Arthur J. Gallagher & Co. (AJG) 24 Oct 242024 Q3 Earnings call transcript

Good afternoon. Welcome to Arthur J. Gallagher & Company's Third Quarter 2024 Earnings Conference Call.

[Operator Instructions]

Today's call is being recorded. the the in during constitute response within meaning of including conference forward-looking Some the given answers to of Instructions] comments this made call, statements [Operator laws. securities questions, may statements not does to or call. any The provided company this assume on update obligation information forward-looking actual These forward-looking cause to differ materially. uncertainties that risks statements to and are could subject results for such recent Please contained in sections and refer Risk XX-K, and and XX-Q Factors to on the statements information more X-K uncertainties. filings company's risks concerning most details forward-looking the

In addition, the section to Relations materials of measures, information reconciliations this other call non-GAAP Investor refer on for regarding of measures the as the please other and the discussed earnings company's release well website. as in these

Chairman Mr. Arthur Gallagher It is now you my Gallagher, pleasure to CEO Junior, & J. and Company. introduce begin. Gallagher may J. of Patrick

Thank for you earnings and you joining quarter afternoon, us much. very 'XX everyone, third call. our thank Good for

me team the of today management the is with our divisions. members of Howell, Doug and On call CFO, heads operating our other

our caused to to and damage Before I storms the acknowledge comments devastation like I'd financial the floods. my results, and recent by get about

Our thoughts including own events, by are impacted colleagues. those these Gallagher our with

coverages, and helping their be I'm hard helping restore businesses file are noble through such important company with losses an and of Our professionals and a rebuild lives claims responsibility, and families, get clients a cause. really sort ultimately at part work, and communities to their paid. that's honored an industry

financial third quarter. regarding Okay, on great to my performance. We a our had comments

earnings points share share GAAP organic fantastic growth, of XXX per interest XX% not another we of adjusted the growth and segments, revenue, by earnings and posted income. margin of X% operating year-over-year. combined basis EBITDAC XX.X%, include brokerage adjusted up margin our For up per does quarter of $X.XX, XX.X%, XX% earnings year-over-year, $X.XX risk Reported net management which in team.

XX%. headwind Organic segment. over sales the of of good X Doug reflects line in with large about his October growth those X%, these results with was revenue basis, to cases remarks. was at starting life forecasted, couple you our Reported will a past some growth segment Moving we with have provide expectations right highlighted on point related Brokerage to as quarters. in timing news from we from the which

EBITDAC margin Adjusted expectations. basis day XX.X%, than IR to expanded XXX was which points our better

me Brokerage our more the the with way insights organic segment Australia in Within and the U.K. XX%, Let operations, Canada led give up behind outside U.S. flattish. PC and X% than we of delivered and our was organic. Zealand retail the Internationally, X% some U.S. New was X%

about Our consulting business and global organic of the employee points differences from sales. brokerage and higher, the few large X% posted excluding case life benefit a timing

so or our organic growth, wholesale very retail, X%, to and whether overall businesses of reinsurance. reinsurance, specialty Shifting wholesale strong

to premium increases mix. renewal all ago. business geographies outside in and through by of exceptions. few renewal couple changes lower X weeks July relative a very September the Most with similar quarter Day update were let me and the renewal little primary some the on September insurance PC rate market. were and provide both quarter at environment, X% the IR with third our changed discussed which Next, include thoughts starting X% premiums, we from insurance lines U.S. had casualty the driven months Global up and exposure of a August, pricing changes

a Additionally, trend. the the than in a of bit large premium months of first these appear September increases to less and were be E&S But X neither renewal account quarter. property

X%; D&O, the XX%; product renewal commercial up up we X%; up X%; up was premium we up flat; changes line, October, account about up are lines and liability, property third saw far following: XX%. premium renewal casualty and Thus down September. seeing X%; Breaking down umbrella, large international increases X%, than auto, by property in higher general cyber workers' comp, personal quarter

and overall, We continued in shine pushing environment. still with in view, needed this our for cautious profit. be rate an carriers broad-based rational to in to underwriting generate So acceptable increases where it's

as coverage while best to brokers is premium clients help find job Our the increases. mitigating

all not further organic, while ourselves and of increases ultimately leading So our in with the allows market up expertise. us show rational a data to our differentiate tools,

complexity season terms tighten end concentrated The in Let some July the me the of modest and the casualty concentrated price month which the lot top the Clearly, reinsurance over early, happened still is hurricane to believe for than modest saw is some likely in property now downward pressure don't the more shift we month. X property property discussed. being towers reinsurance is saw has adding renewal at and market. conditions January X declines price U.S. while increases U.S. a a forget, season renewal now past renewal to And previously market another over not but renewals. It's flattish

