A Brief History of Arthur J. Gallagher & Co. (AJG)

Arthur J. Gallagher & Co. (AJG) was founded in 1927 by Arthur J. Gallagher Sr. in Chicago, Illinois. From its inception, the company focused on providing exceptional insurance brokerage and risk management services.

Over the years, AJG has grown through a series of strategic acquisitions and expansions, positioning itself as a major player in the global insurance market. Below are some key milestones in the company's history:

• 1927: Founding Year - Arthur J. Gallagher Sr. established the company in Chicago.
• 1963: The company's leadership transitioned to Arthur J. Gallagher Jr., who continued to expand the firm's operations.
• 1984: AJG went public, listing on the New York Stock Exchange (NYSE) under the ticker symbol AJG.
• 1990s: Expansion into international markets, establishing a presence in Europe, Australia, and Canada.
• 2000s: Continued growth through strategic acquisitions, including Risk Placement Services (RPS) and other key firms.
• 2016: Acquired Crombie Lockwood and Agencies, expanding its reach in New Zealand and Australia.
• 2019: Arthur J. Gallagher & Co. entered the Fortune 500 list, recognizing its significant growth and impact in the industry.

Today, Arthur J. Gallagher & Co. operates in more than 50 countries and serves clients worldwide, offering a broad range of insurance and risk management services. The company continues to build on its rich heritage, adapting to the evolving needs of its clients and the global market.

Who Owns Arthur J. Gallagher & Co. (AJG)

Arthur J. Gallagher & Co. (AJG) is a global insurance brokerage and risk management services firm. The ownership of the company is distributed among various institutional and individual investors. Here are some of the key stakeholders:

Institutional Investors

• Vanguard Group, Inc. - One of the largest asset management companies in the world, Vanguard holds a significant stake in AJG.
• BlackRock, Inc. - Another major institutional investor, BlackRock, manages a substantial portion of AJG's shares through its funds.
• State Street Corporation - State Street is also a key institutional stakeholder with a notable share in the company.

Insiders

• J. Patrick Gallagher Jr. - Chairman, President, and CEO, J. Patrick Gallagher Jr. owns a portion of the company's shares and has significant influence over its operations.
• Other executives and board members - Various other executives and board members hold smaller but still significant amounts of AJG stock.

Alongside these major stakeholders, millions of shares are also held by retail investors who trade on public stock exchanges. This diversified ownership structure ensures that the company's governance and strategic decisions are influenced by a broad range of perspectives and interests.

Arthur J. Gallagher & Co. (AJG) Mission Statement

At Arthur J. Gallagher & Co. (AJG), our mission is to provide superior client service, exceptional risk management, and innovative insurance solutions. We are dedicated to building long-lasting relationships with our clients and stakeholders through a commitment to integrity, excellence, and teamwork. Our mission can be broken down into several key components:

• Client Service: We prioritize our clients' needs and strive to exceed their expectations. Our goal is to deliver personalized, comprehensive services that address each client's unique requirements.
• Risk Management: Through a deep understanding of risk, we offer tailored strategies and solutions to help our clients mitigate potential threats and challenges.
• Innovation: We are committed to continuous improvement and innovation, ensuring that our insurance solutions are at the forefront of industry standards and technological advancements.
• Integrity: Honesty and transparency are the cornerstones of our business. We conduct all our operations with the highest ethical standards to build trust with our clients and partners.
• Teamwork: Collaboration and mutual respect define our internal culture and our client interactions. We believe that by working together, we can achieve greater success for our clients and our organization.

These core values guide us in realizing our mission and achieving our vision of becoming the leading global insurance brokerage and risk management firm.

How Arthur J. Gallagher & Co. (AJG) Works

Arthur J. Gallagher & Co. (AJG) is a global insurance brokerage and risk management services firm. Founded in 1927, the company has grown to become one of the largest and most respected firms in the industry. Its primary business operations are designed to help clients manage their risks and insurance needs effectively.

