AJG · 8-K · 20261029PR068263

Margin Drivers

Arthur J. Gallagher & Co. · 2026-10-29 · Importance 53 · Surprise 48

Brokerage adjusted EBITDAC increased 25% to $1.222 billion in third-quarter 2026, and its adjusted EBITDAC margin rose to 35.3% from 33.3% a year earlier. The Brokerage adjusted compensation expense ratio improved to 51.3% from 53.0%, with AssuredPartners integration and compensation savings from synergies contributing; the adjusted operating expense ratio decreased to 13.4% from 13.7%. Risk Management adjusted EBITDAC rose to $104 million from $89 million, and its adjusted EBITDAC margin increased to 22.8% from 21.9%. Risk Management’s adjusted compensation expense ratio improved to 58.6% from 59.7%, while its adjusted operating expense ratio increased to 18.6% from 18.4%, primarily reflecting additional technology investment.