Arthur J. Gallagher & Co. Website

Arthur J. Gallagher & Co.

NYSE-AJG

Company Overview

Arthur J. Gallagher & Co., together with its subsidiaries, provides insurance brokerage, consulting, third-party claims settlement, and administration services in the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. It operates through Brokerage and Risk Management segments. The Brokerage segment consists of retail and wholesale insurance brokerage operations; assists retail brokers and other non-affiliated brokers in the placement of specialized and hard-to-place insurance; acts as a brokerage wholesaler, managing general agent, and managing general underwriter for distributing specialized insurance coverage's to underwriting enterprises. This segment also performs activities, including marketing, underwriting, issuing policies, collecting premiums, appointing and supervising other agents, paying claims, and negotiating reinsurance; and offers brokerage and consulting services to businesses and organizations, including commercial, not-for-profit, and public entities, as well as individuals in the areas of insurance placement, risk of loss management, and management of employer sponsored benefit programs. The Risk Management segment provides contract claim settlement and administration services to enterprises and public entities; and claims management, loss control consulting, and insurance property appraisal services. The company offers its services through a network of correspondent insurance brokers and consultants. It serves commercial, industrial, public, religious, and not-for-profit entities. The company was incorporated in 1927 and is headquartered in Rolling Meadows, Illinois.

  • Name

    Arthur J. Gallagher & Co.

  • CEO

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  • Website

    www.ajg.com

  • Sector

    Insurance

  • Year Founded

    1927

Company Statistics

Profile

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Financial Health

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Dividends

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Bulls Say

  • The stability of its brokerage operations makes Gallagher a relatively steady producer of free cash flow.

  • With the insurance brokerage industry still fragmented, Gallagher should have plenty of opportunities to roll up smaller brokers.

  • Compared with larger peers, Gallagher remains relatively focused on insurance brokerage, which we view as the most attractive aspect of its business.

Bears Say

  • Gallagher's established position in a relatively mature market lowers its long-term organic growth prospects.

  • Most of Gallagher’s free cash flow is devoted to acquisitions, which leaves the company’s long-term success tied to continually finding good M&A opportunities.

  • The Gallagher family maintains a strong presence in the management team, but its ownership interest is very limited.

Source: Morningstar Analysis - Oct 30, 2025

What's happening

Nov 19, 2025 - Dec 19, 2025

Arthur J. Gallagher & Co. Faces Significant Stock Decline Amid Analyst Downgrades

  • Multiple analyst downgrades have negatively impacted investor sentiment towards AJG.
  • Insider trading activity raised concerns about executive confidence in the company's future performance.
  • A recent acquisition announcement failed to mitigate bearish trends reflected in analyst ratings.

Over the past month, Arthur J. Gallagher & Co. (AJG) experienced a decline of 3.0% in its stock price, significantly underperforming the S&P 500, which recorded a gain of 1.7%. This resulted in an underperformance of -4.7% relative to the S&P 500 and highlighted a concerning trend for AJG as it lagged behind both the broader market and the Financials sector (XLF), where it underperformed by -9.1%.

The negative sentiment surrounding AJG was largely driven by multiple analyst downgrades that occurred during this period, particularly on December 17 when UBS and Evercore ISI Group issued revisions that contributed to bearish outlooks on the stock's performance; UBS maintained a Neutral rating while lowering its price target from $329 to $285, whereas Evercore reduced its target to $334 but kept an Outperform rating.

Prior to these downgrades, Mizuho initiated coverage with a Neutral rating and set a lower price target at $276 on December 16, coinciding with another drop of approximately 2.4% in stock value that day alone due to ongoing adjustments made by various analysts regarding their expectations for AJG’s valuation amidst evolving market conditions.

Additionally, insider trading activity raised eyebrows when Cary Richard C., Controller and Chief Accounting Officer at AJG sold shares shortly before these downturns became apparent—an action often interpreted negatively by investors as it may signal lack of confidence among company executives regarding future performance prospects.

The company's recent acquisition announcement on December 2 involving UK-based First Actuarial aimed at enhancing pension service capabilities did little to offset prevailing bearish trends reflected in analyst ratings and executive actions throughout this period.

NYSE:AJG