Gallagher lines up billions for M&A, millions for AI
Gallagher reported first quarter 2026 results, with combined Brokerage and Risk Management revenue up 28%, including 5% organic growth and a significant contribution from acquisitions, particularly AssuredPartners. The company also marked its 24th consecutive quarter of double digit adjusted EBITDA growth, underscoring the consistency of its model.
Pricing trends remained mixed. Property rates declined about 7%, with the most pressure on catastrophe exposed and large risks, while casualty lines continued to firm, with increases of around 4%. Workers compensation and professional lines saw more modest gains of about 2%, and E&S casualty remained firm even as E&S property became the most competitive segment.
M&A continues to be central to Gallagher’s strategy. The company currently has more than 40 term sheets in play representing roughly $400 million in annualized revenue, with deal multiples trending down. Importantly, Gallagher noted it has about $10 billion available for acquisitions over the next two years before needing to issue equity, positioning it to remain one of the most active consolidators in the space.
At the same time, the company is doubling down on AI, not as a disruption to its business model but as an accelerator.
“First, we expect AI to be minimally disruptive when it comes to selling insurance, providing consulting services and managing claims. Our business is advisory-led, complex and relationship driven. Second, AI actually should accelerate our growth. AI enhances our ability to deliver faster, higher-quality advice, and more tailored client solutions, improving our speed to market, win rates, retention and provides better client experiences.”
Gallagher emphasized that its long standing investment in data and standardized processes is now paying off.
“For more than 2 decades, we’ve standardized processes and centralized our proprietary data across the company. That foundation allows us to deploy AI today across PC claims, reinsurance benefits and mergers and acquisitions because we have embedded operational excellence into our DNA. We already have the brains and financial resources to quickly deploy AI. In our view, we’re ahead and that advantage compounds over time.”
AI is already embedded across core workflows, helping teams improve decision making and productivity.
“AI has already deployed across many of our core platforms and workflows. It helps our teams make better decisions and spend more time advising clients while continuing to raise productivity and quality. And finally, and most importantly, AI strengthens, not replaces the broker and adviser model PI is another tool that strengthens how we serve clients. It does not change the fundamental nature of our business. AI makes every single one of our professionals better at what they already do by amplifying our expertise, our data in our market access.”
The impact is showing up in sales performance. Tools like Gallagher Drive are materially improving win rates.
“When I started selling 50 years ago, my hit ratio was about 32%… before we got our tools going… about 32%. So it was all about getting at bats. With our tools now… we’re approaching 45% hit ratios when we use the tools.” – CEO J. Patrick Gallagher.
The company is also rolling out new capabilities. At RIMS, Gallagher introduced Blueprint, a tool designed to quantify and improve client risk profiles.
“Let us just show you what we do with your risk profile… today, you score on our profile 65… if you work with us… we can take that… to 87%. Now that translates directly to an improved position in the marketplace, better pricing… and bigger orders.”
Finally, its reinsurance team has a workbench product that uses AI to show clients different approaches.
Gallagher said it is investing hundreds of millions of dollars into these capabilities, positioning them as a key differentiator, particularly when competing against smaller brokers.
“These tools, we’re spending hundreds of millions of dollars, and they’re really getting traction.”
