TacticScaleWhat Arthur J. Gallagher Does & How It Makes Money (AJG)
Updated October 2026 · reflects Arthur J. Gallagher's latest reported financials
Global insurance broker, risk consultant, and claims administrator. It earns commissions and fees for placing insurance and reinsurance and for benefits consulting in its Brokerage segment.
How Arthur J. Gallagher makes money
It earns commissions and fees for placing insurance and reinsurance and for benefits consulting in its Brokerage segment. In its Risk Management segment it earns fees for claims settlement, claims administration, loss control consulting and property appraisal services.
What Arthur J. Gallagher does
Arthur J. Gallagher & Co., founded in 1927 and headquartered in Rolling Meadows, Illinois, is a global insurance intermediary with two segments. Brokerage handles retail and wholesale insurance and reinsurance placement, helps other brokers place specialized and hard-to-place risks, and acts as a managing general agent and underwriter that distributes specialty coverages for insurers. It also provides risk-of-loss management and employer-sponsored benefits consulting. The Risk Management segment provides third-party property/casualty claims settlement and administration, along with claims management, loss control consulting and property appraisal. Gallagher does not underwrite the risk itself. It earns fees and commissions for advice, placement and administration, and it reaches clients worldwide through its own operations and a network of correspondent brokers and consultants.
Products & services
- Retail and wholesale insurance brokerage
- Reinsurance brokerage
- Managing general agent/underwriter programs
- Employee benefits consulting and administration
- Third-party claims administration
- Loss control consulting and property appraisal
What is Arthur J. Gallagher worth?
On an owner-earnings DCF, Arthur J. Gallagher's most-likely value is about $239 versus a recent price near $233 (3% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$92) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 5.4× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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