Public Broker Performance Vol IV, Issue 1
MarshBerry Broker Composite Index: Market Update and Q4 2024 Earnings
During the period from January 1, 2025, through February 28, 2025, six public brokers, as measured by MarshBerry’s Broker Index, outperformed the Dow Jones Industrial Average (DJIA) and S&P 500 Index.
The following publicly traded insurance brokers are included in the Broker Index: Arthur J. Gallagher & Co. (AJG), Aon plc. (AON), Brown & Brown, Inc. (BRO), Marsh & McLennan Companies, Inc. (MMC), Willis Towers Watson Public Limited Company (WTW) and The Baldwin Group (BWIN).
14.1%
Broker Composite
3.0%
DJIA
1.2%
S&P 500
Q4 2024 Earnings Results
The largest public insurance brokers reported overall positive earnings results for Q4 2024, which were attributed to a combination of sharpened strategic focus, solid organic growth rates, and robust M&A activity. Organic growth figures reported in Q4 2024 were generally in-line with those reported in Q3 2024. Most brokers reported organic growth rates in a range of 5%-14%.
- MMC’s Q4 2024 organic growth was 7%, compared to 5% in Q3 2024, and 6% in Q2 2024.
- BRO reported organic growth of 13.8% in Q4 2024, compared to 9.5% in Q3 2024.
- AJG: For the firm’s combined brokerage and risk management segments, AJG posted 7% organic growth, one percentage point above the firm’s Q3 2024 organic growth of 6%.
- WTW delivered 5% organic growth in Q4 2024, compared to 6% in Q3 2024.
- AON reported organic revenue growth of 6% in Q4 2024, compared to 7% in Q3 2024.
- BWIN organic revenue growth was 19%, higher than Q3 2024 growth of 14% and equal to Q2 2024 growth of 19%.
Insurance Rates
Global commercial insurance rates declined by 2% in Q4 2024, after a 1% decline in Q3 2024, according to the Marsh Global Insurance Market Index. The decline in Q3 was the first decrease in the composite rate in seven years. Drivers of the decrease include greater competition in commercial property insurance, moderating casualty rate increases, and rate decreases in cyber. Global property rates were down 3% in Q4 2024 versus 2% in Q3 2024. Workers’ compensation decreased in the mid-single digits during the fourth quarter. Global financial and professional liability rates were down 6%, while cyber decreased 7%. In reinsurance, underwriting discipline persisted, and capacity increased at a more significant pace than client demand.
BRO noted that for Q4 2024 insurance rates for most lines continued to increase but they are moderating downward compared to last quarter and last year.
M&A Activity
The public brokers continued to see brisk M&A activity in Q4 2024 and expect M&A to continue to be a growth driver in 2025.
AJG completed 20 new “tuck-in” mergers in Q4 2024 representing approximately $200 million of estimated annualized revenue, with a large acquisition in December when AJG signed an agreement to acquire AssuredPartners with $2.9 billion of annual pro forma revenue. In addition to the AssuredPartners acquisition, AJG had approximately 45 term sheets being signed and prepared, representing around $650 million of annualized revenue.
BRO also remains active in M&A. BRO acquired 10 companies comprising $137 million in annual revenue in the fourth quarter. “From an overall market perspective, competition remains fierce for high-quality businesses, and we’re starting to see more activity from financial sponsors for the smaller and midsized deals as interest rates are beginning to decrease,” said CEO, President, and Director J. Powell Brown on the earnings call.
Public Broker Comps
The MarshBerry Broker Index is a composite of market data on the following companies, sourced from Yahoo Finance: BWIN, BRO, AON, AJG, MMC, WTW. It is prepared for analytical purposes only. This information is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy.
This earnings summary has been prepared by Marsh, Berry & Co., LLC. and is not intended to provide investment recommendations on any company. It is not a research report, as such term is defined by applicable laws and regulations, and it does not contain sufficient information upon which to make an investment decision. These materials are based solely on information contained in publicly available documents and Marsh, Berry & Co., LLC has not independently attempted to investigate or to verify such information.
Sources: S&P Global, Company Reports; Results as of Q4 2024.