Arthur J. Gallagher & Co. Quarterly Investor Meeting with Management June 17, 2026

Good morning, thank you for joining us. We hold this meeting to give the investment community a chance to hear from our business leaders and better understand what continues to drive Gallagher's growth and long-term value creation. Outside of the busy earnings season, it serves as a primer for new investors. I'll discuss Gallagher's strategic pillars and why we believe we are very well positioned to grow revenues and improve profitability. I'll give an update on the insurance market and economic conditions. After me, you'll hear from our business leaders discussing their businesses, markets, trends, growth opportunities, and operating initiatives, including specific examples of how they're using AI and how they see the second quarter developing. Our CFO will provide more detail on Q1 results and the financial outlook. One of the questions I hear most often is why Gallagher continues to grow across different market environments and outpace the industry over time. The answer lies in our strategies that have stayed consistent for decades. First, organic growth. Even after growing organically by over $1 billion and acquiring more than $4 billion in annualized revenue since 2020, we still touch less than 5% of the global insurance market. The industry is highly fragmented. Second, mergers and acquisitions. The opportunity remains substantial because insurance distribution remains highly fragmented worldwide. So far this year, we've completed 15 mergers representing around $200 million of estimated annualized revenue. Our pipeline includes 40 term sheets signed or being prepared, representing around $200 million of annualized revenue. We remain disciplined on valuation and focused on culture. Third, increasing productivity and raising quality. More than two decades ago, we began building our Centers of Excellence, where today over 18,000 colleagues handle many of our back-office and client servicing activities through standardized processes and common systems. This work is important for our AI differentiation. The differentiator is not simply that we are using AI today — it's that we built the foundation over many years with standardized workflows, clean data, and a global operating model. That foundation allows us to move with speed and consistency as we deploy AI across the business. AI is not a future initiative for Gallagher — it's already integrated in how we operate, how we support our professionals, and how we serve our clients. We're embedding AI in practical, workflow-driven ways across brokerage, claims, benefits, reinsurance, and M&A, with a consistent focus on improving speed, insight, and execution. In brokerage, AI is reducing the time required to analyze carrier quotes, summarize loss data, and prepare renewals. In claims, we're using AI to identify severity and litigation earlier. Importantly, AI makes our brokers, consultants, and claim professionals more effective — it does not replace them. As risks become more complex, clients continue to need judgment, advice, advocacy, and market access. Now let me update you on the insurance market and economic conditions. Property lines are seeing premium decreases, down approximately 9% year over year. Casualty lines are up about 5%, including general liability up 1%, commercial auto up 4%, and umbrella up 8%. Overall, property premium changes are up about 3%, with stronger increases in U.S. international markets. We see meaningful differences by account size, with property risks facing the most pressure. Mid-month revenue, audits, and cancellations are in positive territory, continuing to point to solid underlying activity for the quarter. In the U.S., the number of jobs is ahead of the number of people working. Healthcare costs continue to trend higher due to innovative medical treatments and prescription drug costs. Employers are continuing to look for cost-effective ways to support their human capital needs. Overall, these indicators suggest underlying market conditions that support our business and continue to support our growth expectations for 2026. Let me preview what you'll hear from each of our business leaders. Mike will discuss our Americas PC and specialty operations — how scale, niche expertise, data, and technology help us win in the marketplace. Patrick will discuss our international PC, London specialty operations, our global platform, digital ecosystem, and specialized expertise. Tom will discuss Gallagher Re and our global M&A strategy. Our benefits leader will walk through employee benefits, HR consulting, and operations. Scott will discuss our risk management business. And our CFO will bring it all together financially. I'll now turn to more detail on our organic growth. Our combined brokerage and risk management operations are on track to deliver full-year 2026 organic growth of about 6%. We have deep capabilities in advisory across more than 72,000 colleagues. Insurance is one of the most essential products in the global economy — it touches just about every sector, all of which have increasing risk and greater complexity. We estimate more than $8 trillion in insurance premiums globally. Contributing to broader market growth is the ever-increasing size and complexity of risk, meaning insurers need our expertise more and more. Emerging technologies, energy transition, and cyber threats all require specialized expertise, better data, and more sophisticated placement. Today you'll hear from the team how we have industry-leading talent with deep expertise across products and geographies, a consistent approach to sales and service, and an ever-increasing global brand. Those strengths are reinforced by the scale of our Centers of Excellence and the technology and AI capabilities we continue to build. You'll also hear about the diversity of our model, with operations across P&C retail, wholesale, benefits, reinsurance, and claims — each with different growth drivers and sensitivity to market cycles. Another way we create long-term value is through mergers and acquisitions. When firms join Gallagher, they get immediate access to expertise, carrier insights, digital and AI tools, thought leadership, a recognized brand, and elevated service from our Centers of Excellence. It also strengthens Gallagher through the addition of talented producers, specialized expertise, and local market relationships.

