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2015 worlds largest insurance brokers and AJG profile

Steve Marzuke
Steve Marzuke

1) Arthur J. Gallagher & Co. had a banner year for acquisitions in 2014, establishing itself as a global player through several international acquisitions. 2) Gallagher reported brokerage revenue of $3.53 billion for 2014, a 28.7% increase over 2013, allowing it to maintain its position as the fourth largest brokerage worldwide. 3) Gallagher's growth strategy focuses on organic growth as well as aggressive mergers and acquisitions, and it has experience integrating over 500 acquisitions since 1986.

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速 July 20, 2015 Rank Company/address Phone/website Officers 2014 brokerage revenue Percent change Employees Offices 1 Marsh & McLennan Cos. Inc. 1166 Ave. of the Americas New York, NY 10036 212-345-6000 www.mmc.com Daniel S. Glaser, president/CEO $12,966,000,000 5.7% 57,000 585 44.4% 0 8.9% 0 33.5% 13.2% 0.4% (0.3%) 2 Aon P.L.C. 8 Devonshire Square London EC2M 4PL, England 44-207-623-5500 www.aon.com Gregory C. Case, president/CEO $12,019,000,000 2.0% 69,000 500 43.7% 0 12.2% 0 22.2% 21.6% 0.2% 0 3 Willis Group Holdings P.L.C. 51 Lime St. London EC3M 7DQ, England 44-203-124-6000 www.willis.com Dominic Casserley CEO $3,767,000,000 3.7% 18,500 400 50.6% 4.7% 22.6% 2.7% 15.2% 3.2% 0.4% 0.5% 4 Arthur J. Gallagher & Co. The Gallagher Centre 2 Pierce Place Itasca, IL 60143 630-773-3800 www.ajg.com J. Patrick Gallagher Jr., chairman/ president/CEO $3,530,000,000 28.7% 20,240 550 33.4% 9.8% 0 4.2% 14.5% 14.3% 23.7% 0 5 Jardine Lloyd Thompson Group P.L.C. The St. Botolph Building 138 Houndsditch London EC3A 7AW, England 44-207-528-4444 www.jlt.com Geoffrey Howe, chairman; Dominic Burke, group chief executive $1,713,992,4201 6.4%2 5,475 114 36.2% 6.8% 21.8% 2.1% 25.7% 6.8% 0.5% 0 6 BB&T Insurance Holdings Inc. 3605 Glenwood Ave. Suite 201 Raleigh, NC 27612 919-716-9777 www.insurance.bbt.com H. Wade Reece, chairman/CEO $1,713,527,200 8.3% 6,168 118 39.0% 41.3% 0 5.5% 9.9% 0 0.7% 3.7% 7 Brown & Brown Inc. 220 S. Ridgewood Ave. Daytona Beach, FL 32114 386-252-9601 www.bbinsurance.com J. Powell Brown, president/CEO $1,567,459,943 15.6% 7,591 235 54.8% 13.9% 0.9% 5.5% 15.7% 8.7% 0.1% 0.5% 8 Wells Fargo Insurance Services USA Inc. 150 N. Michigan Ave. Suite 3900 Chicago, IL 60601 312-423-2500 wfis.wellsfargo.com Laura Schupbach, head of insurance $1,298,884,000 (3.8%) 5,419 56 39.0% 0.1% 0 13.2% 14.9% 16.5% 0.3% 16.0% 9 Hub International Ltd. 300 N. LaSalle St. 17th Floor Chicago, IL 60654 877-402-6601 www.hubinternational.com Martin P. Hughes, chairman/CEO $1,295,808,000 12.9% 7,838 322 55.2% 5.6% 0 18.0% 20.3% 0.8% 0.2% 0 10 Lockton Cos. L.L.C. 444 W. 47th St. Suite 900 Kansas City, MO 64112 816-960-9000 www.lockton.com John L. Lumelleau, president/CEO; David M. Lockton, executive chairman $1,230,504,0003 10.2%2 5,600 65 64.1% 3.0% 3.5% 0.7% 28.0% 0 0.8% 0 SPECIAL REPORT *Percentage of revenue may not add up to 100% due to rounding. 1 British pound = $1.5586. 2 2013 restated. 3 Fiscal year ending April 30. Source: BI survey WORLDS 10 LARGEST INSURANCE BROKERS Ranked by 2014 brokerage revenue Commercial Wholesale Reinsurance Personallines Employeebenefits Services Investments Other Percentage of revenue*
Reprinted with permission from Business Insurance. 息 2015 Crain Communications Inc. REPRODUCTIONS ARE NOT PERMITTED. 212.210.0707 Visit www.BusinessInsurance.com/section/reprints. #BI15013 E ven for a brokerage known for its strate- gy of growth by acquisition, 2014 was a banner year for Arthur J. Gallagher & Co. Before the year was halfway through, the Itas- ca, Illinois-based broker announced a series of internation- al acquisitions that established it as a global player Toronto-based Noraxis Capital Corp., Perth, Aus- tralia-based Wesfarmers Ltd. and London-based Oval Group of Cos. It acquired three more Australian brokerages before year-end while also acquiring U.S. producers. The series of international acqui- sitions really made Gallagher more of an international broker with