let me move to our third strategic pillar, to continuously improve our productivity and quality.

Speaker #2: We view AI, digitalization, and automation as a continuation of that long-standing strategy. It builds on decades of work standardizing processes, centralizing our global data, and improving execution.

Speaker #2: All to help our people provide the very best advice and service to our clients. At our March 17th investor day, we spent considerable time discussing how we were already deploying AI across Gallagher.

Speaker #2: I invite you to listen to this webcast still on our website. Let me summarize a few key points from our March commentary. First, we expect AI to be minimally disruptive when it comes to selling insurance, providing consulting services, and managing claims.

J. Patrick Gallagher Jr.: First, we expect AI to be minimally disruptive when it comes to selling insurance, providing consulting services, and managing claims. Our business is advisory-led, complex, and relationship-driven. Second, AI actually should accelerate our growth. AI enhances our ability to deliver faster, higher quality advice, and more tailored client solutions, improving our speed to market, win rates, retention, and provides better client experiences. Third, operational change is not new to Gallagher. For more than 2 decades, we've standardized processes and centralized our proprietary data across the company. That foundation allows us to deploy AI today across PC, claims, reinsurance, benefits, and mergers and acquisitions. Because we have embedded operational excellence into our DNA, we already have the brains and financial resources to quickly deploy AI. In our view, we're ahead, and that advantage compounds over time. Fourth, AI is already deployed across many of our core platforms and workflows.

Speaker #2: Our business is advisory-led, complex, and relationship-driven. Second, AI should actually accelerate our growth. AI enhances our ability to deliver faster, higher-quality advice and more tailored client solutions, improving our speed to market, win rates, retention, and provides better client experiences.

Speaker #2: Third, operational change is not new to Gallagher. For more than two decades, we've standardized processes and centralized our proprietary data across the company. That foundation allows us to deploy AI today across PC, claims, reinsurance, benefits, and mergers and acquisitions.

Speaker #2: Because we have embedded operational excellence into our DNA, we already have the brains and financial resources to quickly deploy AI. In our view, we're ahead, and that advantage compounds over time.

Speaker #2: Fourth, AI has already deployed across many of our core platforms and workflows. It helps our teams make better decisions and spend more time advising clients while continuing to raise productivity and quality.

J. Patrick Gallagher Jr.: It helps our teams make better decisions and spend more time advising clients while continuing to raise productivity and quality. Finally, and most importantly, AI strengthens, not replaces, the broker and advisor model. AI is another tool that strengthens how we serve clients. It does not change the fundamental nature of our business. AI makes every single one of our professionals better at what they already do by amplifying our expertise, our data, and our market access. Let me wrap up by spending some time on our fourth strategic pillar, our culture. We are a growth culture company. If you spend some time reading our mission statement and the 25 tenets of The Gallagher Way, you might come to realize that they are all really about supporting growth.

Speaker #2: And finally, and most importantly, AI strengthens not replaces, the broker and advisor model. AI is another tool to strengthen how we serve clients. It does not change the fundamental nature of our business.

Speaker #2: AI makes every single one of our professionals better at what they already do by amplifying our expertise, our data, and our market access. Let me wrap up by spending some time on our fourth strategic pillar, our culture.

Speaker #2: We are a growth culture company. If you spend some time reading our mission statement and the 25 tenets of the Gallagher way, you might come to realize that they are all really about supporting growth.

Speaker #2: But growing the right way—the collaborative way, the professional and respectful and ethical way—all the while holding ourselves accountable for execution and growing shareholder value.

J. Patrick Gallagher Jr.: Growing the right way, the collaborative way, the professional and respectful and ethical way, all the while holding ourselves accountable for execution and growing shareholder value. We are a long-term growth culture that recognizes we grow because of the relevance of our advice, our analytics, and our ability to navigate complexity, not because where we are in an insurance pricing cycle. We've proven we can grow through any cycle, this one is no different. Culture also allows us to scale. As we grow organically and through mergers, we don't change who we are. Our culture promotes welcoming new colleagues into a model that emphasizes collaboration, entrepreneurship, and shared success, all supported by strong processes, data, and tools. Importantly, culture is what makes our investments in talent, technology, and AI work.

Speaker #2: We are a long-term growth culture that recognizes we grow because of the relevance of our advice, our analytics, and our ability to navigate complexity.

Speaker #2: Not because where we are in an insurance pricing cycle, we've proven we can grow through any cycle, and this one is no different. Culture is also what allows us to scale.

Speaker #2: As we grow organically and through mergers, we don't change who we are. Our culture promotes welcoming new colleagues into a model that emphasizes collaboration, entrepreneurship, and shared success, all supported by strong processes, data, and tools.

Speaker #2: And, importantly, culture is what makes our investments in talent, technology, and AI work. Our people embrace change when it helps them better serve their clients, improve quality, and deliver stronger results.

J. Patrick Gallagher Jr.: Our people embrace change when it helps them better serve their clients, improve quality, and deliver stronger results. When we talk about Gallagher's performance, our culture isn't separate from the numbers, it's embedded in them. Okay, an excellent quarter behind us, a terrific future ahead of us. I'll stop now and turn it over to Doug to walk through the financial details. Doug?

Speaker #2: So when we talk about Gallagher's performance, our culture is inseparable from the numbers. It's embedded in them. Okay, an excellent quarter behind us, a terrific future ahead of us.

Speaker #2: I'll stop now and turn it over to Doug to walk through the financial details. Doug? All right. Thanks, Pat. And hello, everyone. Today, I'll spend about three minutes flipping page by page through our earnings release and give some quick highlights.

Douglas K. Howell: All right. Thanks, Pat, and hello, everyone. Today, I'll spend about 3 minutes flipping page by page through our earnings release and give some quick highlights. I'll then spend about 5 minutes on the CFO commentary document we post on our website, and then close with 1 minute on cash, M&A, and capital management. Overall, the punchlines you'll hear today, and you've probably already seen that, in your review of our information, we are right in line and in many cases better than what we forecasted in our March Investor Day. Okay, let's go to the earnings release, page 1. Just step back for 1 minute. Adjusted revenues, EBITAC, and EPS all up 30%.

Speaker #2: I'll then spend about five minutes on the CFO commentary document we post on our website. And then close with a minute on cash, M&A, and capital management.

Speaker #2: Overall, the punchline you'll hear today, and you probably already seen that in your review of our information, we are right in line and in many cases better than what we forecasted in our March IR day.

Speaker #2: Okay, let's go to the earnings release. Page one. Just step back for a minute. Adjusted revenues, EBITDA, and EPS all up 30%. You'll get to those percentages when you remove from prior year numbers, 143 million dollars, that's 41 cents, of interest income we earned on the funds we are holding to buy assured partners.

Douglas K. Howell: You'll get to those percentages when you remove from prior year numbers $143 million, that's $0.41, of interest income we earned on the funds we are holding to buy AssuredPartners. You'll read that in the footnote at the bottom of this page. That's an amazing quarter and demonstrates our four strategic pillars are delivering terrific shareholder value. Moving next to page 2. Brokerage organic at 5%, right in line with our March Investor Day expectations. One call-out here, supplementals and contingents combined up nearly 10%. As you've seen in the past, there can be some geography between those two lines, especially in Q1 as we renegotiate contracts to start a new year. At the bottom of the page, you'll see we had a solid start to the year for our tuck-in M&A program.

