AJ Gallagher

Need to Know

The CEO also heralded the group’s “best full-year brokerage segment organic performance in decades”, with a figure of 9.7%.

Gallagher’s adjusted earnings per share climbed 18.5% to $1.54, beating analysts’ consensus of $1.49 earnings per share in Q4.

Aviation insurers are still facing uncertainty moving into 2023, with a slew of legal cases, and large losses from the previous quarters looming above them.

Claims were widespread in the class of business during 2022, with almost all areas warranted claimed against.

Although 2022 was on balance, a good year, macro-economic issues such as a slowing economy, falling employment, and loss cost reversion could create an overhang for 2023.

The executive said many reinsurers have secured the pricing and terms necessary to cover their cost of capital.

Political violence renewals have been especially demanding, the broker said.

The broker said a dearth of IPOs had created a “buoyant environment”, with both start-ups and incumbents competing.

Inflation, rising reinsurance costs and rebounding shipping activity all pose challenges for the market.

With a cash consideration of $170mn and approximately $22.5mn of potential earnout obligation, the M&T deal is likely Gallagher’s largest since Willis Re.

The broker said rate rises on IG reinsurance could be up to 10% following the impact of Hurricane Ian.