remain reinsurance key a is into adequately next and is there likely U.S. upcoming underwriting the remains will believe capacity year, noise to to especially if casualty think related adequacy. more renewal at Overall, capitalized the We X for clients. will industry reserve we heading renewals. reinsurance be For January likely to cautious successful differentiating meet demands risks, practices the

how in in believe of perform to the continue will near Re well XXXX term. market Gallagher the regardless unfolds We environment very

business customers' comments activity. our Moving on to some

again Our positive and cancellations daily for in audits, quarter. from were revenue endorsements the indications territory third

of they XXXX. in While as XXXX, the isn't are much line upward amount as with adjustments running revenue

not business meaningful activity are solid, seeing of we client economic any So global signs slowdown. and remains

the the on market solid Within U.S., is labor footing.

for remained and for number Overall pressure and increased upward In continue wage growth, in the looking job people work. workforce rising inflation and fact, their cost medical ways challenge to above employers well looking of number benefits of unemployed grow their costs. jobs the open to August control

offerings. together, we service outstanding value broker extensive and expertise, client conditions, continue would our proposition, analytics the year. local that this take smaller full that all see to Regardless X.X%, to about business. across around competing organic well share outstanding believe match are 'XX our brokerage against niche be I data cannot are year time, we Remember, Putting or and XX% our of economic another the and market market brokerage positioned of we

to segment, organic XX%, on Management our including Moving growth Revenue X%. was of Gallagher Risk Bassett.

We activity, customer basis and than higher continue September Day bit rising claim increases to in Adjusted retention, points XX from expectation. business year business counts a margin and benefit IR XX.X%, excellent wins. new above our client EBITDAC was last

full see Looking year around fourth organic X% pushing ahead, we organic and the X%. in quarter

quarter Margins full in year the be that another year. range, outstanding and should for XX.X% be too would fourth and

and acquisitions. Shifting to mergers

prices, disciplined new estimated of revenue. representing quarter, third the X completing annualized million we During remained $XX at mergers fair

us, very a professionals. to welcome joining Gallagher partners new like I'd the those extend to For warm of family

of firms XXX Looking more representing around $XXX chose a would annualized and with Good million we representing ahead, revenue. than if partners, XX revenue. have choice, partner in Of Gallagher. potential have approximately XXX these annualized turn sheets being about $X.X to of our billion always we it they pipeline, signed prepared mergers terrific or have be

with me conclude some our comments culture. regarding Let

business. and not a many ethical our that we culture moral Gallagher culture. and care culture success anniversary believe we It's As It's that one highest a years to the love a come. another from our them, our culture this towards enjoy XXth runs is continues will passed as a customers, standards embraces of greatest to problems, away be public that I differentiator supports We Frankly, guide that bedrock culture behavior. a Way. teamwork, to continue our and of that in taking grounded for is our the company,

Doug? turn stop over now and Doug. Okay. it to I'll

hello, everyone. and Today, Thanks, Pat, you I'll our through earnings release. walk

and segment. by First, an update look an on and on quarter on growth I'll comment shape I'll third for organic early 'XX. margins up we seeing Then and fourth are growth how quarter margin organic provide provide

prepared to comments commentary IR document M&A capital cash, remarks typical and walk on posted I'll move helpers, you CFO conclude I'll through Next, with the usual my and we modeling that on and management. our website our my

to signaled sensitive, Day interest let's the waiting Brokerage to about line of of clients quarter segment without growth X interest IR earnings headwind income. last our the due point Okay, of Headline organic timing that of so. September these right interest life Well, large forecast mentioned or discussing, Recall flip good as news, third over during That's Pat lower a been with X% in which were we month Page live the rate so are happened the for rates. products sales. release. we've

We fund are clients their now seeing policies.

In earlier fact, here slipped in than caught up more October, already we had half have quarters. what of from

year been So seeing And lumpiness is starting other we in that organic the the are full the year currently swing to pushing way October. and towards X% X.X%. we fourth throughout thus, highlighting quarter here quarterly have

X% to our 'XX thinking segment our how growth the 'XX, day. range. upbeat an we our could As ultimately through early We'll that might organic be so, some might the XXXX full we provide year similar early IR brokerage new us. play in on X% are on business to to ability as these the But our believe December more start support niche higher remain market across read for is given If is And out. to business 'XX our the for rolling in leading expanding we client experts at have budget new a mean from offerings. been to is and adding retention analytics environment and investments making We the sales to tailwind described, Pat grow still data the actions out tools production strong and globe. thinking

to now Page the X Brokerage table. adjusted segment of Flipping to release earnings the EBITDAC

and XX.X%, September expectations. Third over basis points up year of margin upper above adjusted quarter last EBITDAC IR XXX our Day end was the

through a walk me you from Let last year. bridge

earnings But we been organic FX quarter. back would nearly year's basis that XXXX XXX points First, using EBITDAC last interest of rates current this period third expansion then adjusted release, if quarter XX.X%. see of margin out Then you XX.X%. you and pull have would us now gave reported

points Finally, and quarter. basis this impact of about XX the margin divestitures M&A of used

brokerage of You you XXX that really third the quarter the margin XX.X%, team. work 'XX and margin basis to follow of that's That that, great by will really, points is and expansion. get