a focus on English-speaking countries, said Meyer Shields, managing director at Keefe, Bruyette & Woods Inc. in Baltimore. I couldnt be happier, said Chair- man, President and CEO J. Patrick GallagherJr.2014wasaseminalyear forGallagher,comparabletowhenwe took Gallagher public in 1984. And we have a pipeline of acqui- sitions as long as it has ever been, and now we have a global pipeline, said Mr. Gallagher, who noted Gal- lagher has closed more than 500 acquisitions since 1986 and that no two are alike. The pipeline continued to flow this year, with Gallagher announcing in June that it had acquired Boston-based William Gal- lagher Associates Insur- ance Brokers Inc., which is No. 63 on this years rank- ing of the top 100 brokers of U.S. business. Gallagher reported 2014 brokerage revenue of $3.53 billion, a 28.7% increase over 2013 and a reflection of its acquisi- tions performance. That allowed Gallagher to maintain its place as No. 4 in Business Insurances annual ranking of the worlds largest brokerages. We change a lot every year, but what were trying to do stays the same,Mr.Gallaghersaid.Wefocus on organic growth, we take care of ourcustomers,andwereaggressive about going out and telling people how we can help them. Because so much of their growth is through acquisition, they do an excellent job integrating their acquisitions post-close, said Tim- othy J. Cunningham, managing director with investment banking and consulting firm Optis Partners L.L.C. in Chicago. Mr. Gallagher said the broker works very hard on what we know is a unique culture. Were incredi- bly team-based. He said that 99% of Gallaghers due diligence in consid- eringacquisitionsisspentonculture. I dont see any obstacles to growth, he said. We toil in busi- ness that has about $5 trillion in total premium including all lines of insurance. The biggest challenge to growth is making sure we pick the spots we want to play in, Mr. Gallagher said. That includes careful recruit- ment of the right people and care- ful execution of the right mergers and acquisitions, he said. Opportunities for organic growth are also increasing, Mr. Gallagher said. Wherever you are in the world there are new things coming and going the worlds getting riskier by the day, he said noting that when he entered the business directors and officers liability was a new coverage. Today, risk managers face new concerns, including data manage- ment and cyber security. He added that enterprise risk management continues to be an area in which clients want help. One area in which Gallagher has been particularly active is employee benefits, and Mr. Gallagher said the Patient Protection and Affordable Care Act has created opportunities. I think it was terrible public pol- icy. Its not a good law for Ameri- ca, but its a great thing for Gal- lagher, he said of the federal health care reform law. The small benefits brokers are dead; they just havent laid down yet, Mr. Gallagher added. He said small benefits brokers have great value and bring great value to Gallagher, but they need our expertise, such as the 27 people in Gallaghers compli- ance department, 20 of whom are lawyers. Unlike its three larger rivals, Gal- lagher does not have its own pri- vate health insurance exchange. It does, however, work with Liazon Corp.s Bright Choices Exchange. But not everything positive about Gallaghers performance is meas- ured in dollars and cents, Mr. Gal- lagher said. He noted that this year was the fourth year in a row that the bro- kerage was named one of the worlds most ethical companies by New York-based think tank Ethi- sphere Institute. That is a huge deal for me, Mr. Gallagher said. By Mark A. Hofmann ARTHUR J. GALLAGHER & CO. 2014 gross revenue: $4.63 billion Percent change: 45.5% 2014 brokerage revenue: $3.53 billion Percent change: 28.7% 4 J. Patrick Gallagher Jr., chairman, president and CEO Becausesomuchoftheirgrowthisthroughacquisition,theydoan excellentjobintegratingtheiracquisitionspost-close. Timothy J. Cunningham, Optis Partners L.L.C SPECIALREPORT This reprint brought to you compliments of Arthur J. Gallagher & Co.