Speaker #2: You'll read that in the footnote at the bottom of this page. That's an amazing quarter and demonstrates our four strategic pillars, our delivering terrific shareholder value.

Speaker #2: Moving next to page two. Brokerage organic at 5%. Right in line with our March IR day expectations. One call out here. Supplementals and contingents combined up nearly 10%.

Speaker #2: As you've seen in the past, there can be some geography between those two lines, especially in first quarter as we renegotiate contracts to start a new year.

Speaker #2: Then at the bottom of the page, you'll see we had a solid start to the year for our tuck-in M&A program. Our two-pronged growth strategy combined, that's organic and M&A, posted 28% total revenue growth this quarter for our brokerage segment.

Douglas K. Howell: Our two-pronged growth strategy combined, that's organic and M&A, posted 28% total revenue growth this quarter for our brokerage segment. That'd be 33% if you remove the $143 million of interest income on the AssuredPartners funds. That's absolutely terrific. Moving to page 3 and the top of page 4. As we discussed during our last few earnings and Investor Day calls, current quarter percentages at the bottom of these tables are not really all that helpful when compared to prior year because prior year had that interest income from the AssuredPartners funds I just highlighted. It really clouds comparability. I think it's better for me to defer comments on our margin until I get to page 7 of the CFO commentary document.

Speaker #2: That'd be 33% if we removed the 143 million dollars of interest income on the AP funds. That's absolutely terrific. Moving to the top of page moving to we discussed during our last few earnings and IR day calls, current quarter percentages at the bottom of these tables are not really all that helpful when compared to because prior year had that interest income from the AP funds I just highlighted.

Speaker #2: It really clouds comparability. So I think it's better for me to defer comments on our margin until I get to page seven of the CFO commentary document.

Speaker #2: When I do, you'll quickly see that our productivity and quality strategic pillar delivered strong underlying margin expansion this quarter right in line with our March IR day forecast.

Douglas K. Howell: When I do, you'll quickly see that our productivity and quality strategic pillar delivered strong underlying margin expansion this quarter, right in line with our March Investor Day forecast. Moving now to the bottom of page four, an excellent quarter for our risk management segment, Gallagher Bassett. Organic at 10% and M&A added another 2.5 points, bringing total reported revenue up 14% and adjusted revenue up 13% for this segment. This too shows the power of our two-pronged growth strategies. Moving now to page five. Risk management showed continuous compensation and operating expense ratio improvement, leading to an adjusted EBITAC margin up 130 basis points. There is no noise in this segment from interest on funds held to buy AssuredPartners.

Speaker #2: Moving now to the bottom of page four, an excellent quarter for our risk management segment, Gallagher Bassett. Organic at 10% and M&A added another two and a half points, bringing total reported revenue up 14% and adjusted revenue up 13% for this segment.

Speaker #2: This too shows the power of our two-pronged growth strategies. So moving now to page five. Risk management showed continuous compensation and operating expense ratio improvement, leading to an adjusted EBITDA margin up 130 basis points.

Speaker #2: There is no noise in this segment from interest on funds held to buy AP, so it's very easy to see the excellent growth in our revenues, improvements in our productivity, and our growth in our adjusted EBITDA.

Douglas K. Howell: It's very easy to see the excellent growth in our revenues, improvements in our productivity, and our growth in our adjusted EBITAC, all better than our IR date commentary and forecast. Flipping to page 6, the corporate segment adjusted results were in total pretty close to the midpoint of the range we provided during our March Investor Day. There's no new news here. Last on page 7, about halfway down, you'll read we repurchased about 1.4 million shares for approximately $310 million this quarter. All right, let's leave the earnings release and go now to the CFO commentary document. Starting on page 3, most items are very close to what we provided in March, so just double-check that these items are considered in your models.

Speaker #2: All better than our IR day commentary and forecast. Flipping to page six, the corporate segment adjusted results were in total pretty close to the midpoint of the range we provided during our March IR day.

Speaker #2: So there's no new news here. Last, on page seven, about halfway down, you'll read we repurchased about 1.4 million shares for approximately $310 million this quarter.

Speaker #2: All right, let's leave the earnings release and go now to the CFO commentary document. Starting on page three, most items are very close to what we provided in March.

Speaker #2: So just double-check that these items are considered in your models. Going to page four. This is the new organic growth table we started providing last December.

Douglas K. Howell: Going to page 4, this is the new organic growth table we started providing last December. Here are the punchlines. First, we saw solid Q1 organic growth across each business and geography, with each posting organic at or above our March Investor Day commentary. Next, we've now added our Q2 outlook and see similar performance for each of our businesses. These percentages incorporate all the information Pat just provided, such as net new business wins, customer buying behaviors, rate, the rate environment, and the economic landscape. These are our midpoint best estimates roundup as of today. Third, same with our full-year outlook, which has not changed from March. We post that in 2026 will be another excellent year of organic growth. Moving to page 5, the investment income table. Three comments here.

Speaker #2: Here are the punchlines. First, we saw solid first quarter organic growth across each business and geography. With each posting organic at or above our March IR day commentary.

Speaker #2: Next, we've now added our second quarter outlook and see similar performance for each of our businesses. These percentages incorporate all the information Pat just provided such as net new business wins, customer buying behaviors, the rate environment, and the economic landscape.

Speaker #2: These are our midpoint best estimates, ground up, as of today. Third, same with our full-year outlook, which has not changed from March. We posit that in '26 it will be another excellent year of organic growth.

Speaker #2: Moving to page five, the investment income table. Three comments here. First, our 26 forecasts reflect current FX rates and changes in fiduciary cash balances.

Douglas K. Howell: First, our 2026 forecasts reflect current FX rates and changes in fiduciary cash balances. Our forward estimates now assume one future 25 basis point rate cut in September. This is a helpful table to show you a full historical view of the amount of interest income we earned on the funds we were holding to buy AssuredPartners. It's a reminder as a heads-up when you build your model, Q2 had $144 million of interest earned, and then $76 million in Q3 2025, which will again cause comparability noise throughout our results when we post our the next two quarters results. Staying on page 5, shifting down to the rollover revenue table, which excludes AssuredPartners. Four quick comments here.

Speaker #2: Second, our forward estimates now assume one future 25 basis point rate cut in September. Third, this is a helpful table to show you a full historical view of the amount of interest income we earned on the funds we were holding to buy AP.

Speaker #2: And it's a reminder of, as a heads up, when you build your model, second quarter had 144 million dollars of interest earned and then 76 million in the third quarter of 25.

Speaker #2: Which will again cause comparability noise throughout our results when we post our next two quarters results. Staying on page five but shifting down to the rollover revenue table, which excludes assured partners.

Speaker #2: Four quick comments here. First, the first quarter 26 subtotal of 126 million dollars for brokerage came in pretty close to our March estimate. Second, looking forward, the pinkish columns to the right include estimated 26 revenues for brokerage M&A close through yesterday and, of course, you'll need to make a pick for future M&A also.

Douglas K. Howell: First, the Q1 2026 subtotal of $126 million for brokerage came in pretty close to our March estimate. Second, looking forward, the pinkish columns to the right include estimated 2026 revenues for brokerage M&A closed through yesterday. Of course, you'll need to make a pick for future M&A also. Third, one modeling heads up to make sure you adjust your prior year revenues for the divestiture and other line before you apply your organic growth assumption. Fourth, you'll see the same information down below for our risk management segment. All right, let's move to page 6, information on AssuredPartners. A few comments here. They're mostly modeling helpers, then I'll add some qualitative comments at the end. First, remember that forecasted numbers we provide in this table are at the midpoint of our estimates.