XX point are basis margin would quarter expansion ahead that 'XX off FX, basis the of XXX merger. and that would than we full quarter last could of look expecting currently adjusted 'XX, impact which to If the lower Buck do we be points, margin quarter And XX.X%. be 'XX margin first that, is XX roll-in still the headline of again, from fourth estimated mean As in fourth excluding basis XX to XX for about of year's points expansion margin we to basis show about points the range. year

Okay.

of continues tables expectation. Let's our because Bassett was a We move ahead delivered and posted X of day we quarter. another and Pages see Gallagher for EBITDAC our and on bonus than solid that's said, over guidance prior business an Management production Risk the full organic EBITDAC IR X organic basis segment qualifying just excellent and adjusted client new point on to the revenue X%, X. up and retention XX to of It large lower is IR and related Day which year still to X account. That strong points margin XX.X%, miss

X% around That, forward, the were margins of the XX.X% to by that, XX.X%. If Looking X% we and great team. margins quarter. would with we be the pushing see in organic post approximately we too, year would work organic fourth and of finish

to for for organic the that call similar X% As range. early to it X% thinking is our Brokerage growth in segment,

acquisition in expectations release segment unrealized and due Day interest costs In third that developed expense segment forecast. our That approximately the quarter exchange Turning to September Corporate our about of in table. already for here the reversed After noncash foreign call and Day line total, and within Page IR $X during in additional included of our it corporate approximately of September X wasn't expectations. in numbers earnings remeasurement October. shortcut -- to due came below was $X.XX. the has to clean tax, banking, Corporate adjusted million energy The IR now

it noise. cause So the nothing noncash, is does a our really accounting opinion, but some in

as you Let's to than these There's just and on FX, now revenue other Page new consider the move no update helpers. so EPS your news CFO models. here X, updated modeling Starting commentary impacts document.

the to commentary of change No document. to CFO segment Turning outlook Page the fourth quarter. our Corporate for on X

Flipping to X XX. now our $XXX shows to credit tax carryforwards million Page at September

up M&A. fund helps show does it won't cash our for future which benefit P&L, the next years, this benefit the flow few us While in

Turning The table. investment to X. Page income

this is table, that we These table rate our We fourth what of Day have our column FX does are with rollover expectations. day. point provided quarter $XXX before quarter our to rates. divestitures. are fourth revenue 'XX basis subtotal September IR the 'XX cuts ] now updated in IR our Shifting not million consistent quarter [ and in current estimate embedding at change is the here and million September much down third page the estimates from $XXX XXX for Punchline

right brokerage Looking for forward, estimated through the revenues closed include the columns pinkish to M&A yesterday. through

reminder, see the million. So be make quarter to a pick revenues just And you'll expected Risk that segment $XX fourth for future when 'XX a rollover are page, move approximately for down you need you'll M&A. to on Management

to capital 'XX. Available cash are position our robust billion. M&A was on flow, cash of M&A hand expected fund in September strong our pipeline at $X.X So here moving cash funding. to balance management about Considering and excellent we this and free in an XX opportunities

maintaining in M&A is -- all around like for estimate solid we currently looking another rating. could making $X capacity of while We billion 'XX in solid a here fund and have $X investment-grade billion 'XX, to M&A

quarter months delivered combined reflect of Brokerage Management segments, XX%; numbers for excellent books. unstoppable earnings, an X%, Risk XX%. the adjusted it's EPS, X XX%; and net first growth the up XX%; EBITDAC, up Through our Those we have up culture. So terrific and another are the up year and in organic of revenues adjusted

hard another We off Hats of their way results. great financial work. our to the all for on are well team to year of

So back to you, Pat.

