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Gallagher says property pricing reset offset by new business
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Business Insurance
Gallagher says property pricing reset offset by new businessArthur J. Gallagher & Co. reported second-quarter revenue growth of nearly 25% as strong new business, client retention and the integration of AssuredPartners offset a softening property insurance market.
“This is a property reset,” Chairman and CEO J. Patrick Gallagher Jr. said.
Gallagher reported $3.96 billion in second-quarter revenue, a 24.4% increase from a year earlier, driven by its acquisition of AssuredPartners and 6% organic growth.
Mr. Gallagher said property renewal premiums fell 10% in the quarter, while casualty lines rose 3% overall.
“Pricing is coming down,” Mr. Gallagher said, adding that sellers are recognizing that “the days of 15, 16, and if you got a platform, maybe 17 times EBITDAC are over.”