Speaker #2: Third, one modeling heads up to make sure you adjust your prior year revenues for the divestiture and other line before you apply your organic growth assumption.

Speaker #2: And fourth, you'll see the same information down below for our risk management segment. All right, let's move to page six. Information on assured partners.

Speaker #2: A few comments here. They're mostly modeling helpers and then I'll add some qualitative comments at the end. First, remember that forecasted numbers we provide in this table are at the midpoint of our estimates.

Speaker #2: As we convert locations onto our systems, there could be some small movements between quarters and some additional small netting like we saw last quarter.

Douglas K. Howell: As we convert locations onto our systems, there could be some small movements between quarters and some additional small netting like we saw last quarter. Second, the footnote there reminds you that non-cash figures shown on this page, which reflect depreciation and earn out payable, are included within our estimates on page three. Please don't double count. Third, this table does not include any revenue or expense synergies. Those would be incremental to the numbers you see here, and you would need to model them separately. The footnote says that we still see annualized run rate synergies of $160 million by the end of 2026, and then up to $300 million by early 2028. That said, more and more, I'm feeling there could be some additional upside to these numbers.

Speaker #2: Second, the footnote there reminds you that non-cash figures shown on this page, which reflect depreciation and earn-out payable, are included within our estimates on page three.

Speaker #2: So please don't double-count. Third, this table does not include any revenue or expense synergies, so those would be incremental to the numbers you see here, and you would need to model them separately.

Speaker #2: The footnote says that we still see annualized run rate synergies of 160 million dollars by the end of 26 and then up to 300 million dollars by early 28.

Speaker #2: That said, more and more I'm feeling there could be some additional upside to these numbers. Maybe I'll have an update during our June IR day.

Douglas K. Howell: Maybe I'll have an update during our June Investor Day. Fourth, a reminder that you can use for modeling the Q2 2026 column as is, but for Q3 and Q4, you should only add the delta between the pink numbers and the blue 2025 numbers. Fifth, as for financial performance, an excellent first quarter, which came in fairly close to our March Investor Day estimates. Only a few small changes to our outlook for the rest of the year also. Qualitatively, our clients are happy and client retention is excellent. The integration plan is tracking to our expectations. Our teams are energized and coming together. We're having some terrific new business wins, showing that we are indeed better together, and our employee and producer retention is strong, right at historical norms. All of this gives me confidence in our 2026 financial performance outlook.

Speaker #2: Fourth, a reminder that you can use for modeling the second quarter 26 column as is, but for third and fourth quarters, you should only add the delta between the pink numbers and the blue 25 numbers.

Speaker #2: Fifth, as for financial performance, an excellent first quarter, which came in fairly close to our March IR Day estimates. Only a few small changes to our outlook for the rest of the year also.

Speaker #2: Qualitatively, our clients are happy and client retention is excellent. The integration is planned and tracking to our expectations. Our teams are energized and coming together.

Speaker #2: We're having some terrific new business wins, showing that we are indeed better together, and our employee and producer retention is strong right at the and right at historical norms.

Speaker #2: All of this gives me confidence in our 26 financial performance outlook. Moving now to page seven, the brokerage segment margin bridge. Favorable comments continue to come in that this picture is worth 1,000 words.

Douglas K. Howell: Moving now to page seven, the brokerage segment margin bridge. Favorable comments continue to come in that this picture is worth a thousand words. It's very easy to see all the components that influence our margin change period over period. Lets you quickly dig out that our productivity and quality efforts are delivering underlying margin expansion. You'll see that on the second to the last line of the table. We had terrific expansion this quarter of 50 basis points, and you'll see to the far right, we're still forecasting full-year, 40 to 60 basis points of underlying margin expansion. Both of those are right in line with what we had discussed during our March Investor Day.

Speaker #2: It's very easy to see all the components that influence our margin change period over period. Lets you quickly dig out that our productivity and quality efforts are delivering underlying margin expansion.

Speaker #2: You'll see that on the second to the last line of the table. We had terrific expansion this quarter of 50 basis points. And you'll see to the far right, we're still forecasting full year 40 to 60 basis points of underlying margin expansion.

Speaker #2: Both of those are right in line with what we had discussed during our March IR day. And despite sounding like a broken record, with another callout that the first line of this table shows you the impact of investment income earned on the funds we held to buy AP.

Douglas K. Howell: Despite sounding like a broken record, worth another call-out that the first line of this table shows you the impact of investment income earned on the funds we held to buy AssuredPartners. That's what will again cause the headline headache for the next 2 quarters. Thankfully, it should be an easier compare. All right, let's move to page 8, our corporate segment. You'll see that our adjusted Q1, as well as our outlook for the rest of the year, are very close to what we presented in March. Just 2 call-outs here. The upper right box shows you the changes in FX, which caused the corporate line to bounce around a bit. Remember, these unrealized gains and losses are non-cash. Now look at the lower right box. This is new and a bit of housekeeping here.

Speaker #2: That's what will again cause the headline headache for the next two quarters. Then, thankfully, it should be an easier compare. All right, let's move to page eight, our corporate segment.

Speaker #2: You'll see that our adjusted first quarter, as well as our outlook for the rest of the year, are very close to what we presented in March.

Speaker #2: Just two callouts here. The upper right box shows you the changes in FX, which cause the corporate line to bounce around a bit. But remember, these unrealized gains and losses are non-cash.

Speaker #2: The now, look at the lower right box. This is new and a bit of housekeeping here. We removed the separate page that recapped our historical clean energy investment cash flows.

Douglas K. Howell: We removed the separate page that recapped our historical clean energy investment cash flows. This box tells the same story, just shorter. It shows you that we have $655 million of tax credit carryovers that we will use over the next few years. Second, it also shows you that we have about $11 billion of tax-deductible amortization expense which we'll deduct in the future. Together, these two items are worth about $3.4 billion of cash tax savings. This gets you to the punch line we've added in this box. Our cash taxes paid will be around 10% of EBIT for the foreseeable future. You model that, you'll get close. All right. Finally, a few comments on cash, capital management, and M&A funding.

Speaker #2: This box tells the same story, just shorter. It shows you that we had 655 million dollars of tax credit carryovers that we will use over the next few years.

Speaker #2: Second, it also shows you that we have about $11 billion of tax-deductible amortization expense, which we'll deduct in the future. Together, these two items are worth about $3.4 billion of cash tax savings.

Speaker #2: Which gets you to the punchline we've added in this box. Our cash taxes paid will be around 10% of EBITDA for the foreseeable future.

Speaker #2: You model that and you'll get close. All right. Finally, a few comments on cash, capital management, M&A funding. When I look at available cash on hand, expected free cash flows, and future investment grade borrowings, over the next two years, we might have close to 10 billion dollars to fund M&A before using any stock.

Douglas K. Howell: When I look at available cash on hand, expected free cash flows, and future investment-grade borrowings, over the next 2 years, we might have close to $10 billion to fund M&A before using any stock. Our M&A pipeline remains strong and is full of targets at attractive multiples, which we are seeing coming down a bit. Still creates an immediate shareholder value through nice arbitrage. I mentioned earlier that in Q1, we repurchased approximately $310 million of our shares. We continue to believe our equity is woefully undervalued by the market. This repurchase was opportunistic. Our priorities really haven't changed. We'll continue to invest in organic growth.

