Arthur J. Gallagher & Co. Announces Second Quarter 2026 Financial Results

Arthur J. Gallagher & Co. Announces Second Quarter 2026 Financial Results 07/30/2026 , /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended June 30, 2026. Management will host a webcast conference call to discuss these results on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to the call, and for printer-friendly formats of this release, the "CFO Commentary" and "Supplemental Quarterly Data," which may also be referenced during the call, please visit ajg.com/IR. These documents contain both GAAP and non-GAAP measures. Investors and other users of this information should read carefully the section entitled "Information Regarding Non-GAAP Measures" beginning on page 9. Summary of Financial Results - Second Quarter Revenues Before Reimbursements Net Earnings (Loss) EBITDAC Diluted Net Earnings (Loss) Per Share Segment 2nd Q 26 2nd Q 25 2nd Q 26 2nd Q 25 2nd Q 26 2nd Q 25 2nd Q 26 2nd Q 25 (in millions) (in millions) (in millions) Brokerage, as reported $ 3,502 $ 2,787 $ 450 $ 510 $ 948 $ 892 $ 1.74 $ 1.95 Net (gains) on divestitures (8) (6) (6) (5) (8) (6) (0.02) (0.02) Acquisition integration — — 84 30 113 41 0.33 0.12 Workforce and lease termination — — 30 28 40 37 0.11 0.11 Acquisition related adjustments — — 49 25 70 50 0.19 0.09 Amortization of intangible assets — — 218 130 — — 0.84 0.50 Levelized foreign currency translation – 1 — (7) — (9) — (0.03) Brokerage, as adjusted 3,494 2,782 825 711 1,163 1,005 3.19 2.72 Risk Management, as reported 453 392 57 43 96 75 0.22 0.16 Acquisition integration — — 1 1 1 2 – 0.01 Workforce and lease termination — — 1 3 2 4 0.01 0.01 Acquisition related adjustments — — 2 1 2 1 0.01 — Amortization of intangible assets — — 5 5 — — 0.02 0.02 Levelized foreign currency translation — 5 — 1 — 1 — — Risk Management, as adjusted 453 397 66 54 101 83 0.26 0.20 Corporate, as reported — — (183) (185) (98) (111) (0.71) (0.71) Transaction-related costs — — 10 24 12 29 0.04 0.09 Legal, tax and benefit plan related — — 16 — 21 — 0.06 — Corporate, as adjusted — — (157) (161) (65) (82) (0.61) (0.62) Total Company, as reported $ 3,955 $ 3,179 $ 324 $ 368 $ 946 $ 856 $ 1.25 $ 1.40 Total Company, as adjusted $ 3,947 $ 3,179 $ 734 $ 604 $ 1,199 $ 1,006 $ 2.84 $ 2.30 Total Brokerage & Risk Management, as reported $ 3,955 $ 3,179 $ 507 $ 553 $ 1,044 $ 967 $ 1.96 $ 2.11 Total Brokerage & Risk Management, as adjusted $ 3,947 $ 3,179 $ 891 $ 765 $ 1,264 $ 1,088 $ 3.45 $ 2.92 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. (1 of 20) "We delivered an excellent second quarter!" said J. Patrick Gallagher, Jr., Chairman and CEO. "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." Summary of Financial Results - Six-Months ended June 30 Revenues Before Reimbursements Net Earnings (Loss) EBITDAC Diluted Net Earnings (Loss) Per Share Segment 6 Mths 26 6 Mths 25 6 Mths 26 6 Mths 25 6 Mths 26 6 Mths 25 6 Mths 26 6 Mths 25 (in millions) (in millions) (in millions) Brokerage, as reported $ 7,795 $ 6,101 $ 1,363 $ 1,326 $ 2,510 $ 2,243 $ 5.25 $ 5.08 Net (gains) on divestitures (15) (12) (11) (9) (15) (12) (0.04) (0.04) Acquisition integration — — 149 63 200 85 0.57 0.24 Workforce and lease termination — — 50 42 67 55 0.19 0.16 Acquisition related adjustments — — 88 50 120 80 0.34 0.19 Amortization of intangible assets — — 419 282 — — 1.62 1.09 Effective income tax rate impact — — — 1 — — — — Levelized foreign currency translation — 58 — 6 — 10 — 0.03 Brokerage, as adjusted 7,780 6,147 2,058 1,761 2,882 2,461 7.93 6.75 Risk Management, as reported 881 766 107 84 182 147 0.41 0.32 Acquisition integration — — 2 2 2 4 0.01 0.01 Workforce and lease termination — — 2 6 3 7 0.01 0.02 Acquisition related adjustments — — 6 1 8 1 0.02 — Amortization of intangible assets — — 10 9 — — 0.04 0.04 Levelized foreign currency translation — 12 — 2 — 2 — 0.01 Risk Management, as adjusted 881 778 127 104 195 161 0.49 0.40 Corporate, as reported (5) — (323) (333) (189) (233) (1.25) (1.28) Transaction-related costs — — 16 44 19 52 0.06 0.17 Legal, tax and benefit plan related — — 17 — 39 — 0.07 — Clean energy-related 5 — 3 — 5 — 0.01 — Corporate, as adjusted — — (287) (289) (126) (181) (1.11) (1.11) Total Company, as reported $ 8,671 $ 6,867 $ 1,147 $ 1,077 $ 2,503 $ 2,157 $ 4.41 $ 4.12 Total Company, as adjusted $ 8,661 $ 6,925 $ 1,898 $ 1,576 $ 2,951 $ 2,441 $ 7.31 $ 6.04 Total Brokerage & Risk Management, as reported $ 8,676 $ 6,867 $ 1,470 $ 1,410 $ 2,692 $ 2,390 $ 5.66 $ 5.40 Total Brokerage & Risk Management, as adjusted $ 8,661 $ 6,925 $ 2,185 $ 1,865 $ 3,077 $ 2,622 $ 8.42 $ 7.15 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. (2 