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2015 worlds largest insurance brokers and AJG profile

  • 1. 速 July 20, 2015 Rank Company/address Phone/website Officers 2014 brokerage revenue Percent change Employees Offices 1 Marsh & McLennan Cos. Inc. 1166 Ave. of the Americas New York, NY 10036 212-345-6000 www.mmc.com Daniel S. Glaser, president/CEO $12,966,000,000 5.7% 57,000 585 44.4% 0 8.9% 0 33.5% 13.2% 0.4% (0.3%) 2 Aon P.L.C. 8 Devonshire Square London EC2M 4PL, England 44-207-623-5500 www.aon.com Gregory C. Case, president/CEO $12,019,000,000 2.0% 69,000 500 43.7% 0 12.2% 0 22.2% 21.6% 0.2% 0 3 Willis Group Holdings P.L.C. 51 Lime St. London EC3M 7DQ, England 44-203-124-6000 www.willis.com Dominic Casserley CEO $3,767,000,000 3.7% 18,500 400 50.6% 4.7% 22.6% 2.7% 15.2% 3.2% 0.4% 0.5% 4 Arthur J. Gallagher & Co. The Gallagher Centre 2 Pierce Place Itasca, IL 60143 630-773-3800 www.ajg.com J. Patrick Gallagher Jr., chairman/ president/CEO $3,530,000,000 28.7% 20,240 550 33.4% 9.8% 0 4.2% 14.5% 14.3% 23.7% 0 5 Jardine Lloyd Thompson Group P.L.C. The St. Botolph Building 138 Houndsditch London EC3A 7AW, England 44-207-528-4444 www.jlt.com Geoffrey Howe, chairman; Dominic Burke, group chief executive $1,713,992,4201 6.4%2 5,475 114 36.2% 6.8% 21.8% 2.1% 25.7% 6.8% 0.5% 0 6 BB&T Insurance Holdings Inc. 3605 Glenwood Ave. Suite 201 Raleigh, NC 27612 919-716-9777 www.insurance.bbt.com H. Wade Reece, chairman/CEO $1,713,527,200 8.3% 6,168 118 39.0% 41.3% 0 5.5% 9.9% 0 0.7% 3.7% 7 Brown & Brown Inc. 220 S. Ridgewood Ave. Daytona Beach, FL 32114 386-252-9601 www.bbinsurance.com J. Powell Brown, president/CEO $1,567,459,943 15.6% 7,591 235 54.8% 13.9% 0.9% 5.5% 15.7% 8.7% 0.1% 0.5% 8 Wells Fargo Insurance Services USA Inc. 150 N. Michigan Ave. Suite 3900 Chicago, IL 60601 312-423-2500 wfis.wellsfargo.com Laura Schupbach, head of insurance $1,298,884,000 (3.8%) 5,419 56 39.0% 0.1% 0 13.2% 14.9% 16.5% 0.3% 16.0% 9 Hub International Ltd. 300 N. LaSalle St. 17th Floor Chicago, IL 60654 877-402-6601 www.hubinternational.com Martin P. Hughes, chairman/CEO $1,295,808,000 12.9% 7,838 322 55.2% 5.6% 0 18.0% 20.3% 0.8% 0.2% 0 10 Lockton Cos. L.L.C. 444 W. 47th St. Suite 900 Kansas City, MO 64112 816-960-9000 www.lockton.com John L. Lumelleau, president/CEO; David M. Lockton, executive chairman $1,230,504,0003 10.2%2 5,600 65 64.1% 3.0% 3.5% 0.7% 28.0% 0 0.8% 0 SPECIAL REPORT *Percentage of revenue may not add up to 100% due to rounding. 1 British pound = $1.5586. 2 2013 restated. 3 Fiscal year ending April 30. Source: BI survey WORLDS 10 LARGEST INSURANCE BROKERS Ranked by 2014 brokerage revenue Commercial Wholesale Reinsurance Personallines Employeebenefits Services Investments Other Percentage of revenue*
  • 2. Reprinted with permission from Business Insurance. 息 2015 Crain Communications Inc. REPRODUCTIONS ARE NOT PERMITTED. 212.210.0707 Visit www.BusinessInsurance.com/section/reprints. #BI15013 E ven for a brokerage known for its strate- gy of growth by acquisition, 2014 was a banner year for Arthur J. Gallagher & Co. Before the year was halfway through, the Itas- ca, Illinois-based broker announced a series of internation- al acquisitions that established it as a global player Toronto-based Noraxis Capital Corp., Perth, Aus- tralia-based Wesfarmers Ltd. and London-based Oval Group of Cos. It acquired three more Australian brokerages before year-end while also acquiring U.S. producers. The series of international acqui- sitions really made Gallagher more of an international broker with a focus on English-speaking countries, said Meyer Shields, managing director at Keefe, Bruyette & Woods Inc. in Baltimore. I couldnt be happier, said Chair- man, President and CEO J. Patrick GallagherJr.2014wasaseminalyear forGallagher,comparabletowhenwe took Gallagher public in 1984. And