And we operator, questions go Doug. answers, and could please. Thanks, to if

[Operator Instructions]

line Zaremski with Capital Our comes Markets. the first Mike of from question BMO

most still is there. on not, segment RPC the sounds -- pieces more from Just was higher that and organic kind trending from trying understand if it you in XQ of is insurance First muted. some the kind is into one life uplift is the to you RPC organic kind lifting sequentially. bridge Are saying off of But to saying and of is XQ of X-point are brokerage -- to the like XQ? of

right. All

rates not is the all think in to that RPC, not a I right We're when first rates renewal in compared now, that too. I underlying releases of referring what premium to saw we much carrier changes are in the -- think you're that I'm So third what we're seeing And different, seeing quarter for X quarters. lot all as you at you're the -- our what assuming. seeing

the what second. for quarter, quarter, So same about fourth as the assuming in here and the rates seeing we're third first same we're is which the in as the the

We're sales. additional the are we from As running the X X% increase in, take -- point bake now. X.X% quarter, getting our But it's we're all in next puts around we range. right you the to when the takes business for out think that this about That's growth you that in Yes, of quarter-to-quarter. organic life underlying growth X% and nicely when insurance

it. Got Okay.

no So seasonality anything or there. other

Okay.

slow fourth has little the a leader We years. organic that are as reinsurance and us, of big a It's last for in over not an for been couple the quarter quarter.

we're reinsurance. we little impact because yes, not that quarter So so do have to of fourth weighted bit heavily in the a

at expected, margins or I should guess, is to, I Okay. but caused go like and looks down? than just spike Switching down. the fiduciary you're much the it if income, What guiding why -- was a it better [indiscernible] bit investment back gears think I look

I at Well, you have premium there. think our business to funding look

commentary. much So I that much changed the when estimates think fourth X that quarter. we've look earnings table we've at a of our all don't changed excuse the on CFO take release, comments -- our me, the you the don't I for all think of Page for the

that We fluctuations where too, can there our have, cash number. in can that be also realize times we fiduciary some balances, impact obviously,

renewal of guess, earlier Got you some Doug, comments on a the follow-up change. price Okay. made I as And it. to

an too, know have terms from on And the side we guys what from a number view under seen lines. that are in a had casualty uptick we've pricing. major they past, So of carriers the that hearing seen earning the of I casualty in on the some is carriers so actually, far, have you're you of

process price thought could some gave in on some there kind of side? casualty 'XX the still is hardening that that on how could play out you So think you your tidbits as us be

board. heard casualty presently part it but I more don't to the on filter seeing, on continue some if know that you up is a And line in The casualty take across will only we're you do have seems earlier, are finding their however, definitely know. price rising us showing The to as XX%. presently to discipline difficult There's concern about than bottoms, at Umbrella time rest, strength.

I got number one here. just

quarter full ] lines quarter. our [ business, a third casualty second Our point U.S. are versus up

next Our from Sachs. line Goldman is question of Rob the with Cox

I components. the organic. So guidance the brokerage the about all I just appreciate curious was on

guys of curious had new pricing. unfold X/X might beginning it year, the I about X/X, that was this business in expect talked how X/X, just you guys exposure think was in I maybe XXXX. you

of the I going think business, half between to think it's be rest that and exposure I it in it's excess new business going split rate. and lost to of

helpful. Got Yes. Okay. it. That's

Just decelerated tough on but maybe just guess it's than little U.S. all bit a into like comments, it next curious, the maybe U.S. to the curious views retail little quarter? your was seemed retail go international through a I bit I also international between going more year? and this

where that seem see think does Well, backing going to is off. growth. be strong now, and component not I you're international That's our to right strongest that

the fact find quarter can see this So our if that was good part remarks, our talked prepared you they look and at international we're we that. about of growth a

it this quarter. Yes. and Australia operations New Zealand killed

nicely. do mean they're if flattish, you is that. Canada I want So little to up a

that anywhere there's If third and also issue in there's say are causing concern. you I a caters by But look quarter that through. there large, see you the mix at U.K. us that the wouldn't

and led quarter, this count Doug's XX% is up Australia. by was Zealand right and New International

is Wells of The the Greenspan Elyse Fargo. from line question with next

organic, quarter within any impact embedded storms? assumption there fourth question, brokerage is guidance, on from commissions X% first the recent the for contingent your an My

million We -- but be storms, at that XX don't move that, maybe think bucks going from to wouldn't impact, basis couple of the heavily we're moves points. a it maybe

that's Okay. to benefits you of was assuming -- assuming year. guidance, And you for X guys then what there of little that brought Are guidance, it's in you to Are typically you think you where this X you right? next think seasonality volatility wait I this the some by-segment some understand a the because but rest assuming segment? a get will with give within brokerage said head next year. I just on of I business, line sense just I kind right, longer the year, are to wanted know the year. the for

Listen, if points reinsurance range, and that of when maybe you're like of pick side was the midpoint you on want is something midpoint. X for benefits to around a X either the around couple of that looking

For year? next

next Yes, for year.