of 20) Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. Organic Revenues (Non-GAAP) 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Base Commissions and Fees Commissions and fees, as reported $ 3,180 $ 2,387 $ 7,095 $ 5,256 Less commissions and fees from acquisitions, divested operations and other (775) (80) (1,712) (144) Levelized foreign currency translation — 1 — 51 Organic base commissions and fees $ 2,405 $ 2,306 $ 5,383 $ 5,163 Organic change in base commissions and fees 4 % 4 % Supplemental Revenues Supplemental revenues, as reported $ 141 $ 103 $ 321 $ 217 Less supplemental revenues from acquisitions, divested operations and other (17) — (63) — Levelized foreign currency translation — — — 2 Organic supplemental revenues $ 124 $ 103 $ 258 $ 219 Organic change in supplemental revenues 20 % 18 % Contingent Revenues Contingent revenues, as reported $ 91 $ 73 $ 206 $ 166 Less contingent revenues from acquisitions, divested operations and other (24) — (43) — Levelized foreign currency translation — — — 1 Organic contingent revenues $ 67 $ 73 $ 163 $ 167 Organic change in contingent revenues (8 %) (2 %) Total reported commissions, fees, supplemental revenues and contingent revenues $ 3,412 $ 2,563 $ 7,622 $ 5,639 Less commissions, fees, supplemental revenues and contingent revenues from acquisitions, divested operations and other (816) (80) (1,818) (144) Levelized foreign currency translation — 1 — 54 Total organic commissions, fees, supplemental revenues and contingent revenues $ 2,596 $ 2,482 $ 5,804 $ 5,549 Total organic change 5 % 5 % Acquisition Activity 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Number of acquisitions closed * 6 9 14 19 Estimated annualized revenues acquired (in millions) $ 58 $ 291 $ 107 $ 354 * 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. (3 of 20) Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions): See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. Compensation Expense and Ratios 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Compensation expense, as reported $ 2,017 $ 1,526 $ 4,228 $ 3,143 Acquisition integration (53) (20) (90) (48) Workforce and lease termination related charges (29) (36) (53) (52) Acquisition related adjustments (70) (50) (120) (80) Levelized foreign currency translation — 8 — 37 Compensation expense, as adjusted $ 1,865 $ 1,428 $ 3,965 $ 3,000 Reported compensation expense ratios using reported revenues on pages 1 and 2 * 57.6 % 54.8 % 54.2 % 51.5 % Adjusted compensation expense ratios using adjusted revenues on pages 1 and 2 ** 53.4 % 51.3 % 51.0 % 48.8 % * 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. ** 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. Operating Expense and Ratios 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Operating expense, as reported $ 537 $ 369 $ 1,057 $ 715 Acquisition integration (60) (21) (110) (37) Workforce and lease termination related charges (11) (1) (14) (3) Levelized foreign currency translation — 2 — 11 Operating expense, as adjusted $ 466 $ 349 $ 933 $ 686 Reported operating expense ratios using reported revenues on pages 1 and 2 * 15.3 % 13.2 % 13.6 % 11.7 % Adjusted operating expense ratios using adjusted revenues on pages 1 and 2 ** 13.3 % 12.5 % 12.0 % 11.2 % * 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. ** 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. (4 of 20) Brokerage Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions): See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. Net Earnings to Adjusted EBITDAC (Non-GAAP) 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Net earnings, as reported $ 450 $ 510 $ 1,363 $ 1,326 Provision for income taxes 154 176 467 459 Depreciation 45 38 94 71 Amortization 294 174 565 378 Change in estimated acquisition earnout payables 5 (6) 21 9 EBITDAC 948 892 2,510 2,243 Net (gains) on divestitures (8) (6) (15) (12) Acquisition integration 113 41 200 85 Workforce and lease termination related charges 40 37 67 55 Acquisition related adjustments 70 50 120 80 Levelized foreign currency translation — (9) — 10 EBITDAC, as adjusted $ 1,163 $ 1,005 $ 2,882 $ 2,461 Net earnings margin, as reported using reported revenues on pages 1 and 2 12.9 % 18.3 % 17.5 % 21.7 % EBITDAC margin, as adjusted using adjusted revenues on pages 1 and 2 * 33.3 % 36.1 % ** 37.0 % 40.0 % * 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. The 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%. Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (dollars in millions): See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. Organic Revenues (Non-GAAP) 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Fees $ 438 $ 382 $ 853 $ 745 International performance bonus fees 7 1 12 3 Fees as reported 445 383 865 748 Less fees from acquisitions, divestitures and other (11) (1) (24) (2) Levelized foreign currency translation — 5 — 12 Organic fees $ 434 $ 387 $ 841 $ 758 Organic change in fees 12 % 11 % Acquisition Activity 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Number of acquisitions closed 1 — 2 1 Estimated annualized revenues acquired (in millions) $ 5 $ — $ 15 $ 38 (5 of 20) Risk Management Segment Reported GAAP to Adjusted Non-GAAP Reconciliations (continued) (dollars in millions): See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. Compensation Expense and Ratios 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Compensation expense, as reported $ 274 $ 244 $ 538 $ 475 Acquisition integration — (1) — (2) Workforce and lease termination related charges (2) (3) (3) (6) Acquisition related adjustments (2) (1) (8) (1) Levelized foreign currency translation — 4 — 9 Compensation expense, as adjusted $ 270 $ 243 $ 527 $ 475 Reported compensation expense ratios using reported revenues (before reimbursements) on pages 1 and 2 * 60.5 % 62.2 % 61.1 % 62.0 % Adjusted compensation expense ratios using adjusted revenues (before reimbursements) on pages 1 and 2 * 59.6 % 61.2 % 59.8 % 61.1 % * 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. Operating Expense and Ratios 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Operating expense, as reported $ 83 $ 73 $ 161 $ 144 Acquisition integration (1) (1) (2) (2) Workforce and lease termination related charges — (1) — (1) Levelized foreign currency translation — — — 1 Operating expense, as adjusted $ 82 $ 71 $ 159 $ 142 Reported operating expense ratios using reported revenues (before reimbursements) on pages 1 and 2 * 18.3 % 18.6 % 18.3 % 18.8 % Adjusted operating expense ratios using adjusted revenues (before reimbursements) on pages 1 and 2 * 18.1 % 18.2 % 18.1 % 18.2 % * 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. Net Earnings to Adjusted EBITDAC (Non-GAAP) 2nd Q 26 2nd Q 25 6 Mths 26 6 Mths 25 Net earnings, as reported $ 57 $ 43 $ 107 $ 84 Provision for income taxes 21 15 39 30 Depreciation 10 10 20 20 Amortization 7 6 14 12 Change in estimated acquisition earnout payables 1 1 2 1 EBITDAC 96 75 182 147 Acquisition integration 1 2 2 4 Workforce and lease termination related charges 2 4 3 7 Acquisition related adjustments 2 1 8 1 Levelized foreign currency translation — 1 — 2 EBITDAC, as adjusted $ 101 $ 83 $ 195 $ 161 Net earnings margin, as reported using reported revenues (before reimbursements) on pages 1 and 2 12.6 % 11.0 % 12.2 % 11.0 % EBITDAC margin, as adjusted using adjusted revenues (before reimbursements) on pages 1 and 2 22.3 % 20.9 % 22.1 % 20.7 % (6 of 20) Corporate Segment Reported GAAP to Adjusted Non-GAAP Reconciliation Information (dollars in millions): See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. 2nd Quarter 2026 2025 Pretax Loss Income Tax Benefit Net Earnings (Loss) Attributable to Controlling Interests Pretax Loss Income Tax Benefit Net Earnings (Loss) Attributable to Controlling Interests Components of Corporate Segment, as reported Interest and banking costs $ (169) $ 44 $ (125) $ (159) $ 41 $ (118) Clean energy-related (2) 1 (1) (2) — (2) Acquisition costs (1) (18) 3 (15) (34) 6 (28) Corporate (2) (79) 37 (42) (76) 39 (37) Reported 2nd quarter (268) 85 (183) (271) 86 (185) Adjustments Transaction-related costs (1) 12 (2) 10 29 (5) 24 Legal and tax related (4) 13 (3) 10 — — — Benefit plan related (5) 8 (2) 6 — — — Components of Corporate Segment, as adjusted Interest and banking costs (169) 44 (125) (159) 41 (118) Clean energy-related (2) 1 (1) (2) — (2) Acquisition costs (6) 1 (5) (5) 1 (4) Corporate (2) (58) 32 (26) (76) 39 (37) Adjusted 2nd quarter $ (235) $ 78 $ (157) $ (242) $ 81 $ (161) Six Months Components of Corporate Segment, as reported Interest and banking costs $ (327) $ 85 $ (242) $ (318) $ 83 $ (235) Clean energy-related (9) 3 (6) (4) 1 (3) Acquisition costs (1) (28) 5 (23) (60) 9 (51) Corporate (2) (155) 103 (52) (171) 127 (44) Reported six months (519) 196 (323) (553) 220 (333) Adjustments Clean energy-related (3) 5 (2) 3 — — — Transaction-related costs (1) 19 (3) 16 52 (8) 44 Legal and tax related (4) 31 (20) 11 — — — Benefit plan related (5) 8 (2) 6 — — — Components of Corporate Segment, as adjusted Interest and banking costs (327) 85 (242) (318) 83 (235) Clean energy-related (4) 1 (3) (4) 1 (3) Acquisition costs (9) 2 (7) (8) 1 (7) Corporate (2) (116) 81 (35) (171) 127 (44) Adjusted six months  $ (456) $ 169 $ (287) $ (501) $ 212 $ (289) (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. (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. (4) Adjustments in second quarter 2026 and the six-month period ended June 30, 2026 include costs associated with legal and tax matters. (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. (7 of 20) 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. 