we have a pipeline of acqui- sitions as long as it has ever been, and now we have a global pipeline, said Mr. Gallagher, who noted Gal- lagher has closed more than 500 acquisitions since 1986 and that no two are alike. The pipeline continued to flow this year, with Gallagher announcing in June that it had acquired Boston-based William Gal- lagher Associates Insur- ance Brokers Inc., which is No. 63 on this years rank- ing of the top 100 brokers of U.S. business. Gallagher reported 2014 brokerage revenue of $3.53 billion, a 28.7% increase over 2013 and a reflection of its acquisi- tions performance. That allowed Gallagher to maintain its place as No. 4 in Business Insurances annual ranking of the worlds largest brokerages. We change a lot every year, but what were trying to do stays the same,Mr.Gallaghersaid.Wefocus on organic growth, we take care of ourcustomers,andwereaggressive about going out and telling people how we can help them. Because so much of their growth is through acquisition, they do an excellent job integrating their acquisitions post-close, said Tim- othy J. Cunningham, managing director with investment banking and consulting firm Optis Partners L.L.C. in Chicago. Mr. Gallagher said the broker works very hard on what we know is a unique culture. Were incredi- bly team-based. He said that 99% of Gallaghers due diligence in consid- eringacquisitionsisspentonculture. I dont see any obstacles to growth, he said. We toil in busi- ness that has about $5 trillion in total premium including all lines of insurance. The biggest challenge to growth is making sure we pick the spots we want to play in, Mr. Gallagher said. That includes careful recruit- ment of the right people and care- ful execution of the right mergers and acquisitions, he said. Opportunities for organic growth are also increasing, Mr. Gallagher said. Wherever you are in the world there are new things coming and going the worlds getting riskier by the day, he said noting that when he entered the business directors and officers liability was a new coverage. Today, risk managers face new concerns, including data manage- ment and cyber security. He added that enterprise risk management continues to be an area in which clients want help. One area in which Gallagher has been particularly active is employee benefits, and Mr. Gallagher said the Patient Protection and Affordable Care Act has created opportunities. I think it was terrible public pol- icy. Its not a good law for Ameri- ca, but its a great thing for Gal- lagher, he said of the federal health care reform law. The small benefits brokers are dead; they just havent laid down yet, Mr. Gallagher added. He said small benefits brokers have great value and bring great value to Gallagher, but they need our expertise, such as the 27 people in Gallaghers compli- ance department, 20 of whom are lawyers. Unlike its three larger rivals, Gal- lagher does not have its own pri- vate health insurance exchange. It does, however, work with Liazon Corp.s Bright Choices Exchange. But not everything positive about Gallaghers performance is meas- ured in dollars and cents, Mr. Gal- lagher said. He noted that this year was the fourth year in a row that the bro- kerage was named one of the worlds most ethical companies by New York-based think tank Ethi- sphere Institute. That is a huge deal for me, Mr. Gallagher said. By Mark A. Hofmann ARTHUR J. GALLAGHER & CO. 2014 gross revenue: $4.63 billion Percent change: 45.5% 2014 brokerage revenue: $3.53 billion Percent change: 28.7% 4 J. Patrick Gallagher Jr., chairman, president and CEO Becausesomuchoftheirgrowthisthroughacquisition,theydoan excellentjobintegratingtheiracquisitionspost-close. Timothy J. Cunningham, Optis Partners L.L.C SPECIALREPORT This reprint brought to you compliments of Arthur J. Gallagher & Co.