with quarters, presidential know M&A, transactions? little quarter of Okay. the you the expecting has guess, been that just And years, lighter seen like election do than deal closing in activity X in then year? do fourth you guys it's that more slowdown How right, early what the through And next on it's right, front? things a I year, the a first just caused, a guys I are think see in prior we've flow probably you given

-- if think this I take is you Pat. Well,

of the for pipeline. We've the pipelines In in the in board terms you a the got had. best my If general of at across got marketplace ever last slowdown there's year. we've of experience, one acquisitions, been we've a great general bit a look

great when do case election door. to I could rush any think get continued a Democrats settle I market of And on you this there'll the at don't the that there'll win, little but there that or the to robust ends. concentration what think in, out, return things rate, we think be bit So I that in think a know Republicans Clearly, do I the opportunity. happens I be be want more it when the discomfort, think possibly if for if a finally call

Yes.

closed in be last [ these XX [ at ], going 'XX, I ]. year, year-to-date 'XX, 'XX, [ XX ]. XX we to of you and we year-to-date 'XX if we're acquisitions. deals in around closing are Yes, I at think Year-to-date -- tuck-in we're think we look closed XX

So from quarter. think I it was detailed you heard pipeline now. pretty our a Pat's little as comments, right is But terrific slower this

was corporate reversed And corporate I then that FX remeasurement, September thought because worse, last one change. in Day within modeling of than Doug. QX the segment, right, yet? just the that in you that that Are quarter, the but but IR one for like you line on then corporate not the said didn't fourth guide it

We point. end the what for have a might bit. on a a able but been at quite couple little It's pennies that be a bounces around on the good of bipolar Yes. saw third the might to that. of line we reversal schedule We extra quarter, that of

So happens I think what again. that see

we work. for So changing didn't as pennies of like feel we're couple a that just

with Next question line Peters James. from is the of Raymond Gregory

last answer your on on Building acquisitions.

of to One through feel Pat, of the help out tuck-in referenced as -- quarter. tuck-in down me there was a going stuck came the usually why things can any what down multiples as remarks, down just a that prepared you because to struck little marketplace. out don't weighted well say, maybe -- pricing should bit in your Is third average emphasize for discipline the And in came multiple you seem I in the your lot the about me, acquisitions like the or acquisitions? talking in I price than happened, coming more are multiple understand supplement

we reminder. the it's rather discuss been just Greg, did I remarks, think the prepared we When undisciplined. we've Yes. good past, No, in a

people We've fair us. do listeners and a pricing, price. maintain own have discipline And a the theme deals years. a that around our listening our to lot we own a that join strike do reminder a between XX it's acquisitions, try a of is this balance for to people great we folks to good people the and of to to to calls, and right that for we want seem good lot these just at a we great done And now included. We the us. to But our

down And to a materially quarter came the like back I acquisitions third the felt like multiple I step time. for take

those little but priced, One opportunity not market we it help was under get some say, acquisitions was priced to it of better. a I have because would

Okay.

of sort nitpicking Another item.

year earnings X and of going was versus in the in And Page third small quarter Or you maybe this know on? adjustments versus last were the EBITDAC could third brokerage. charges last on a could on the your [indiscernible]. year. help. things Is termination that's Maybe out one what's a the release the there adjusted sense sale? of lease a bigger it's us going huge You inside that press you I something going a is to offshoring up in going and earnings give this just get year year to just going just through in on jump to through statement. Is stuck me on your I item workforce of related income more your

I'm Greg, sorry, go ahead.

years go people strong we do issue continues there was I a is thing with can across really pretty for the with to the XX,XXX It's you'll like and do things small speed to We're of there's the the quick type on ago, pretty we which play strong illustrating And certificates, quality good. and now. we board, just us. Greg, adoption. group. acquisitions say, be as going very started recall, offshoring hit very you So And a

Yes.

just benefiting scale. excellence, continue offshore a you're We of that benefit the and from flywheel we're see I benefit think you're it just centers from gives stronger us deploying. optimize starting getting We're we from seeing workforce. to our technologies to an to opportunity -- as stronger

think to I workforce. up bit seeing this we we little a quarter, optimize popped our so And some because you're opportunities that had

see time time. you'll from to So that

the for still macro know there. budgets X -- sense rate it a the customers the hear little you're year. stabilize than, back a How seems like are Give more customers, last changing just Are are flat spend? and say, the you've ago. their Is budgets? them to beginning market then And you your Great. commercial I how bit will given your from sell, be assume it the question, is it step the when set increases In their that for on us had one. the for insurance budgets this seeing increases. past, you to was years more seeing robust budgets

thankfully for Really is X reasons. to not flat, are -- Exposure continuing Greg, grow.