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. Acquisition costs - Consists mostly of external professional fees and other due diligence costs related to acquisitions. On occasion, Gallagher enters into forward currency hedges for the purchase price of committed, but not yet funded, acquisitions with funding requirements in currencies other than the U.S. dollar. The gains or losses, if any, associated with these hedge transactions are also included in acquisition costs. 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. 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. Share Repurchases - In the second quarter of 2026, Gallagher repurchased approximately 0.9 million shares of its common stock for approximately $170 million. Webcast Conference Call - Gallagher will host a webcast conference call on Thursday, July 30, 2026 at 5:15 p.m. ET/4:15 p.m. CT. To listen to this call, please go to Arthur J. Gallagher & Co. - Events & Presentations (ajg.com). The call will be available for replay at such website for at least 90 days. About Arthur J. Gallagher & Co. Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants. (8 of 20) Information Concerning Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "will," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, anticipated future results or performance of any segment or Gallagher as a whole; acquisition rollover revenues; statements regarding changes in its expenses in the next several quarters; future capital structure changes, including debt levels from time to time; the impact of foreign currency on its results; integration costs; workforce and lease termination costs; amortization of intangibles; depreciation; change in estimated earnout payables; effective tax rate; earnings from continuing operations attributable to noncontrolling interests; the premium rate environment and the state of insurance markets; and the economic environment. Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include global economic and geopolitical events, including, among others, fluctuations in interest and inflation rates; protectionism such as tariffs and trade disruptions; a recession or economic downturn; a U.S. government shutdown; political instability, such as global armed conflicts; its actual acquisition opportunities, including closing risks related to pending acquisitions; risks with respect to larger acquisitions such as AssuredPartners, the largest acquisition in its history, including risks related to its ability to successfully integrate operations and the possibility that its assumptions may be inaccurate resulting in unforeseen obligations or liabilities and failure to realize expected benefits of such acquisitions; damage to its reputation due to its failure to uphold its culture or negative perceptions or publicity, including as a result of amplifying effects that the Internet and social media may have on such perceptions; reputational issues related to its sustainability-related activities, including potential backlash against such activities, and compliance with increasingly complex climate- and other sustainability-related regulations, such as risks related to "greenwashing" and "greenhushing"; cybersecurity-related risks; its ability to apply technology, data analytics and artificial intelligence effectively to its business and potential increased costs resulting from such activities; risks associated with the use of artificial intelligence in its business operations, including regulatory, data privacy, cybersecurity, errors and omissions, intellectual property and competition risks; risks related to "AI-washing"; heightened competition for talent and increased compensation costs; disasters or other business interruptions, including with respect to its operations in India; risks related to its international operations, such as those related to regulatory, tax, sustainability, sanctions and anti-corruption compliance and increased scrutiny of the use of off-shore centers of excellence such as those we operate in India and elsewhere; changes to data privacy and protection laws and regulations; foreign exchange rates; changes in accounting standards; changes in premium rates and in insurance markets generally, including the impact of large natural or