Core Business Operations:

• Insurance Brokerage: AJG provides a broad range of insurance brokerage services, helping clients to find and purchase the insurance policies that best meet their needs. They work with multiple insurance carriers to offer a variety of coverage options.
• Risk Management: The company offers comprehensive risk management services that include risk assessment, loss control, and claims management. These services are designed to help clients minimize their exposure to potential risks and manage their claims more effectively.
• Consulting Services: AJG offers specialized consulting services such as employee benefits consulting, compensation consulting, and actuarial services. These services help clients design and implement effective employee benefit programs and manage their financial risks.

Industry Specialization:

• Healthcare: AJG provides tailored insurance and risk management solutions for healthcare providers, including hospitals, clinics, and long-term care facilities.
• Construction: The company offers specialized insurance products and risk management services for the construction industry, addressing unique risks like contractor liability, project delays, and worker safety.
• Education: AJG serves educational institutions with customized insurance programs that cover property, liability, and employee benefits to address the specific needs of schools, colleges, and universities.
• Public Sector: The company works with governments and public entities to provide risk management and insurance solutions tailored to public sector challenges.

Global Presence:

• North America: AJG has a robust presence across the United States and Canada, serving a wide range of clients from small businesses to large corporations.
• Europe: The company operates extensively throughout Europe, offering specialized services to meet the diverse needs of the European market.
• Asia-Pacific: AJG has a growing presence in the Asia-Pacific region, providing risk management and insurance services tailored to the unique market dynamics of countries in this area.

Technology & Innovation:

• Data Analytics: AJG utilizes advanced data analytics to help clients understand and mitigate risks more effectively. This includes predictive modeling and risk assessment tools.
• Digital Platforms: The company has invested in digital platforms that streamline the insurance procurement process and enhance client service delivery.

Commitment to Corporate Social Responsibility: AJG is committed to ethical business practices, sustainability, and community engagement. This includes initiatives focused on environmental stewardship, social responsibility, and governance practices.

How Arthur J. Gallagher & Co. (AJG) Makes Money

Arthur J. Gallagher & Co. (AJG) is a global insurance brokerage and risk management services firm. The company has diversified operations that generate revenue through a variety of channels. Here are some of the key ways AJG makes money:

• Insurance Brokerage: The core of AJG's business is its insurance brokerage services. The company acts as an intermediary between clients seeking insurance coverage and insurance carriers. AJG earns commissions and fees for placing insurance policies and providing advisory services. This includes both commercial and personal insurance lines.
• Risk Management: AJG offers risk management consulting services to help businesses identify, assess, and mitigate risks. The company provides tailored risk management solutions including claims management, loss control, and workplace safety programs. Revenue is generated through consulting fees and performance-based incentives.
• Employee Benefits and HR Consulting: Another significant revenue stream comes from AJG's employee benefits and human resources consulting services. The company helps organizations design, implement, and manage employee benefit programs such as health insurance, retirement plans, and wellness programs. Fees are earned for consultation, brokerage, and plan administration services.
• Wealth Management Services: Through its subsidiary, AJG also offers wealth management and financial advisory services. This includes financial planning, investment management, and retirement planning for individuals and institutions. AJG generates fees based on assets under management and advisory services provided.
• Wholesale Brokerage: AJG operates a wholesale insurance brokerage division, which specializes in finding coverage for complex and hard-to-place risks. This division serves other insurance brokers and agents, earning commissions and fees from negotiated policies.
• Reinsurance Brokerage: The company also engages in reinsurance brokerage, acting as an intermediary between insurance companies and reinsurance firms. AJG earns commissions and fees for placing reinsurance contracts, which help insurers manage their risk exposure.
• International Operations: AJG has a significant presence in international markets, contributing to its diverse revenue streams. The company's global operations provide insurance and risk management services tailored to the unique needs of different regions, contributing to both top-line growth and geographic diversification.

Overall, Arthur J. Gallagher & Co. leverages its extensive expertise in insurance brokerage, risk management, employee benefits, and financial services to generate a robust and diversified revenue stream.