Speaker #2: Our M&A pipeline remains strong and is full of targets that attract at multiples which we are seeing coming down a bit. Still creates an immediate shareholder value through nice arbitrage.

Speaker #2: I mentioned earlier that in the first quarter, we repurchased approximately $310 million of our shares. We continue to believe our equity is woefully undervalued by the market, so this repurchase was optimistic.

Speaker #2: But our priorities really haven't changed. We'll continue to invest in organic growth. We'll remain active in mergers and acquisitions, staying consistent in our approach and disciplined in our pricing, and we will deploy excess capital in a way that maximizes long-term shareholder value.

Douglas K. Howell: We'll remain active in mergers and acquisitions, staying consistent in our approach and disciplined in our pricing. We will deploy excess capital in a way that maximizes long-term shareholder value. Those are my comments. A great quarter to kick off what looks like could be another terrific year. Back to you, Pat.

Speaker #2: So those are my comments. A great quarter to kick off what looks like could be another terrific year. Back to you, Pat. Thanks, Doug.

J. Patrick Gallagher Jr.: Thanks, Doug. Operator, I think we're ready for some questions.

Speaker #2: Operator, I think we're ready for some questions.

Operator: Thank you. With that, we will be conducting a question and answer session. One moment while we poll for questions. Our first question comes from the line of Charles Lederer from BMO Capital Markets. Please proceed with your question.

Operator: Thank you. With that, we will be conducting a question and answer session. One moment while we poll for questions. Our first question comes from the line of Charlie Lederer from BMO Capital Markets. Please proceed with your question.

Speaker #3: Thank you. And with that, we will be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad and a confirmation tone will indicate that your line is in the question queue.

Speaker #3: You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

Speaker #3: One moment while we pull for questions. And our first question comes from the line of Charlie Letterer from BMO Capital Markets. Please proceed with your question.

Speaker #4: Hey, good evening. Appreciate Pat's comments on the strength outside of property lines. Just looking at slide four of the CFO commentary, can you expand on what your expectations are for the higher organic growth in America's retail in the second quarter?

Charles Lederer: Hey, good evening. appreciate Pat's comments on the strength outside of property lines. just looking at slide 4 of the CFO commentary, can you expand on what your expectations for the higher organic growth in Americas Retail in Q2? I guess it's just a little surprising given the greater property mix in Q2. Thanks.

Charlie Lederer: Hey, good evening. appreciate Pat's comments on the strength outside of property lines. just looking at slide 4 of the CFO commentary, can you expand on what your expectations for the higher organic growth in Americas Retail in Q2? I guess it's just a little surprising given the greater property mix in Q2. Thanks.

Speaker #4: I guess it's just a little surprising given the greater property mix in two queues. Thanks.

Speaker #5: So the question you're asking about—if I look here in the second quarter, we believe there's 5% in our Americas retail brokerage segment. Is that what you're looking at?

Douglas K. Howell: The question you're asking about, if I look here in Q2, we believe there's 5% in our Americas Retail Brokerage segment. Is that what you're looking at?

Speaker #4: Yeah.

Charles Lederer: Yeah.

Charlie Lederer: Yeah.

Speaker #5: Yeah. All right. Fine. So if you really look at what last year, what happened is Canada actually had a slightly smaller quarter in the second quarter last year.

Douglas K. Howell: Yeah. All right. Fine. If you really look at what last year, what happened is Canada actually had a slightly smaller quarter in Q2 last year. That's why it gets it closer to that 5% number as we're going forward here.

Speaker #5: So that's why it gets it closer to that 5% number as we're going forward here.

Speaker #4: Got it, thank you. And then, can you talk a little bit more about whether the M&A environment has changed over the last couple of months, and how much that's factoring into your buyback decisions?

Charles Lederer: Got it. Thank you. Can you talk a little bit more about whether the M&A environment has changed over the last couple of months and how much that's factoring into your buyback decisions? Can you share how much you've repurchased so far in Q2? Thanks.

Charlie Lederer: Got it. Thank you. Can you talk a little bit more about whether the M&A environment has changed over the last couple of months and how much that's factoring into your buyback decisions? Can you share how much you've repurchased so far in Q2? Thanks.

Speaker #4: And can you share how much you've purchased or repurchased so far in the second quarter? Thanks.

Douglas K. Howell: The question here is, let's under by that, we've been in a quiet period the entire Q2, so we have not repurchased any shares thus far this quarter. As for the environment on M&A, multiples are coming down. We are seeing that. We're seeing that sellers are becoming a little bit more rational on that. Q1 is historically always our smallest quarter, so you can't really read much into that. We typically have a wrap-up to the a little bit more to the end of the year. We'll show more in the later quarters.

Speaker #5: So the question here is let's undermine that. We've been in a quiet period the entire second quarter, so we have not repurchased any shares thus far this quarter.

Speaker #5: As for the environment on M&A, multiples are coming down. We are seeing that. We're seeing that sellers are becoming a little bit more rational on that.

Speaker #5: First quarter is historically always our smallest quarter, so you can't really read much into that. We typically have a wrap-up to the a little bit more to the end of the year.

Speaker #5: We'll show more in the later quarters. And then finally, I think that when it comes to balancing M&A versus share repurchases, if there's a terrific opportunity out there right in the middle of the fairway that makes us better together, that is a long-term buy, we still think there's value in that number over our shares.

Douglas K. Howell: Finally, I think that when it comes to balancing M&A versus share repurchases, if there's a terrific opportunity out there right in the middle of the fairway that makes us better together that is a long-term buy, we still think there's value in that number over our shares. It's got to be at the right multiple in today's world.

Speaker #5: So it's got to be at the right multiple in today's world.

Speaker #4: Thank you.

Charles Lederer: Thank you.

Charlie Lederer: Thank you.

Speaker #5: Thanks, Charlie.

Douglas K. Howell: Thanks, Charlie.

Speaker #3: Thank you. And our next question comes from the line of Elise Greenspan from Wells Fargo. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Elyse Greenspan from Wells Fargo. Please proceed with your question.

Elyse Greenspan: Hi. Hi, thanks. Good evening. My first question is on the core commission and fee organic growth, the 4% in the quarter. In your minds, does that represent a floor?

Speaker #6: Hi, thanks. Good evening. My first question is on the core commission and fee organic growth—the 4% in the quarter. In your minds, does that represent a floor?

Speaker #5: I'm sorry. Does that make Elise, I just didn't hear you. Say it again.

Douglas K. Howell: I'm sorry, Elyse, I just didn't hear you. Say it again.

Speaker #2: Does it represent a floor?

J. Patrick Gallagher Jr.: Does it represent a floor?

Speaker #6: Yeah, like a floor to where you see the growth from here—the 4%. Yeah.

Elyse Greenspan: Yeah, like a floor to where you see the growth from here.

J. Patrick Gallagher Jr.: Oh.

Elyse Greenspan: The 4%. Yeah.

Speaker #2: Yes. As we look out for at this point in time, as we said in our prepared remarks, as we look forward, we see a pretty good year coming at us.