man-made events; tax, environmental or other compliance risks related to its legacy clean energy investments; its inability to receive dividends or other distributions from subsidiaries; and changes in the insurance brokerage industry's competitive landscape. Please refer to Gallagher's filings with the Securities and Exchange Commission, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and its subsequently filed Quarterly Reports on Form 10-Q for a more detailed discussion of these and other factors that could impact its forward-looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website. Information Regarding Non-GAAP Measures In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition or because they provide investors with measures that its chief operating decision maker uses when reviewing Gallagher's performance. See further below for definitions and additional reasons each of these measures is useful to investors. Gallagher's industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in its most recent Proxy Statement, Gallagher makes determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC. (9 of 20) Adjusted Non-GAAP presentation - Gallagher believes that the adjusted non-GAAP presentations of the current and prior period information presented in this earnings release provide stockholders and other interested persons with useful information regarding certain financial metrics of Gallagher that may assist such persons in analyzing Gallagher's operating results as they develop a future earnings outlook for Gallagher. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period. See pages 17, 18, 19 and 20 for a reconciliation of the adjustments made to income taxes. Adjusted measures - Revenues (for the Brokerage segment), revenues before reimbursements (for the Risk Management segment), net earnings, compensation expense and operating expense, respectively, each adjusted to exclude the following, as applicable: Net gains (losses) on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.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.Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time we may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date.Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through Gallagher's merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year.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.Benefit 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. Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues. (10 of 20) Non-GAAP Earnings Measures EBITDAC and EBITDAC margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the Brokerage segment) and revenues before reimbursements (for the Risk Management segment). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance for the overall business and provide a meaningful way to measure its financial performance on an ongoing basis.EBITDAC, as Adjusted and EBITDAC Margin, as Adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, and the period-over-period impact of foreign currency translation, as applicable, (and for the Corporate segment, the clean energy related adjustments described above) and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the Brokerage and Risk Management segments provide a meaningful representation of Gallagher's operating performance and are also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability.EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted average shares outstanding. This measure provides a meaningful representation of Gallagher's operating performance (and as such should not be used as a measure of Gallagher's liquidity), and for the overall business is also presented to improve the comparability of its results between periods by eliminating the impact of the items that have a high degree of variability. Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the Brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues, excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations, which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products, in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of Gallagher in both the current and prior period. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation; revenue from certain large life product sales within Gallagher's Executive Life and Benefits practice group (which are typically large singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the Risk Management segment, organic revenue consists of fee revenues excluding the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each period presented. In order to improve the comparability of Gallagher's results between periods, we further exclude the period-over-period impact of foreign currency translation. These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this non-GAAP measure allows readers of its financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner. Reconciliation of Non-GAAP Information Presented to GAAP Measures - This press release includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 5 and 6), for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on pages 1 and 2), for organic revenue measures (on pages 3 and 5, respectively, for the Brokerage and Risk Management segments), for adjusted compensation and operating expenses and adjusted EBITDAC margin (on pages 4, 5 and 6 respectively, for the Brokerage and Risk Management segments). (11 of 20) Arthur J. Gallagher & Co. Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30, (Unaudited - in millions except per share, percentage and workforce data) Brokerage Segment 2nd Q Ended June 30, 2026 2nd Q Ended June 30, 2025 6 Mths Ended June 30, 2026 6 Mths Ended June 30, 2025 Commissions $ 2,442 $ 1,808 $ 5,565 $ 4,057 Fees 738 579 1,530 1,199 Supplemental revenues 141 103 321 217 Contingent revenues 91 73 206 166 Interest income, premium finance revenues and other income 90 224 173 462 Total revenues 3,502 2,787 7,795 6,101 Compensation 2,017 1,526 4,228 3,143 Operating 537 369 1,057 715 Depreciation 45 38 94 71 Amortization 294 174 565 378 Change in estimated acquisition earnout payables 5 (6) 21 9 Expenses 2,898 2,101 5,965 4,316 Earnings before income taxes 604 686 1,830 1,785 Provision for income taxes 154 176 467 459 Net earnings 450 510 1,363 1,326 Net earnings attributable to noncontrolling interests — — 1 5 Net earnings attributable to controlling interests $ 450 $ 510 $ 1,362 $ 1,321 EBITDAC Net earnings $ 450 $ 510 $ 1,363 $ 1,326 Provision for income taxes 154 176 467 459 Depreciation 45 38 94 71 Amortization 294 174 565 378 Change in estimated acquisition earnout payables 5 (6) 21 9 EBITDAC $ 948 $ 892 $ 2,510 $ 2,243 See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. (12 of 20) Arthur J. Gallagher & Co. Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30, (Unaudited - in millions except per share, percentage and workforce data) Risk Management Segment 2nd Q Ended June 30, 2026 2nd Q Ended June 30, 2025 6 Mths Ended June 30, 2026 6 Mths Ended June 30, 2025 Fees $ 445 $ 383 $ 865 $ 748 Interest income and other income 8 9 16 18 Revenues before reimbursements 453 392 881 766 Reimbursements 48 43 90 82 Total revenues 501 435 971 848 Compensation 274 244 538 475 Operating 83 73 161 144 Reimbursements 48 43 90 82 Depreciation 10 10 20 20 Amortization 7 6 14 12 Change in estimated acquisition earnout payables 1 1 2 1 Expenses 423 377 825 734 Earnings before income taxes 78 58 146 114 Provision for income taxes 21 15 39 30 Net earnings 57 43 107 84 Net earnings attributable to noncontrolling interests — — — — Net earnings attributable to controlling interests $ 57 $ 43 $ 107 $ 84 EBITDAC Net earnings $ 57 $ 43 $ 107 $ 84 Provision for income taxes 21 15 39 30 Depreciation 10 10 20 20 Amortization 7 6 14 12 Change in estimated acquisition earnout payables 1 1 2 1 EBITDAC $ 96 $ 75 $ 182 $ 147 See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. (13 of 20) Arthur J. Gallagher & Co. Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30, (Unaudited - in millions except share and per share data) Corporate Segment 2nd Q Ended June 30, 2026 2nd Q Ended June 30, 2025 6 Mths Ended June 30, 2026 6 Mths Ended June 30, 2025 Other loss $ — $ — $ (5) $ — Total revenues — — (5) — Compensation 39 34 80 83 Operating 59 77 104 150 Interest 168 158 326 316 Depreciation 2 2 4 4 Expenses 268 271 514 553 Loss before income taxes (268) (271) (519) (553) Benefit for income taxes (85) (86) (196) (220) Net loss (183) (185) (323) (333) Net loss attributable to noncontrolling interests — — — — Net loss attributable to controlling interests $ (183) $ (185) $ (323) $ (333) EBITDAC Net loss $ (183) $ (185) $ (323) $ (333) Benefit for income taxes (85) (86) (196) (220) Interest 168 158 326 316 Depreciation 2 2 4 4 EBITDAC $ (98) $ (111) $ (189) $ (233) See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. (14 of 20) Arthur J. Gallagher & Co. Reported Statement of Earnings and EBITDAC - 2nd Quarter June 30, (Unaudited - in millions except share and per share data) Total Company 2nd Q Ended June 30, 2026 2nd Q Ended June 30, 2025 6 Mths Ended June 30, 2026 6 Mths Ended June 30, 2025 Commissions $ 2,442 $ 1,808 $ 5,565 $ 4,057 Fees 1,183 962 2,395 1,947 Supplemental revenues 141 103 321 217 Contingent revenues 91 73 206 166 Interest income, premium