Public Broker Performance Vol IV, Issue 2

Marshberry Broker Composite Index: Market Update And Q1 2025 Earnings

During the period from January 1, 2025, through May 30, 2025, six public brokers, as measured by MarshBerry’s Broker Index, outperformed both the S&P 500 Index and the Dow Jones Industrial Average (DJIA).

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). 

Q1 2025 Earnings Results

Public insurance brokers reported overall solid earnings results for Q1 2025, which were driven by stable client activity, strategic investments, and operational discipline. Organic growth figures reported in Q1 2025 by the public insurance brokers generally trended lower compared to numbers reported in the previous quarter (Q4 2024). Only AJG outperformed the previous quarter.

While most firms acknowledged a more challenging macro environment, it was not a significant focus during the earnings calls. “We’ve yet to see any meaningful changes in customer activity from tariffs or the geopolitical environment,” AJG CEO Patrick Gallagher.

• MMC’s Q1 2025 organic growth was 4%, down compared to the 7% reported in Q4 2024.
• BRO reported organic growth of 6.5% in Q1 2025, down compared to 13.8% reported in Q4 2024.
• AJG posted 9.5% organic growth in Q1 2025, up from the 7% growth reported in Q4 2024.
• WTW delivered 5% organic growth in Q1 2025, matching their 5% growth in Q4 2024.
• AON reported organic revenue growth of 5% in Q1 2025, down compared to 6% in Q4 2024.
• BWIN’s organic revenue growth was 10%, down from the 19% growth reported in Q4 2024.

Insurance Rates

Pricing commentary was largely as expected, with brokers reporting a continued softening in commercial lines, particularly in property and certain financial lines. Casualty remained firm, driven by social inflation and large jury awards. Reinsurance pricing also showed signs of competition in certain areas, though underwriters are maintaining discipline. MMCs Global Insurance Market Index showed a 3% decline in Q1 2025, another indicator of insurance pricing trends continuing to moderate.

M&A Activity

The public brokers continued to see stable levels of M&A activity in Q1 2025 and expect M&A to continue to be a growth driver in 2025.

AJG completed 11 tuck-in acquisitions totaling ~$100M of annualized revenue and finalized its acquisition of Woodruff Sawyer in early April, adding more than $250M of annualized revenue. On M&A, BRO said that pricing and terms for quality businesses remained competitive, with no material changes. MMC’s M&A activity remained focused on targeted capabilities and regional expansion, and MMC reiterated guidance for mid-single-digit underlying revenue growth for full-year 2025.

This information is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell or to participate in any particular trading strategy. Past performance is not necessarily indicative of future results.

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.