J. Patrick Gallagher Jr.: Yes. As we look out for the, at a, at this point in time, as we said in our prepared remarks, as we look forward, we see a pretty good year coming at us.

Speaker #6: And then my second question, right, you guys obviously provide a lot of guidance and disclosure by the line, right? So it looks like organic growth, right, in brokerage you're looking 4.5 in the Q1, 5% you're looking for in the second quarter, and you left the guide for 5.5 for the full year.

Elyse Greenspan: My, my second question, right, you guys obviously provide a lot of guidance and disclosure by line, right? It looks like organic growth, right, in brokerage, you're looking, 4.5 in Q1, 5% you're looking for in Q2, and you left the guide for 5.5 for the full year. That does imply a pickup in H2. Doug, I think last we spoke, you were just talking about incremental reinsurance demand as being somewhat of a, of a driver there.

Speaker #6: So that does imply a pickup in the back half, Doug. I think last we spoke, you were just talking about incremental reinsurance demand as being somewhat of a driver there.

Speaker #6: So I mean, I know it's being a little nitpicky relative to half or maybe a point in the back half of the year, but is that still your expectation, that that's what will drive improving organic growth in the second half of the year relative to Q1 and Q2?

Elyse Greenspan: I mean, I know it's being a little nitpicky relative to, you know, half or maybe a point in H2, but is that still your expectation that that's what will drive improving organic growth in H2 relative to Q1 and Q2?

Speaker #5: Yeah. Let me give you a couple of reasons why. I think that we have a really successful new business pipeline right now, and we're seeing that in reinsurance, retail, London specialty, and then really in our kind of captive business right now.

Douglas K. Howell: Yeah. Let me give you a couple reasons why. Is that I think that we have a, you know, a really successful new business pipeline right now, and we're seeing that in reinsurance, retail, but in specialty and then really in our kind of captive business right now. We've also done a good job of getting in raises on our fee accounts, that's a little bit of a tailwind. I think that we're gonna see some pretty strong growth in supplements and contingents for the rest of the year. You've seen the numbers the carriers are posting. That should bode favorably for us. I think there's just in general, we're seeing some pretty good success that's gonna push through a property market.

Speaker #5: We've also done a good job of getting in raises on our fee accounts, so that's a little bit of a tailwind. I think that we're going to see some pretty strong growth in supplements and contingents for the rest of Q1.

Speaker #5: You've seen the numbers of carriers are posting. That should vote favorably for us. And then I think there's just in general, we're seeing some pretty good success that's going to push through a property market.

Speaker #5: Now, if property sells off over the next 60 days in a big way, that's going to be a whole different discussion. But it's in that 5% range.

Douglas K. Howell: Property sells off over the next 60 days in a big way. That's gonna be a whole different discussion. It's in that 5% range. It's at ± a little bit on that. I think we're in great shape.

Speaker #5: So it's plus or minus a little bit. On that, I think we're in great shape.

Speaker #6: And this guidance assumes consistent property declines for the rest of the year—relative property price declines relative to what you saw in Q1?

Elyse Greenspan: This guidance assumes consistent property price declines relative to what you saw in the Q1?

Speaker #5: That's correct.

Douglas K. Howell: That's correct.

Speaker #6: Okay. Thank you.

Elyse Greenspan: Okay. Thank you.

Speaker #3: Thank you. And our next question comes from the line of Dean Christilio from Wolfe Research. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Dean Criscitiello from Wolfe Research. Please proceed with your question.

Speaker #4: Hey, thanks. So just sticking on the organic growth real quick, your full-year estimate for the specialty in U.S. wholesale growth is 6%, which implies sort of a pickup of organic in the back half of the year.

Dean Criscitiello: Hey, thanks. Just sticking on organic growth real quick. Your full year estimate for the specialty in US wholesale growth is 6%, which implies, you know, sort of a pick-up of organic in the back half of the year. I was sort of curious, you know, what are your expectations under, you know, because of the, you know, the pricing environment is obviously not great, sort of your expectations as to why you think it will pick up? Thanks.

Speaker #4: So, it's sort of curious—what are your expectations, given that the pricing environment is obviously not great? So, sort of, your expectations as to why you think it will pick up.

Speaker #4: Thanks.

Speaker #5: All right. So the question is, in our here's the thing. Property is going to take its biggest toll in the second quarter. So I think in the second half of the year, we've got a pretty good view on property right now, at least in the we're a month into it right now.

Douglas K. Howell: All right. The question is, here's the thing, property is gonna take its biggest toll in Q2, I think in H2 of the year. We've got a pretty good view on property right now, at least in the. You know, we're a month into it right now. We'll see what happens in the May and June renewals. We've got a good eye towards that. For the rest of the year, you just don't have that much property stress.

Speaker #5: We'll see what happens in the May and June renewals. We've got a good eye toward that. For the rest of the year, we just don't have that much property stress.

Speaker #4: Got it. And then my follow-up: I noticed in the CFO commentary that the multiples you list for tuck-in acquisitions—the lower end of that range—came down a bit.

Dean Criscitiello: Got it. My follow-up, I noticed in the CFO commentary that the multiples that you list for tuck-in acquisitions, the lower end of that range came down a bit. I was curious maybe if you could add a bit more color of what you're seeing in the market on multiples and kind of why you think that is.

Speaker #4: So, I was curious if you could add a little bit more color on what you're seeing in the market on multiples and kind of why you think that is.

Speaker #5: Yeah, that's just what we're seeing right now. I think the term sheets that we've got in the hopper are recognizing that the multiples are coming down a little bit.

Douglas K. Howell: That's just what we're seeing right now. I think the term sheets that we've got in the hopper are recognizing that the multiples are coming down a little bit. We did put that on page 3 of the CFO commentary and I made mention it in when I was wrapping up on cash. Yes, you're reading that the right way.

Speaker #5: So yes. Yeah. We did put that on page three of the CFO commentary, and I made mention of it when I was wrapping up on cash.

Speaker #5: So yes, you're reading that the right way.

J. Patrick Gallagher Jr.: The why, look at our stock price. Our multiple's down. Pretty simple. We're not here to dilute our shareholders.

Speaker #2: And the why? Look at our stock price. Our multiples down. Pretty simple. We're not here to dilute our shareholders.

J. Patrick Gallagher Jr.: The why, look at our stock price. Our multiple's down. Pretty simple. We're not here to dilute our shareholders.

Operator: Thank you. Our next question comes from the line of David Motemaden from Evercore ISI. Please proceed with your question.

Speaker #3: Thank you. And our next question comes from the line of David Motomadden from Evercore ISR. Please proceed with your question.

Speaker #4: Hey, thanks. Just one question on the— I believe, Pat, you had talked about insurance rates still contributing to growth in the quarter, but just to a lesser extent.

David Motemaden: Hey, thanks. Just one question on the, I believe, Pat, you had talked about insurance rates still contributing to growth in the quarter, but just to a lesser extent. You guys, in the past, have broken out some of the different components of organic between, you know, net new, and then, like price and exposure growth. Just wondering if you could unpack that maybe within this quarter and how you're thinking about that within the outlook for the five and a half for the full year.

Speaker #4: In the past, you guys have broken out some of the different components of organic between net new, and then price and exposure growth.

Speaker #4: So just wondering if you could unpack that, maybe within this quarter, and how you're thinking about that within the outlook for the 5.5 for the full year.