finance revenues and other income 98 233 184 480 Revenues before reimbursements 3,955 3,179 8,671 6,867 Reimbursements 48 43 90 82 Total revenues 4,003 3,222 8,761 6,949 Compensation 2,330 1,804 4,846 3,701 Operating 679 519 1,322 1,009 Reimbursements 48 43 90 82 Interest 168 158 326 316 Depreciation 57 50 118 95 Amortization 301 180 579 390 Change in estimated acquisition earnout payables 6 (5) 23 10 Expenses 3,589 2,749 7,304 5,603 Earnings before income taxes 414 473 1,457 1,346 Provision for income taxes 90 105 310 269 Net earnings 324 368 1,147 1,077 Net earnings attributable to noncontrolling interests — — 1 5 Net earnings attributable to controlling interests $ 324 $ 368 $ 1,146 $ 1,072 Diluted net earnings per share $ 1.25 $ 1.40 $ 4.41 $ 4.12 Dividends declared per share $ 0.70 $ 0.65 $ 1.40 $ 1.30 EBITDAC Net earnings $ 324 $ 368 $ 1,147 $ 1,077 Provision for income taxes 90 105 310 269 Interest 168 158 326 316 Depreciation 57 50 118 95 Amortization 301 180 579 390 Change in estimated acquisition earnout payables 6 (5) 23 10 EBITDAC $ 946 $ 856 $ 2,503 $ 2,157 See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. (15 of 20) Arthur J. Gallagher & Co. Consolidated Balance Sheet (Unaudited - in millions except per share data) June 30, 2026 Dec 31, 2025 Cash and cash equivalents $ 1,386 $ 1,396 Fiduciary assets (includes fiduciary cash of $7,947 in 2026 and $7,142 in 2025) 37,183 26,899 Accounts receivable, net 6,076 5,175 Other current assets 807 886 Total current assets 45,452 34,356 Fixed assets - net 765 789 Deferred income taxes 43 43 Other noncurrent assets 1,732 1,602 Right-of-use assets 578 598 Goodwill 23,026 22,593 Amortizable intangible assets - net 10,212 10,684 Total assets $ 81,808 $ 70,665 Fiduciary liabilities $ 37,183 $ 26,899 Accrued compensation and other current liabilities 3,548 4,017 Deferred revenue - current 788 737 Premium financing debt 134 226 Corporate related borrowings - current 1,520 640 Total current liabilities 43,173 32,519 Corporate related borrowings - noncurrent 11,955 12,104 Deferred revenue - noncurrent 177 155 Lease liabilities - noncurrent 497 515 Other noncurrent liabilities (includes tax credit carryforwards of $628 in 2026 and $713 in 2025) 2,259 2,025 Total liabilities 58,061 47,318 Stockholders' equity: Common stock - issued and outstanding 256 257 Capital in excess of par value 17,567 17,783 Retained earnings 6,588 5,806 Accumulated other comprehensive loss (694) (525) Total controlling interests stockholders' equity 23,717 23,321 Noncontrolling interests 30 26 Total stockholders' equity 23,747 23,347 Total liabilities and stockholders' equity $ 81,808 $ 70,665 (16 of 20) Arthur J. Gallagher & Co. Other Information (Unaudited - data is rounded where indicated) OTHER INFORMATION 2nd Q Ended June 30, 2026 2nd Q Ended June 30, 2025 6 Mths Ended June 30, 2026 6 Mths Ended June 30, 2025 Basic weighted average shares outstanding (000s) 256,649 256,260 256,884 255,540 Diluted weighted average shares outstanding (000s) 258,685 260,435 259,260 259,929 Number of common shares outstanding at end of period (000s) 256,341 256,363 Workforce at end of period (includes acquisitions): Brokerage 56,202 * 44,909 Risk Management 11,254 10,584 Total Company 73,329 * 59,291 * The acquisition of AssuredPartners added approximately 10,900 employees in August 2025. Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) (Unaudited - in millions except share and per share data) Earnings (Loss) Before Income Taxes Provision (Benefit) for Income Taxes Net Earnings (Loss) Net Earnings (Loss) Attributable to Noncontrolling Interests Net Earnings (Loss) Attributable to Controlling Interests Diluted Net Earnings (Loss) per Share 2nd Q Ended June 30, 2026 Brokerage, as reported $ 604 $ 154 $ 450 $ — $ 450 $ 1.74 Net (gains) on divestitures (8) (2) (6) — (6) (0.02) Acquisition integration 113 29 84 — 84 0.33 Workforce and lease termination 40 10 30 — 30 0.11 Acquisition related adjustments 66 17 49 — 49 0.19 Amortization of intangible assets 294 76 218 — 218 0.84 Brokerage, as adjusted $ 1,109 $ 284 $ 825 $ — $ 825 $ 3.19 Risk Management, as reported $ 78 $ 21 $ 57 $ — $ 57 $ 0.22 Acquisition integration 1 — 1 — 1 – Workforce and lease termination 2 1 1 — 1 0.01 Acquisition related adjustments 2 — 2 — 2 0.01 Amortization of intangible assets 7 2 5 — 5 0.02 Risk Management, as adjusted $ 90 $ 24 $ 66 $ — $ 66 $ 0.26 Corporate, as reported $ (268) $ (85) $ (183) $ — $ (183) $ (0.71) Transaction-related costs 12 2 10 — 10 0.04 Legal, tax and benefit plan related 21 5 16 — 16 0.06 Corporate, as adjusted $ (235) $ (78) $ (157) $ — $ (157) $ (0.61) See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. (17 