-- are We're a et in the we that through middle daily market. that's go coming clearly economy, Our of audits, seeing a this our and big review robust of why is through part the things cetera.

And so from all on large are People the through exposure got the SME their way we've expanding that. accounts, units. data

So going budgets up. are

very Secondly, we are very, cautious.

We that there's of any to are to leading rates. not customers relative Nirvana believe kind

we what's detail We liability with not show is is X%. property our happening. general That up up them X%, that and go over quarterly, you is

not right to discussing through back have stack coverage the you that, P&L, you that you is other You ], on which got into may leads but not hand, hit talk might bring deserve much how retain that. into not the [ may That may we us what deserve before. 'XX your market, and you had this a rational

that spend around all and to it's being decide that rate primary art discussion the of they're get a And to understanding strength where has buyers with going their and a best each account individual appetite that's real for is by those risk working any how means. not broker

Yes.

even you think in ourselves. the and take the tools year now, last differentiate a I cycle before out capabilities rational and that show [indiscernible] seeing pricing the the guys will right cycle we're we have that our this that have, of we've better pricing new than business lost see and couple seen versus why when I year through shine I next business years. that will of said That's and

you can we into our We data take now, know to this. to can say point, And their clients that quotes like think by and you and looks this the buy cover Greg, way, clients I are on And Well, house is by taken care the darn appeal. this. that? about pretty the looks way, been a their of, selling this. street. has good, or why has buying One costs like street Think

to The buy. junk. more you get try the don't who to house like on like better gets people price. Why other a want looking the looks Guess we street

to a we And to talking art increased what when confident And see rate about we a it's good better our sales go. back to about this, is that's that, very point why broker. some my environment like get all of salespeople be feel folks, let's I

The next with Criscitiello Dean question of the from is line KBW.

maybe guys in especially the if in premium the hoping sequentially. context sequential decrease pretty holding growth you was renewal the in provide additional of up I brokerage, on change some color organic strong that could

insurance lumpy, I those a little we're We've each bit, I is heavy little that right? a but X.X% running around bounce our listen, there talked if Well, earlier it's you because think growth a first out X quarter, quarter again, reinsurance being quarter. the about of organic life said things of strong some

So while we warned rate quarters. at against point full was of [ the on like looks but that X% that differential, that. substantial it Also, there headwind seeing a not yes, we're the now, ] we're rates face, between

some things underlying when got underlying that it. the take of carve It's I've when lumpiness, So to than set. of other mix word the seasonality for life the really renews, out it casualty you renews businesses, when pretty that, a our of you between steady our versus couple differences property those

So now pretty right underlying. it's steady

back go to up want you years, was X D&O XXX%. if And or Yes. X

rates these move. geography, by line, a They difference. do by So make

we're seeing near XXX%. renewal D&O So a not anywhere

In off X. fact, X it's or

move. boom. being This news is do environment for So back X% percentages a Good next the the an where say, years. not XX it's quarter is you

competitors your think what help was one, middle wondering few space? large guys are Got my you it. their competitive And being I adopting going then have of a player of environment market capabilities. that implications that made makes some forward, to you acquisitions And improve sense. the have on in do that That sort second

be any has perfectly blunt business all. at to it think don't on I impact our

Truist is The the Mark with question of next from Hughes Securities. line

thoughts and did XXXX for margin Doug, early management? give you brokerage for risk

I to December we have to growth to There's for will opportunity I X% go I get not. budget, an there, in continue year. as say will post we through X% our Mark. organic this. the It's us but next better.

continue other opportunity inflation, to we underlying to you're technologies, better. coming for will an it out the that the opportunities inflation organic X% margins current are of through centers have scale that with absolutely current spend and better Our have wage advantages our we're expansion. to an gives get still in excellence And us with of using our when opportunity growth, X% punching seeing in offshore categories environment

organic at and the think components that? And you do good. reinsurance, might of given wholesale could the then out -- have broken components those I but collectively the to have happen by Very you you give X%, then up

Listen, Yes. like our businesses some of be XX%. at might Affinity

businesses program our that might of X%. around Some be

around our I somewhere quarter. or X%, around or The reinsurance X% brokerage open is X% somewhere X%. think is X% this

than a affinity it just little other a the maybe business the So I maybe program just you're and why X%. a a business this together, looking quarter not reason there's but them a just script, couple at say below we and difference of was short love the better lot the But would that in little around when X%.

on then admitted And the of ] any [ mix comment, shift out Pat, Understood. lines? P&F the into

Yes.