Speaker #5: Listen, I think the way to look at it right now is new business will exceed lost business. Customers will opt in, which will come through as rate and exposure growth.

Douglas K. Howell: Listen, I think the way to look at it right now is new business will exceed lost business. Customers will opt in, which will come through as rate and exposure growth, you know, as exposures grow. Our customers' business. Let's say it's a 6% year. We're probably in a period right now we're gonna get net from rate, 1.5%. When you think about new business forward thrust, we'll probably get 2.5%, and then you're probably gonna get exposure growth in there of another 1.5 points, something like that. I think that might add up. I'm not saying it's a third, a third, a third. I think that rate might be on the lowest end of that growth piece.

Speaker #5: As exposures grow, our customers' business. So let's say it's a 6% year. We're probably in a period right now where we're going to get net, net, net from rate 1.5%.

Speaker #5: When you think about new business forward thrust, we'll probably get 2.5%. And then you're probably going to get exposure growth in there of another 0.5%, something like that.

Speaker #5: I think that might add up. So, I'm not saying it's a third, a third, a third. I think that rate might be on the lowest end of that growth piece.

Speaker #5: So it's going to be net new business wins and then our clients' exposure units growth and our clients' opting in and buying more insurance.

Douglas K. Howell: It's going to be net new business wins, and then our clients' exposure units growth and our clients opting in and buying more insurance. Rate will be what it is.

Speaker #5: And then rate will be what it is.

Speaker #4: Got it. Thanks. And sorry about that. And then just on the property pricing, maybe just thinking about the down seven for this or the down seven RPC, if that were to get down to, let's say, down 10 or 11, how could you help sensitize the organic growth to that sort of RPC movement?

David Motemaden: Got it. Thanks. Sorry about that. Just on the property pricing, maybe just thinking about, you know, the down 7, for this or the down 7 RPC. If that were to get down to, like, let's say, down 10 or 11, how could you help sensitize the organic growth to that sort of RPC movement?

Speaker #5: All right. I'd have to think about that here a second and do the mental math. It might put a point of strain overall for a full year on it, something like that.

Douglas K. Howell: All right. I'd have to think about that here a second and do the mental math. It might put a point of strain overall for a full year on it, something like that. I mean, that might have to go to closer to 12% or 13%. It might almost have to be a double on that. Remember, a lot of our property also is done on a fee, some of our big property schedules, so that mitigates that a little bit. That's why the impact of it, the floor completely falling out of it from what we can see right now, it may be a point for the full year.

Speaker #5: But I mean, that might have to go closer to 12 or 13 percent. It might almost have to be a double on that.

Speaker #5: Remember, a lot of our property also is done on a fee. Some of our big property schedules. So that mitigates that a little bit.

Speaker #5: That's why the impact of the floor completely falling out of it from what we can see right now, it may be a point for the full year.

Speaker #5: I mean, yeah.

Speaker #2: And rates are approaching a pretty low level right now. And in some instances, we're seeing rates approaching 2017 pricing. So I don't think there's—I don't think there's a structural big-time jump further beyond that.

J. Patrick Gallagher Jr.: Rates are approaching a pretty low level right now. In some instances, we're seeing rates approaching 2017 pricing. I don't think there's a structural big time jump further beyond that.

Douglas K. Howell: Yeah.

Speaker #2: Could be.

J. Patrick Gallagher Jr.: Could be.

Speaker #5: And again, just rates are one thing, but remember, our revenues are based on exposures, opting in, growing risk profiles. The casualty is still tough.

Douglas K. Howell: Again, just rates are one thing, but remember our revenues are based on exposures opting in.

J. Patrick Gallagher Jr.: Right

Douglas K. Howell: ... growing risk profile. You know, casualty is still tough. I know your question had about property, but it's not just rate for us. It is highly sensitive also to exposures which are growing right now.

Speaker #5: I know your question was about property, but it's not just rates for us. It is highly sensitive also to exposures, which are growing right now.

Speaker #4: Yep. Nope. Got it. Makes sense. Thank you.

David Motemaden: Yep, nope. Got it. Makes sense. Thank you.

Speaker #3: Thank you. And our next question comes from the line of Meyer Shields with KBW. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Meyer Shields with KBW. Please proceed with your question.

Jin Yong: Hi, this is Jin Yong for Meyer. Thanks for taking my question.

[Analyst] (KBW): Hi, this is Jin Yong for Meyer. Thanks for taking my question.

Speaker #6: Hi, this is Danielle from Meyer. Thanks for taking my question. My first question is on the ENS. You call out the data center and AI-related infrastructure as the fastest-growing part of the ENS market.

Douglas K. Howell: Okay.

Jin Yong: My first question is on the E&S. You call out the data center and AI-related infrastructure as the fastest-growing part of the E&S market. Could you kind of help us size, kind of like what percentage of the submission today is kind of related to that and going forward? Yeah.

[Analyst] (KBW): My first question is on the E&S. You call out the data center and AI-related infrastructure as the fastest-growing part of the E&S market. Could you kind of help us size, kind of like what percentage of the submission today is kind of related to that and going forward? Yeah.

Speaker #6: Could you kind of help us size, kind of, what percentage of the submission today is kind of related to that? And, going forward, yeah.

Douglas K. Howell: All right. As a percentage, it's, you know, it's a very small item. It's not anecdotal, but it is also illustrative. The specialty market comes in five different type of buckets. You got to think about these as a headwind in that vertical, as a tailwind in that vertical, that as these things, you know, come online, they're gonna have to go to the specialty and E&S market in order to get that cover. In terms of what we're doing on it, boy, we've got a terrific practice in that.

Speaker #5: All right. As a percentage, it's a very small item. It's not anecdotal, but it is also illustrative that, especially, the market comes in five different types of buckets.

Speaker #5: So, you got to think about these as a headwind in that, as a tailwind in that vertical, that as these things come online, they're going to have to go to the specialty and E&S market in order to get that cover.

Speaker #5: In terms of what we're doing on it, boy, we've got a terrific practice in that. I think that the way we're coming together, the way we've got a bespoke model that brings the right experts for the various covers that go along with the data center, is pretty remarkable.

Douglas K. Howell: I think that the way we're coming together, the way we've got a bespoke model that brings the right experts for the various covers that go along with the data center is pretty remarkable.

J. Patrick Gallagher Jr.: Let's not get it wrong. I mean, there's great growth opportunities for us across the whole data center effort. As Doug said, the E&S market is responding to that. It takes world markets to complete those. It takes great expertise, which we have. As a percentage of the overall market, this is not earth-shattering.

Speaker #2: And let's not get it wrong. I mean, there's great growth opportunities for us across the whole data center effort. And as Doug said, the ENS market is responding to that.

Speaker #2: It takes world markets to complete those. It takes great expertise, which we have. But as a percentage of the overall market, this is not earth-shattering.

Speaker #6: Okay. Gotcha. Very helpful. My second question is kind of in the Middle East conflict. I think you flagged the significant repricing and more selective capacity deployment in marine war, political violence, terror, etc.

Jin Yong: Okay. Gotcha. Very helpful. My second question is on kind of the Middle East conflict. I think you flagged a significant repricing and more selective capacity deployment in marine war, political violence, terror, et cetera. For Gallagher specifically, is this a net organic tailwind given your London specialty and reinsurance positioning?

