Arthur J. Gallagher & Co.

Methodology

Gallagher's insurance brokerage generates predictable commission and fee income with less volatility than underwriting insurers. Growth comes from organic client wins, new products, and strategic acquisitions. This works well for brokers where recurring revenue and acquisition integration drive consistent earnings expansion.

Methodology

Gallagher commands premium PEG ratios reflecting high-quality brokerage with consistent double-digit earnings growth. The combination of organic growth and disciplined M&A creates reliable expansion justifying elevated multiples versus carriers. Compare to Marsh McLennan and Brown & Brown to assess whether execution track record warrants the premium.

Methodology

Gallagher's modest but growing dividend complements solid earnings growth, though dividends play smaller role than for mature insurers. The company prioritizes capital toward accretive acquisitions while maintaining steady dividend increases. PEGY adds some context, but for growth-oriented brokers acquisition strategy and organic growth matter more than yield-adjusted multiples.