Arthur J. Gallagher

Arthur J. Gallagher & Co
Public
Traded as AJG
Industry Brokerage
Insurance
Founded 1927 Itasca, Illinois
Founder(s) Arthur J. Gallagher
Headquarters Itasca, Illinois, USA
Key people J. Patrick Gallagher,Jr chair,pres,ceo
Walter D.Bay vp, gc,sec
James W.Durkin,Jr. corp.vp,benefit serv pres
Douglas K.Howellcfo,vp
James S.Gault vp,coo brokerage[1]
Products Insurance
Reinsurance
Business Insurance
Revenue $2.5078 bil 2012 Increase19.0%[2]
Net income $195.0 mil 2012 Increase35.3%[2]
Total assets $5,352.3 mil Dec'12Increase19.4%[2]
Employees 13,700 (December 2012)[2]
Divisions Gallagher Benefit Services
Gallagher Bassett Services
Brokerage Services Division
Website

Arthur J. Gallagher & Co. (AJG) is a US-based global insurance brokerage and risk management services firm headquartered at the Gallagher Centre in Itasca, Illinois (a suburb of Chicago). AJG was established in 1927 and since then has grown to become one of the largest insurance brokers in the world with over 300 offices in 16 countries, more than 13,000 employees and revenues exceeding US $2.5 billion.

Stiff competition in a crowded domestic market had put steady downward pressure on property and casualty premiums during the 1990s and dating back to the late 1980s. But Gallagher was still able to secure double-digit growth in all but three years from 1990 through 2000, according to Investor's Business Daily.

Gallagher's size gave it an advantage and helped it gain larger, more profitable clients and outpace the thousands of small brokerages vying for a piece of the market. Those smaller firms also had been buyout targets for Gallagher. The firm scooped up 16 more during 2000. Gallagher had grown its presence to include about 50 U.S. cities.

In July 2011 Arthur J. Gallagher & Co. was ranked fourth in Business Insurance's world's largest brokers list.[3]

A history and the shared values of AJG were documented by Robert E. Gallagher and Alison Kittrell in a book called The Gallagher Way, published in 2005 by Marketing Counsel and iUniverse.

History

Origins of the company date back to 1927 when Arthur J. Gallagher started a brokerage firm in Illinois. The end of World War II brought Gallagher's three sons, John, Jim, and Bob, into the business. The company incorporated in 1950 when the revenues were $175,000. In 1957, Arthur J. Gallagher & Co. reached a high point of its history thus far, winning Beatrice Foods Company as a client and usurping the nation's largest brokerage.

AJG stands by 25 shared values penned by their late Chairman, former President and CEO and son of the company's founder, Robert E. Gallagher, entitled "The Gallagher Way." AJG offers a summer intern program which has spanned more than 40 years and has expanded exponentially since its inception. The company went public 57 years later in 1984. Bob Gallagher died in August 2006 and was replaced as President and CEO by his nephew Patrick 2 months later. The risk management segment of the business continued to bring in earnings as more companies self-insured and hired third parties to pay claims. The consulting end of Gallagher's business helped companies determine whether or not to take on the risk of self-insurance.

Since 1986, Gallagher had acquired 92 companies, primarily brokerages with sales of $5 million to $10 million. The company had been making six to 12 purchases per year, according to a 2001 Crain's Chicago Business article. During 2001, Gallagher made its biggest acquisition to date, purchasing The Galtney Group Inc., a Houston-based property and casualty broker for healthcare providers. The company's largest division brought in $30.4 million in brokerage revenue during 1999

One of its major acquisitions was made in February 2010 when it purchased São Paulo based Brazilian brokerage company Securitas Re, a reinsurance broker; Securitas Re was then renamed Gallagher Brazil.[4] The company has made many acquisitions in recent years nearly 1000+ and is constantly expanding its brokerage offices along with sub offices in US and around the globe.This strategy has been empowering and growing the firms revenues steadily.

Gallagher has its IT operations in India. It has an offshore development center known as Gallagher Technological Services(Bangalore) and along with main development center headquartered in Itasca,Chicago. It also includes a KPO located at Pune named as Gallagher Operations & Support Services Private Limited.

Currently Pramati Technologies, is Managing IT Operations of Gallagher's Offshore Development Center.

International business

Between 2010 and 2012 British operations have grown in importance. In 2012 the UK was the source of 14% of company revenue - $352.3m up 137% versus 2010. The United States contributes 80% of revenue - $2,006.1m up 24%. The other 6% came from Australia, Bermuda and Canada ($161.9m up 59%).

Branches

  • Gallagher Healthcare
  • Gallagher Benefit Services

References

External links

  • AJG website