Results
Summary of Financial Results - Second Quarter
For second quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $144 million of incremental interest income, or approximately 42 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
For second quarter 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $505 million, $12 million and $33 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $130 million, $3 million and ($7) million, respectively, relating to these adjustments.
A detailed reconciliation is shown on page 17.
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Management commentary
“We delivered an excellent second quarter!” said J. Patrick Gallagher, Jr., Chairman and CEO.
3“Our combined Brokerage and Risk Management segments delivered revenue growth of 24%, including organic growth of 6%.
Our growth reflects the strength and diversity of our model, the continued power of our two-pronged growth strategy, and our culture of client-first execution.
Client retention remains strong, new business generation continues to be outstanding and clients continue to seek broader solutions across our platform.
“In an increasingly complex risk environment, client demand for our advice, analytics, market access, specialty expertise and claims advocacy remains robust.
Looking ahead, we remain confident in our ability to build on our momentum and continue creating long-term value for our clients, colleagues and shareholders.”
Results
Summary of Financial Results - Six-Months ended June 30
For the six-month period ended June 30, 2026, the pretax impact of adjustments for the Brokerage, Risk Management, and Corporate Segments totals $936 million , $27 million and $63 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes was $241 million, $7 million and ($27) million, respectively, relating to these adjustments.
A detailed reconciliation is shown on page 19.
Corporate events
* In the second quarter of 2026 and 2025, no shares of Gallagher common stock were issued directly to sellers in connection with tax-free exchange acquisitions.
Results
6* Reported second quarter 2026 compensation expense ratio was 2.8 pts higher than second quarter 2025.
This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.
This ratio was also impacted by higher integration costs, partially offset by lower workforce termination costs and savings from headcount controls.
7** Adjusted second quarter 2026 compensation expense ratio was 2.1 pts higher than second quarter 2025.
This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.
This ratio also benefited from savings from headcount controls.
4* Reported second quarter 2026 operating expense ratio was 2.1 pts higher than second quarter 2025.
This ratio was primarily impacted by higher integration and technology costs.
This ratio was also impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.
5** Adjusted second quarter 2026 operating expense ratio was 0.8 pts higher than second quarter 2025.
This ratio was primarily impacted by lower interest income revenues in the quarter, as second quarter 2025 included interest income earned on cash proceeds associated with the AssuredPartners Financing in December 2024.
This ratio was also impacted by higher technology costs.
* Second quarter 2025 adjusted EBITDAC includes approximately $144 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
The interest income in the prior period, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in second quarter adjusted EBITDAC margin by approximately 3.9%.
** Adjusted EBITDAC for the six-month period ended June 30, 2025 includes approximately $287 million of interest income revenues earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.
8The interest income in the prior year, as well as the seasonality of AssuredPartners and the roll-in of tuck-in acquisitions, unfavorably impacted the year over year change in adjusted EBITDAC margin for the six-month period ended June 30, by approximately 3.4%.
2* Reported and adjusted second quarter 2026 compensation expense ratios were 1.7 pts and 1.6 pts lower, respectively, than second quarter 2025.
Both ratios were primarily impacted by savings related to headcount controls.
1* Reported and adjusted second quarter 2026 operating expense ratios were 0.3 pts and 0.1 pts lower, respectively, than second quarter 2025.
Both ratios were primarily impacted by savings in client-related expenses.
Corporate events
(1) Gallagher incurred transaction-related costs, which include legal, consulting, employee compensation and other professional fees associated with completed, future and terminated acquisitions.
Adjustments primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.
Results
(2) Corporate pretax loss includes a net unrealized foreign exchange remeasurement loss of $(25) million in second quarter 2025.
There was no net impact of unrealized foreign exchange remeasurement in second quarter 2026.
Corporate pretax loss includes a net unrealized foreign exchange remeasurement gain of $6 million in the six-month
period ended June 30, 2026 and a net unrealized foreign exchange remeasurement loss of $(48) million in the six-month period ended June 30, 2025.
(3) Adjustments in the six-month period ended June 30, 2026 include the write-down of a clean energy-related investment.
Corporate events
(5) Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.
Interest, banking costs and debt - At June 30, 2026, Gallagher had $9,550 million of borrowings from public debt, $2,683 million of borrowings from private placements and $1,365 million of borrowings under its line of credit facility.
In addition, Gallagher had $134 million outstanding under a revolving loan facility that provides funding for premium finance receivables, which are fully collateralized by the underlying premiums held by insurance carriers, and as such are excluded from its debt covenant computations, as applicable.
Outlook
Clean energy-related - For 2026, this consists of operating results related to Gallagher’s investments in new clean energy projects, primarily fusion and carbon sequestration projects.
Results
Corporate - Consists of overhead allocations mostly related to corporate staff compensation, other corporate level activities, and net unrealized foreign exchange remeasurement.
In addition, it includes the tax expense related to the partial taxation of foreign earnings, nondeductible executive compensation and entertainment expenses, the tax benefit from the vesting of employee equity awards, as well as other permanent or discrete tax items not reflected in the provision for income taxes in the Brokerage and Risk Management segments.
Income Taxes - Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates.
Gallagher’s consolidated effective tax rates for the quarters ended June 30, 2026 and 2025 were 21.7% and 22.3% , respectively.
Corporate events
AssuredPartners - In fourth quarter 2024 and first quarter 2025, we raised a total of approximately $14 billion of cash via a follow-on common stock offering and senior notes issuance to fund the AssuredPartners acquisition (collectively, the AssuredPartners Financing), which was completed in third quarter 2025 for approximately $14 billion.
Capital return
Share Repurchases - In the second quarter of 2026, Gallagher repurchased approximately 0.9 million shares of its common stock for approximately $170 million.
Corporate events
Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of the Willis Towers Watson treaty reinsurance brokerage operations, Buck, Cadence Insurance, Eastern Insurance Group, My Plan Manager, Woodruff Sawyer and AssuredPartners), outside the scope of the usual tuck-in strategy, not expected to occur on an ongoing basis in the future once Gallagher fully assimilates the applicable acquisition.
These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into its IT related systems.
Transaction-related costs, which are associated with completed, future and terminated acquisitions.
Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively.
These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.
Results
Effective income tax rate impact, which levelized the prior year for the change in current year tax rates.
Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment.
Legal and tax related, which represents the impact of adjustments in second quarter 2026 related to costs associated with legal and tax matters.
B enefit plan related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30,
97 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.