[Analyst] (KBW): Okay. Gotcha. Very helpful. My second question is on kind of the Middle East conflict. I think you flagged a significant repricing and more selective capacity deployment in marine war, political violence, terror, et cetera. For Gallagher specifically, is this a net organic tailwind given your London specialty and reinsurance positioning?

Speaker #6: For Gallagher specifically, is this a net organic tailwind given your London specialty and reinsurance positioning?

Speaker #5: Yes, it is. And we've got to be very sensitive about that. First of all, just because war rates are there and the cover is available doesn't mean ships are sailing.

J. Patrick Gallagher Jr.: Yes, it is. We've got to be very sensitive about that. First of all, just because well rates are there and the cover is available doesn't mean ships are sailing. You got a very big caution light on making sure the crews are safe, and shippers are not necessarily going to take the risk. The market is available. It takes a lot of skill and a lot of diligence to put these together. In the end, when they bind, yes, they're a net positive.

Speaker #5: You've got a very big caution light on making sure that crews are safe, and shippers are not necessarily going to take the risk. But the market is available.

Speaker #5: It takes a lot of skill and a lot of diligence to put these together. But in the end, when they bind, yes, they're a net positive.

Speaker #6: Got it. And just one quick follow-up. That's the capacity constraint—clear placement difficulties—did none of your ability capture that, or?

Jin Yong: Got it. Just one quick follow-up. Does the capacity constrain clear, like, placement difficulties that limit your ability to capture that or?

[Analyst] (KBW): Got it. Just one quick follow-up. Does the capacity constrain clear, like, placement difficulties that limit your ability to capture that or?

Speaker #5: No, not at the present time.

J. Patrick Gallagher Jr.: No, not at the present time.

Speaker #6: Okay. Thank you so much.

Jin Yong: Okay. Thank you so much.

[Analyst] (KBW): Okay. Thank you so much.

Speaker #5: Thank you.

J. Patrick Gallagher Jr.: Thank you.

Speaker #3: Thank you. And our next question comes from the line of Aaron NR from Mizuho. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Yaron Kinar from Mizuho Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Yaron Kinar from Mizuho. Please proceed with your question.

Speaker #7: Thank you, Aaron. Good afternoon or good evening. One question for me. The AssuredPartners estimates I see: revenues down a little bit again, and margins up a tad more than that.

Yaron Kinar: Thank you. Good afternoon or good evening. One question for me. The AssuredPartners estimates, I see revenue's down a little bit again, and margins up a tad more than that. Is that the same real estate moves that we had talked about in the 17 March Investor Day, or is there something else driving those?

Speaker #7: Is that the same real estate moves that we had talked about in the March 17th investor meeting, or is there something else driving those?

Speaker #5: All right. Sorry. That's a great question. First of all, remember, those revenue numbers are a midpoint of our range. They do move around a little bit as we put them onto our system, because we get deeper insights to the source of revenues.

Douglas K. Howell: Sorry. That's a great question. First of all, remember, those revenue numbers are a midpoint of our range. They do move around a little bit as we put them onto our system because we get deeper insight to the source of revenues. For instance, last quarter, we're going to have some netting. In the old accounting AssuredPartners, sometimes they put some branches would put a co-broker as an expense versus a contra revenue like we do. That will cause that number to move around. It did move, what, $10 million this quarter on a $800 million dollar estimate, so it's a 1% kind of variance. The reason why this isn't an issue for us is that we purchased cash flow, and that's the great thing about the AssuredPartners acquisition.

Speaker #5: For instance, last quarter we're going to have some netty. And the old accounting and Assured Partners, sometimes they put—some branches would put a co-broker as an expense, versus a contra revenue like we do.

Speaker #5: So that will cause that number to move around. It did move, what, $10 million this quarter on an $800-some-million estimate. So it's a 1% kind of variance.

Speaker #5: The reason why this isn't an issue for us is that we purchased cash flow. And that's the great thing about the AssuredPartners acquisition.

Speaker #5: There was no questions in their cash flow. The gross up of the revenues or the expenses in some branches and the netting in other branches was an irrelevancy to it was irrelevant to us because that's why you see the EBITDA estimates holding right up to what we're talking about.

Douglas K. Howell: There was no questions in their cash flow. The gross up of the revenues or the and expenses in some branches and the netting in other branches was irrelevant to us because that's why you see the EBITDA estimates holding right up to what we're talking about. We purchased that cash flow. We call it EBITDA, and it's delivered right where it be. There's going to be a percentage point bounce around a little bit on the revenue numbers as we completely sort out the netting of co-broker revenues branch by branch. We're gonna, you know, we put a ton of branches up just this last weekend, and I think we're doing a terrific, we're in terrific shape of getting that getting that rolled onto our books in the next 15 months.

Speaker #5: We purchased that cash flow. We call it EBITDA. And it's delivered right where it should be. There's going to be a percentage point bounce around a little bit on the revenue numbers as we completely sort out the netting of co-broker revenues, branch by branch.

Speaker #5: And we're going to be putting a ton of branches up just this last weekend. And I think we're in terrific shape of getting that rolled onto our books in the next 15 months.

Speaker #7: Got it. And those bounces between the line items—that will no longer be the case once the business rolls over into organic, I assume?

Yaron Kinar: Got it. Those bounces are a bit between the line items. That will no longer be the case once the business rolls over into organic, I assume?

Speaker #5: Yeah, that's right. Yeah. I mean, once we have a better insight into whether these numbers are coming to us gross or net. Remember, they're all on individual agency systems.

J. Patrick Gallagher Jr.: We have a better insight into whether these numbers are coming to us gross or net. Remember, they're all on individual agency systems. You know, when you do it on a client-by-client basis, you'll see whether or not there's a co-broker number going through the operating expense. Again, cash flows are the same, it's just the accounting.

Douglas K. Howell: We have a better insight into whether these numbers are coming to us gross or net. Remember, they're all on individual agency systems. You know, when you do it on a client-by-client basis, you'll see whether or not there's a co-broker number going through the operating expense. Again, cash flows are the same, it's just the accounting.

Speaker #5: When you do it on a client-by-client basis, you'll see whether or not there's a co-broker number going through the operating expense. And again, the cash flows are the same.

Speaker #5: It's just the accounting.

Speaker #7: Right. Thank you.

Yaron Kinar: Right. Thank you.

Speaker #5: All right. Thanks.

J. Patrick Gallagher Jr.: All right, thanks. Thanks, Sharon.

Douglas K. Howell: All right, thanks.

Speaker #2: Thanks, Aaron.

J. Patrick Gallagher Jr.: Thanks, Yaron.

Speaker #3: Thank you. And our next question comes from the line of Mark Hughes with Truist Securities. Please proceed with your question.

Operator: Thank you. Our next question comes from the line of Mark Hughes with Truist Securities. Please proceed with your question.

Speaker #8: Yeah. Thanks. Good afternoon.

Mark Hughes: Yeah, thanks. Good afternoon.

Speaker #5: Hey, Mark.

J. Patrick Gallagher Jr.: Hey, Mark.

Mark Hughes: Hello. A number of your competitors or a couple of your competitors have talked about challenges with new business, and sounds like you're seeing things go pretty well. Is there any reason why, say, at this point in the cycle with property down and maybe a little more pressure on casualty perhaps, why would new business be more difficult? Again, just from a kind of a broad cyclical perspective or anything else that might be contributing to that.

