Gallagher’s first-quarter revenue hit $US2.8 billion ($4.12 billion) as the broker says its Property & Casualty operations in Australia and New Zealand posted organic revenue growth of 10%, and renewal premium increases locally were ahead of the same period a year earlier.

Chairman, President and CEO J. Patrick Gallagher says it was "an excellent start to 2023”.  
“Our core brokerage and risk management segments combined to post 12% reported revenue growth,” he said.

Renewal premiums across all regions were up more than 9%, and the broker expects insurance and reinsurance pricing increases to continue throughout 2023 and beyond. 

“The property reinsurance market is very hard and we are seeing tighter terms and conditions across a broader range of territories,” Mr Gallagher said. "We expect insurance and reinsurance pricing increases to continue throughout 2023. 

"Looking forward, there's good reason to expect a cautious underwriting stance from carriers for the foreseeable future as they contemplate recent weather events, replacement cost increases, social inflation and ongoing geopolitical tensions.”

Gallagher’s brokerage revenue rose to $US2.4 billion ($3.55 billion) in the first quarter, up from $2.1 billion ($3.11 billion) a year earlier, while net earnings rose to $515.3 million ($762.92 million).

Renewal premium increases remained broad-based across nearly all major geographies and product lines, with most trending similar to previous quarters but property-renewal premium increases accelerating to be up 15% in the first quarter.

"Our clients continue to feel cost pressures here due to rising replacement values, increasing frequency and severity of weather-related events and hard reinsurance conditions. We're not seeing signs these costs and profitability pressures are likely to abate in the near term,” Mr Gallagher said. 
“I don't see a lot of difference between what's going on in the US and what's going on in Canada, New Zealand, Australia, and the UK. It's pretty close.”