of 20) Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued (Unaudited - in millions except share and per share data) Earnings (Loss) Before Income Taxes Provision (Benefit) for Income Taxes Net Earnings (Loss) Net Earnings (Loss) Attributable to Noncontrolling Interests Net Earnings (Loss) Attributable to Controlling Interests Diluted Net Earnings (Loss) per Share 2nd Q Ended June 30, 2025 Brokerage, as reported $ 686 $ 176 $ 510 $ — $ 510 $ 1.95 Net (gains) on divestitures (6) (1) (5) — (5) (0.02) Acquisition integration 41 11 30 — 30 0.12 Workforce and lease termination 37 9 28 — 28 0.11 Acquisition related adjustments 33 8 25 — 25 0.09 Amortization of intangible assets 174 44 130 — 130 0.50 Levelized foreign currency translation (10) (3) (7) — (7) (0.03) Brokerage, as adjusted $ 955 $ 244 $ 711 $ — $ 711 $ 2.72 Risk Management, as reported $ 58 $ 15 $ 43 $ — $ 43 $ 0.16 Acquisition integration 2 1 1 — 1 0.01 Workforce and lease termination 4 1 3 — 3 0.01 Acquisition related adjustments 1 – 1 — 1 — Amortization of intangible assets 6 1 5 — 5 0.02 Levelized foreign currency translation 1 — 1 — 1 — Risk Management, as adjusted $ 72 $ 18 $ 54 $ – $ 54 $ 0.20 Corporate, as reported $ (271) $ (86) $ (185) $ — $ (185) $ (0.71) Transaction-related costs 29 5 24 — 24 0.09 Corporate, as adjusted $ (242) $ (81) $ (161) $ – $ (161) $ (0.62) See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. (18 of 20) Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued (Unaudited - in millions except share and per share data) Earnings (Loss) Before Income Taxes Provision (Benefit) for Income Taxes Net Earnings (Loss) Net Earnings (Loss) Attributable to Noncontrolling Interests Net Earnings (Loss) Attributable to Controlling Interests Diluted Net Earnings (Loss) per Share 6 Mths Ended June 30, 2026 Brokerage, as reported $ 1,830 $ 467 $ 1,363 $ 1 $ 1,362 $ 5.25 Net (gains) on divestitures (15) (4) (11) — (11) (0.04) Acquisition integration 200 51 149 — 149 0.57 Workforce and lease termination 67 17 50 — 50 0.19 Acquisition related adjustments 119 31 88 — 88 0.34 Amortization of intangible assets 565 146 419 — 419 1.62 Brokerage, as adjusted $ 2,766 $ 708 $ 2,058 $ 1 $ 2,057 $ 7.93 Risk Management, as reported $ 146 $ 39 $ 107 $ — $ 107 $ 0.41 Acquisition integration 2 — 2 — 2 0.01 Workforce and lease termination 3 1 2 — 2 0.01 Acquisition related adjustments 8 2 6 — 6 0.02 Amortization of intangible assets 14 4 10 — 10 0.04 Risk Management, as adjusted $ 173 $ 46 $ 127 $ — $ 127 $ 0.49 Corporate, as reported $ (519) $ (196) $ (323) $ — $ (323) $ (1.25) Transaction-related costs 19 3 16 — 16 0.06 Legal, tax and benefit plan related 39 22 17 — 17 0.07 Clean energy-related 5 2 3 — 3 0.01 Corporate, as adjusted $ (456) $ (169) $ (287) $ — $ (287) $ (1.11) See "Information Regarding Non-GAAP Measures" beginning on page 9 of 20. (19 of 20) Reconciliation of Non-GAAP Measures - Pre-tax Earnings and Diluted Net Earnings per Share (Unaudited) - Continued (Unaudited - in millions except share and per share data) Earnings (Loss) Before Income Taxes Provision (Benefit) for Income Taxes Net Earnings (Loss) Net Earnings (Loss) Attributable to Noncontrolling Interests Net Earnings (Loss) Attributable to Controlling Interests Diluted Net Earnings (Loss) per Share 6 Mths Ended June 30, 2025 Brokerage, as reported $ 1,785 $ 459 $ 1,326 $ 5 $ 1,321 $ 5.08 Net (gains) on divestitures (12) (3) (9) — (9) (0.04) Acquisition integration 85 22 63 — 63 0.24 Workforce and lease termination 55 13 42 — 42 0.16 Acquisition related adjustments 66 16 50 — 50 0.19 Amortization of intangible assets 378 96 282 — 282 1.09 Effective income tax impact — (1) 1 — 1 — Levelized foreign currency translation 7 1 6 — 6 0.03 Brokerage, as adjusted $ 2,364 $ 603 $ 1,761 $ 5 $ 1,756 $ 6.75 Risk Management, as reported $ 114 $ 30 $ 84 $ — $ 84 $ 0.32 Acquisition integration 4 2 2 — 2 0.01 Workforce and lease termination 7 1 6 — 6 0.02 Acquisition related adjustments 1 — 1 — 1 — Amortization of intangible assets 12 3 9 — 9 0.04 Levelized foreign currency translation 2 — 2 — 2 0.01 Risk Management, as adjusted $ 140 $ 36 $ 104 $ — $ 104 $ 0.40 Corporate, as reported $ (553) $ (220) $ (333) $ — $ (333) $ (1.28) Transaction-related costs 52 8 44 — 44 0.17 Corporate, as adjusted $ (501) $ (212) $ (289) $ — $ (289) $ (1.11) See "Information Regarding Non-GAAP Measures" on page 9 of 20. Contact: Sara Walsh 630-285-3593 or [email protected] (20 of 20) View original content:https://www.prnewswire.com/news-releases/arthur-j-gallagher--co-announces-second-quarter-2026-financial-results-302839454.html SOURCE Arthur J. Gallagher & Co.