Speaker #8: Hello. A number of your competitors or a couple of your competitors have talked about challenges with new business. And it sounds like you're seeing things go pretty well.

Speaker #8: Is there any reason why, say, at this point in the cycle, with property down and maybe a little more pressure on casualty, perhaps, why would new business be more difficult?

Speaker #8: And again, just from a kind of broad cyclical perspective, or anything else that might be contributing to that?

Speaker #5: So, Mark, we look at that closely. And a couple of things you might remember from discussions in the past—we have found, over the last few years, that if we digitize the relationship with a client, it will actually increase our retention by a full point.

J. Patrick Gallagher Jr.: Mark, we look at that closely, and a couple of things you might remember from discussions in the past. We have found over the last few years that if we digitize a relationship with a client, it will actually increase our retention by a full point. That means it takes it from something like 94.5 to 95.5. I would contend that that's pretty close to renewing 100% of eligible. Not measured, not for sure, but darn close. Those same tools are increasing our hit ratio. I can tell you that if we take our Gallagher Drive product out in a prospect call, when I started selling 50 years ago, my hit ratio was about 32%. Before we got our tools going over the last decade, our hit ratio was about 32%, so it was all about getting at-bats.

Speaker #5: Now, that means it takes it from something like 94.5 to 95.5. I would contend that that's pretty close to renewing 100% of eligible. Not measured, not for sure, but darn close.

Speaker #5: Now, those same tools are increasing our hit ratio. So I can tell you that if we take our Gallagher Drive product out on a prospect call—when I started selling 50 years ago, my hit ratio was about 32%.

Speaker #5: Before we got our tools going over the last decade, our hit ratio was about 32%. So it was all about getting at-bats. With our tools now, we know this statistically.

J. Patrick Gallagher Jr.: With our tools now, we know this statistically, we're approaching 45% hit ratios when in fact we use the tools. We have a number of them. It's not just Gallagher Drive. This week at RIMS, we'll be announcing Blueprint, which is all about improving the risk and insurability of our clients, making their profile better. Our reinsurance people have got a workbench product that uses AI to show clients all kinds of different approaches, et cetera, et cetera. These tools, we're spending hundreds of millions of dollars, they're really getting traction. I think that is a differentiator. It's a differentiator, especially when you remember that 90% of the time when we go out to compete, we're competing with somebody substantially smaller than we are. They all walk in and go, Well, we've got AI.

Speaker #5: We're approaching 45% hit ratios when, in fact, we use the tools. And we have a number of them. It's not just Gallagher Drive. This week at RIMS, we'll be announcing Blueprint, which is all about improving the risk and insurability of our clients, making their profile better.

Speaker #5: Our reinsurance people have got a workbench product that uses AI to show clients all kinds of different approaches, etc., etc. These tools—we're spending hundreds of millions of dollars.

Speaker #5: And they're really getting traction. And I think that is a differentiator. It's a differentiator, especially when you remember that 90% of the time, when we go out to compete, we're competing with somebody substantially smaller than we are.

Speaker #5: And they all walk in and go, 'Well, we've got AI. Look at our ChatGPT.' That's not the point. Let us just show you what we do with your risk profile, which we can now categorize numerically.

J. Patrick Gallagher Jr.: Look at our ChatGPT. That's not the point. Let us just show you what we do with your risk profile, which we can now categorize numerically that says, as you exist today, you score on our profile 65. That's not great. But if you work with us on loss control, on improving your risk profile, on the things you need to do, we can take that, we think, to 87. Now, that translates directly to an improved position in the marketplace, better pricing, which frankly today is easier to get, and bigger orders. Our hit ratio is increasing. We've got a lot of at-bats, and I feel really good about our new business.

Speaker #5: It says, "As you exist today, you score on our profile 65." That's not great. But if you work with us on loss control, on improving your risk profile, on the things you need to do, we can take that, we think, to 87.

Speaker #5: Now, that translates directly to an improved position in the marketplace, better pricing—which, frankly, today is easier to get—and bigger orders. So our hit ratio is increasing.

Speaker #5: We've got a lot of at-bats, and I feel really good about our new business.

Mark Hughes: Yeah. Excellent. Is there any kind of structural or cyclical reason why, to, you know, putting your advantages to the side, it might be harder to sign up new business in this kind of environment?

Speaker #8: Excellent. Is there any kind of structural or cyclical reason why, putting your advantages to the side, it might be harder to sign up new business in this kind of environment?

J. Patrick Gallagher Jr.: Oh.

Speaker #8: Since prices are going down, it's harder to tempt people away? Or easier, perhaps, because you can offer a lower pricing?

Mark Hughes: Since prices are going down, it's harder to tempt people away or easier perhaps 'cause you can offer lower pricing.

Speaker #5: No, I think, frankly, it's interesting. I've said this before—the brokerage business is a tough business. You've got to go out and convince somebody to leave somebody they're happy with.

J. Patrick Gallagher Jr.: No, I think it's frankly interesting. I've said before, the brokerage business is a tough business. You've got to go out and convince somebody to leave somebody they're happy with, and that's difficult. It's a very strong relationship business. The reason they're with people is they like them and they trust them. We are trusted advisors. We have to go and make a very strong case for the fact that they benefit their shareholders, most of the time their family, by making a move to Gallagher. We're just getting stronger and stronger at that. It's not easier for sure when there's a softer market 'cause there's less pain.

Speaker #5: And that's difficult. And it's a very strong relationship business. The reason they're with people is they like them, and they trust them. We are trusted advisors.

Speaker #5: So, we have to go and make a very strong case for the fact that they benefit their shareholders—most of the time, their family—by making a move to Gallagher.

Speaker #5: And we're just getting stronger and stronger at that. So it's not easier for sure when there's a softer market because there's less pain. But at the same time, I think we've got confidence in the step of our producers that if they can get a if they can get a shot at something, they've got a pretty darn good chance of writing it.

J. Patrick Gallagher Jr.: At the same time, I think we've got confidence in the step of our producers that if they can get a shot at something, they've got a pretty darn good chance of writing it.

Mark Hughes: Very good. Thank you.

Speaker #5: Thanks, Mark. Operator, I think that's our last question. So let me just make a few comments here to wrap up. Everyone that's on the call, thank you for joining us this afternoon.

J. Patrick Gallagher Jr.: Thanks, Mark. Operator, I think that's our last question. Let me just make a few comments here to wrap up. Everyone that's on the call, thank you for joining us this afternoon. As you can tell, I remain extremely confident where Gallagher is headed. Our strategy is consistent, our execution is strong, and our culture continues to differentiate us. To more than the 72,000 colleagues around the world, thank you. We've got a great quarter. Your talent and dedication are what makes this company great. That is The Gallagher Way. Thank all of you for being on. Have a great evening.

Speaker #5: As you can tell, I remain extremely confident in where Gallagher is headed. Our strategy is consistent, our execution is strong, and our culture continues to differentiate us.

Speaker #5: To more than the 72,000 colleagues around the world, thank you. We've had a great quarter. Your talent and dedication are what make this company great, and that is the Gallagher way.

Speaker #5: Thank all of you for being on, and have a great evening.

Speaker #3: Thank you. And with that, ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. You may now disconnect your lines at this time.

Operator: Thank you. With that, ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. You may now disconnect your lines at this time, and have a wonderful rest of your day.

Q1 2026 Arthur J Gallagher & Co Earnings Call

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