interesting Mark. really it's one, think very -- it's I a

submission primary great has supply not and the is tremendous market down, continued that think interesting, to flowing slowed we're into any extent. accounts really we not seeing are RPS our which at seeing wholesaling back I operation

that local to ourselves deals to than reason. for you're layering business structuring our a years, and more So honestly, that -- a the goes the the got RPS. maintaining accounts. into excess has There's a RPS surplus XX pricing gobbled the think lot people last bring know and it's up X, of retailer, And and a over market a continuing goes we've there. That's lot its be XX% of we expertise growth chunk wholesale included, in some market, these of P&C of I just quite seems which deal. to its that's that big There's of

market think as So well professional it's and as access, that market still capabilities I nicely. is both growing

Our is next of question with Alex from Barclays. line the Scott

like that I'm there maybe is you're as growing So that I change. I Is through? what causing and retail it But and saw? I about the in next means seems run understand it? and at headed the -- saying to some of like it's When does obviously I to X% piece puts for businesses is nicely just some not What the mean of the the closer retail the wholesale and trying other some and there, growth flow we guess X% reinsurance takes than property trends specifically. that mean, business, when price guess, well. hear doing rating the more strength into look anything and to deceleration year core reinsurance lower, you're piece are it of seeing the something there wholesale that's that the I just very it of of core

of in around is business Yes. benefits I large and back that mind, take always bounce stuff your little bit. live running keep business. the our a out the cases X%, around That

but businesses So -- about you down as have that think that are naturally listened, the range, the that yes, below benefit that you've to runs level. X% -- that you also above as remember those

our any mentioned large, across all each of a that But But run not flat. other, systemically operating, the that was businesses there's about lower a running level organic that. than across particular I now. few but Canada there's like actuarial right is by below one services look bit area and Some offset the we little that as it's that

Got you for could it. that that. want demand? Can color add talk you terms can do despite what does clients' some bit rate And I And mean you're go to of demand mean the sounds reinsurance? your see if have maybe about just around growth in seeing then with pricing. flight pretty a you're reinsurance. to if anticipating robust the back to I we I

Yes.

around where a for seems there us. news demand which very, expertise I they the in capabilities strong reinsurance helping I and very Also, that how market think are a for strong, they customers. our what's environment around clients play for move capacity. that can move the our our think next is and capacity level good demand is consulting in in very carriers of It's

have you So both.

demand. got You've

you funnel And good that in of the There's at we list. primary utilization. X players growth business, into the strong of top level, up and that prospects the X have more of on reinsurance. for as think the all flows I have a lot

next Sakys from our with question Katie is Autonomous Research. And

the question now. to want and for subject right of [indiscernible] you take to apologize, valuations. Thank I just back fire [indiscernible] a I the

And the and has for than at are past. all? deals have higher seen was acquisitions thinking larger couple we've I deals your the excess in seen curious of in been So what seeing whether are million concentrated really that lately. larger $XX acquisitions you appetite a the you're those We've in to in lot middle how a market of shifted those multiples that about on of revenue. those guys participate compares to middle-market

we our deliver stock in does, I if actually They this that career they question, ER somebody might environment multiple opportunity. I as going when and Pat no they a work I acquisitions, stock advantage Listen, do, probably participate equal get their people an broker. decide to that think us where looking pay us. room. we'll is tuck-in get considerably there's value one broker. higher there get for as They the to large an that understand else employees our think for their their form in that's It's a customers. But come the get inside look as at that everybody and they out the to be a stick a is to fair put person. they -- clients understand broker They more get It's a and more the with in take of to insurance and selling price they for get to our joining do, you every value resources a that into

Many look the to going they continue and at to that they do. times, say they're opportunity on they get doing it what

continue or do So it us would long it they like forget for know That's about the they in their they Don't is to making get XX to for excited career they're a about multiple. them, with too. valuable and XX, that's their family, return to XX doing it reality that. as and great they got

in Let's I also platforms. $XX are and the XX,XXX year, million Insurance enough last estimate landscape, deals think, in Last and big the brokers get revenue. big this, #XXX top don't there's to in ranked we July, America. XXX a headlines, Business take look United States, Insurance Business the about at because they big talk and agents the We

in the world it's with the we're in than that smaller there's America, in why say today. XX% we're and that's probably there be that's last Aon brokers So over are brokers compete trading the time, only and not of the continues less when competing to decade, with firms, of who competing Marsh the people, which we and the marketplace, somebody that XX,XXX we consistent really time larger XX% are out

possibly market When that, We at can culture else $X matches put to revenue billion their multiples. aboard them be people do. pricing XXX we not about have says, funds, top robust of want theirs. we a It's don't that people at our want joined use compete, fits out end. think of There's XX we that and and a and these our of their bring somebody We opportunities culture haven't lower pipeline. join can Doug you on the us, that with in as to can

doesn't of and Doug it good a our As pretty It but the seems cash broker run like a us. strategy good get brokers. press, said, to by use a

question Motemaden Evercore ISI. is from David next Our with the of line

basis. were could wondering the was XX% organic in had brokerage you on was in about talk driving I contingents up just the Just a what that and an question quarter? if

