
Arthur J. Gallagher & Co. has faced a data breach lawsuit, which is a significant challenge for the company. The lawsuit was filed due to a data breach that exposed sensitive information.
The company's financial growth is a notable aspect of its operations. Arthur J. Gallagher & Co. has expanded its services and operations through strategic acquisitions.
Arthur J. Gallagher & Co. has made significant strides in its financial growth, with revenue increasing to $9.7 billion in 2020. This growth has allowed the company to expand its services and operations.
The company's financial growth has also led to increased profitability, with net income rising to $532.1 million in 2020.
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Data Breach and Lawsuit
A data breach occurred at Arthur J. Gallagher in 2020, exposing sensitive information including Social Security numbers and credit card details belonging to customers and employees.
The breach happened over several months, and Gallagher didn't notify customers until June 2021, nearly a year after the breach occurred.
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This delay allowed the compromised data to be potentially misused, increasing the harm to victims. The lawsuit brought against Gallagher consolidated multiple claims of negligence, breach of contract, and violations of state privacy laws.
The breach affected 3.5 million individuals, and for many class members, the delay in notification exacerbated the damage, as the stolen information could have been used in fraudulent activities.
Gallagher's delayed response in notifying those affected highlights the importance of companies acting swiftly and transparently when a breach occurs.
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Company Performance
Arthur J. Gallagher & Co. has consistently demonstrated strong financial performance over the years.
In Q3 2021, the company reported a significant increase in earnings, reflecting its ability to adapt to changing market conditions.
The period ending September 30, 2021, saw a substantial rise in revenue, driven by the company's strategic expansion efforts.
Arthur J. Gallagher & Co. has a history of delivering solid financial results, with each quarter showcasing its resilience and growth potential.
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In Q1 2021, the company's earnings call highlighted a notable increase in net income, indicating a strong start to the year.
The period ending March 31, 2021, marked a significant milestone for the company, with its revenue growth outpacing industry averages.
Arthur J. Gallagher & Co.'s financial performance is a testament to its effective management and strategic planning.
In Q4 2020, the company reported a slight decrease in earnings, but still managed to maintain a strong market position.
The period ending December 31, 2020, saw a modest decline in revenue, but the company's diversified portfolio helped mitigate the impact.
Arthur J. Gallagher & Co.'s ability to navigate challenging market conditions is a key factor in its sustained financial success.
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Mergers and Acquisitions
Arthur J. Gallagher & Co. has been actively expanding its operations through mergers and acquisitions. The company acquired Grupo Case Beneficios e Seguros on February 27, 2025.
Some notable deals include the acquisition of Agilis Partners LLC and Falcone Associates Inc, both completed on February 18 and 3, 2025, respectively. These deals demonstrate the company's strategic growth.
Here are some key details about the acquisitions:
Mergers & Acquisitions
Arthur J. Gallagher has been on a buying spree, acquiring several companies in recent months. The most notable deals include Grupo Case Beneficios e Seguros, Agilis Partners LLC, Falcone Associates Inc, Dominick Falcone Agency Inc, and Wealth Management Partners Pty Ltd.
These acquisitions were completed in a relatively short period, with the first deal announced on February 27, 2025, and the last on January 10, 2025. The companies were acquired for various percentages of AJG:NYQ, with the highest percentage being 18.30% for Wealth Management Partners Pty Ltd.
Here's a breakdown of the deals:
One notable deal that stands out from the rest is the acquisition of Bollinger Insurance Brokerage, which will cost $276.5 million in cash and stock.
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Stock and Dividends
Analysts' consensus rating for Arthur J. Gallagher & Co. is Hold, with an average price target of $301.45, representing a potential upside of 2.52% for AJG shares.
The company has maintained its quarterly dividend at $0.35 since 2000, making a payout every quarter.
AJG shares have seen significant returns, with a 1-year return of +33.95% and a 5-year return of +212.67%.
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Top-Growing Insurance Broker Stocks
The world of insurance broker stocks can be complex, but let's break it down. Arthur J. Gallagher & Co. is a top player in this space, with a proven track record that's hard to ignore.
Analysts are generally bullish on AJG stock, with a consensus rating of Hold based on recent Buy, Hold, and Sell ratings. This suggests a neutral outlook, but with a potential upside of 2.52% if the stock reaches its average price target of $301.45.
If you're looking for a stock with a proven track record, AJG is definitely worth considering. Over the past year, the company's shares have increased by 33.95%, significantly outpacing the S&P's 23.12% gain.
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Here's a quick comparison of AJG's performance against the S&P over the past few years:
As you can see, AJG has been on a tear, with a 5-year return of 212.67% and a 5-year annualized return of 25.61%. This is a remarkable performance, and one that's likely to continue as the company continues to grow and expand its operations.
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Quarterly Dividend Remains at $0.35
Arthur J. Gallagher has been consistent with its quarterly dividend payments, maintaining a payout of $0.35 since 2000.
This shows a commitment to returning value to shareholders, which can be a positive sign for investors.
The company has made a payout every quarter since 2000, demonstrating a reliable track record.
This level of consistency can be reassuring for investors looking for stability in their dividend income.
Frequently Asked Questions
What does Arthur J Gallagher & Co do?
Arthur J Gallagher & Co provides insurance brokerage, risk management, and claims settlement services to clients worldwide. They offer a range of services including insurance brokerage, consulting, and administration.
How many employees does Arthur J Gallagher and Co have?
As of December 31, 2023, Arthur J. Gallagher & Co. has approximately 52,000 employees. This number represents a significant increase from the previous year.
What is the Arthur J Gallagher lawsuit?
Arthur J. Gallagher & Co. faced a $21 million class action lawsuit over a 2020 data breach that exposed sensitive employee and client information. The lawsuit alleged the company failed to prevent the breach.
Who owns Arthur J. Gallagher?
Arthur J. Gallagher is primarily owned by institutional investors (46.41%), with smaller percentages held by insiders (1.04%) and public companies and individual investors (19.50%). The majority of the company's stock is held by large investment groups and organizations.
Sources
- https://www.justice4you.com/blog/attorney-anderson-berry-21m-data-breach-settlement-arthur-j-gallagher.html
- https://markets.ft.com/data/equities/tearsheet/profile
- https://www.tipranks.com/news/arthur-j-gallagher-co-ajg-inks-massive-13-45b-deal-for-assuredpartners
- https://www.prnewswire.com/news-releases/arthur-j-gallagher--co-announces-8-5-billion-common-stock-offering-302326071.html
- https://www.fool.com/quote/nyse/ajg/
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