Yes. that, Listen, the the quarter. our I in or developed think our up $X contingents in those of from. million that's $X our that for benefits where and quarter U.S. estimation We another few about contingents -- it's where we million had or extra business when business, you're retail between just picked talking it a

of could back a and those it was in it both million special of we that was give because of storms of by few quarter nothing couple dollars but So in happen, I there. around of would And what there floods, the possibility large, businesses. and million again, next the might say a

Got it.

closed of process That's Like Okay. I heard those the how in guess have question. signed that a million what helpful. bigger Do on the the commentary And any being picture prepared close? those many in percentage just of on getting of you of year. stats $XXX next historically revenues. with I term just or the sheets then

level how could contribution the Just forward? going much to help us set be

very interesting don't, the these thing. Every one story Really of into a itself. here is is

each I You've time heard a other prospect was the mean, and talking XX to think say, spent I years. getting longest to me know we

sometimes we're we next pricing quarter, get X we going to getting of together to a years, but that's and decided letter to get in a couple putting So a intent, happen that's in deal the they a months. get they sometimes when take And serious. of

many It's insurance, So I a It's how have close, frankly. don't. full-on just really many how selling a don't do process. those of like on stat sales

don't feel very close this Technically, we will every the hopper, XX. We would asked give you lot. get to about to some not lot in at try we'd me those. color. good right of quarter, I Right an good now, lot and very awful think good going deals I feel now. we're these we the a have a a have shot If proposing about you're that

it little it that good like sounded the That's And just sounded a P&C bit. slowed organic, then so Okay. U.S. finally, to like retail hear.

you large has I here that think fourth the reaccelerated the talking that quarter? X%, last about I property was X% Was business just think that were it heard in if it was that account quarter. right, I and

quarter Listen, got I'm more bit just but here. first If quarter is way looking same right about at we've sheet We point now. to little moved, it better as another. moved X.X my what that, second than it have [ ] just the number one or a did

is line with Bank from question Carter next Our the of Grace of America.

we the just resurfacing the quarter all if few pressures any about the conversation maybe in given potential line ongoing I last the hoping around saw that over are a was talk the we casualty wondering more, from market, casualty months. thinking how could next of contingents risk of about was little contingents some of you -- I kind the bit

as that to have going we're I it systemic If a did, talking face. few call million being that issue to I we're a bucks. wouldn't mean

some with the -- few Just that contingents. do million. like There are on it's storms, have caps a corridors our we

level there's losses there's let's had than full our more contingent And may have, the that. if caps get -- us maybe carriers still It so if hoped. they because let say, sometimes, to on

in past now, to casualty as what rates saying, the look also. not but level pressure book, way what lot strengthen -- have what their only they're seeing if they hearing we're and we're of right from in from a that should about contingent the we're continue in booking. we been So our it carriers them, forward And maintain not reading they our

in the XXXX that XQ? on to follow-up lumpy as sort impact life of timing understanding Or sales. correctly, from quick work itself of expecting in a I'm out issue the just lagging early If expect And you all much are should well? any pretty we

had and What second -- recouped of excuse out the I said third is what that quarter come of already we here half timing been have had in the first quarter. and October, me, -- second

that of maybe and so all year, to pipeline, end the now we recover we'll again. start So we've then a have], [ far pick up got between at the over we're -- think to and going

competitive other and every be gin benefit more package. is their opportunities. year for organization, up and go for there order But over many them can in this necessary out sales we in not-for-profits start got becoming and some executive see more to next like product we to if Just

So we the is or that think legs long has this several product a years. many over -- next many

Capital Mike Markets. BMO is question the last with Our of Zaremski from line

Great.

Just a follow-up insurance. life quick on

to know growing if just don't So traditional might more are revenues just over product ballpark, or I into insurance. out that faster time what it life lumpy percentage of than break new your this life. be want brokerage And you

million The talking about we're lumpy is business $XXX business. about that

it can why that explain move helps That much. organic Okay.

December our We much you evening. you well globe an then. it, us you that's our quarter, clients. performance. to hard we're excellent York City. meeting this We us our with you to their with excellent around year like of for Thank delivering financial again, way to work had speaking thank this and again on colleagues another person New for very and We'll Thank I'd to to operator. dedication third being talk the in in XX,XXX joining afternoon. everyone, forward at for investor think I look our

today's does conference conclude call. This

may this You your time. lines disconnect at