When asked what investors are missing about what drives Gallagher's growth, Gallagher responded: There is underappreciation in the marketplace of the consistency of our execution — that's probably more than anything else. In our business, new business matters. Having boots on the ground, bringing customers in, makes a difference. Retention matters. Diversification matters. And I think some people just focus too much on the cycle. I've heard so many industry observers just say, 'Well, the cycle is softening, here we go, we're out of brokers.' And they're not looking at the actual growth that we're delivering to our shareholders.

When asked why Gallagher is not worried about AI having a disruptive impact on organic growth and why it helps the model: Look, the world is just getting more complex, and that is what drives an advisory-based business — and that's what we are. We already know AI can improve analysis and workflow, but it doesn't replace judgment, trusted advice, market access, or insight. So a client buying a complicated coverage placement that's tough and complex still wants an advocate in the middle. That's why AI is a real enhancer to the broker model, not a disintermediator.

When asked about the M&A environment and whether valuations are even becoming more compelling: Our approach has not changed over 20 years. The market is competitive. Our discipline matters. We concentrate very closely on culture and cultural fit — that's been a very big part of our success over the years. We continue to see a very healthy pipeline. Our standards are the same: we want strategic fits, we want people who love the business, who can run a good business, who fit culturally. That's what creates value.

When asked about buybacks versus M&A at current valuation levels: Listen, you've heard me say this in other situations. If we buy back shares of stock, we get a nice picture of our Gallagher, who's a hell of a salesman. But I tend to favor trying to get more boots on the ground, get new partners, get new ideas, get new geographies, get new niches. We're buying brains, we're not buying businesses. And those brains that have the opportunity to trade with ourselves, work with our wholesales, work with London, work with Gallagher Bassett, work with our captives — there is a safety opportunity in buying back shares that we think are undervalued, but this is a business that's growing so much. We're placing $4 billion a year in premium. We need more boots on the ground, and we get that organically through our internship program and through nice tuck-in acquisitions. It's a tradeoff that we balance, but I tend to favor growing our business rather than contracting it.

When an analyst asked about brokerage organic growth and whether the expected pickup in the second half is still expected from incremental reinsurance demand during midyear renewals: Yes, we're still seeing that happening. In fact, we're seeing across all of our business that customers are opting to buy more insurance. The third quarter might be a touch higher than the fourth quarter when we look at how it rolls in. If it's 5 or 6% each of the next two quarters — maybe we'll get six in the third and four in the fourth, or seven and five, something like that. But there's not that kind of wide variance around our expectation by quarter.

When an analyst from Capital Markets asked about organic growth decoupling from pricing and whether Gallagher expects pricing to stabilize: As we look out for the year, the 5% number is assuming about a point from rate, maybe half a point or so from exposure unit growth, maybe a full point there, and we have a forward thrust of about gaining share of about 3%. On property, we're getting through the heavy property renewal season right now. We are assuming property will continue to move lower somewhat throughout the year. We haven't started looking at next year yet, but sitting where we are right now, I'm not seeing a huge slide in 2027 as much as we've seen property come down between 2024 and 2025 and 2025 and 2026. It's been sequentially going down about 10% each year. I don't think there's another 10% coming out of this market next year overall. Durational property is also not coastal-exposed property. You've got a lot of non-cat-exposed property that still sees issues with convective storms. So I would not expect the property market in 2027 to have a similar downstep.

Gallagher added: I think another year of the fact that some of the return expectations that maybe these producers were expecting in their current homes — if they have any type of equity — aren't coming through. I think we're going to have more and more opportunities because they just can't wait for point-of-sale capabilities to better themselves. They can sit at their old firms for a long time and never get the sales enablement tools that we have. I think we win there. And London is pretty frothy right now — there's a lot of change and a lot of movement going on, and I think we're the calm harbor.

Gallagher added on inflation: I think inflation causes pressure on replacement cost and placement value. You've heard me speak before that I'm not completely convinced the carriers are done with their march to get properly paid on replacement cost across the spectrum. I think inflation puts pressure on medical costs. I think inflation puts pressure on replacement cost on liability settlements. Clients struggle with the impact of inflation because their premiums go up, and that's where we're there to help them. I think there could be inflation pressures but I'm not completely convinced the business can't handle that in terms of premium rates. It might put a floor in some of the rate-cutting pressure and competition out there pretty quickly. One last thing before we get to my final remarks: it's really been interesting to me to look at our data — which I think is sensational data — on our cancellations, our audits, and what's actually happening in our book of business. The resiliency of the middle market accounts, literally across the world — you keep seeing things, we've got a war in Iran, we've got Israel and Lebanon going at each other, and you expect, 'Oh my God, business has got to slow down.' But the middle market just keeps on keeping on.

Thank you again everybody for joining us this morning. I think you've heard today loud and clear that we are confident in our ability to execute and believe that we're very well positioned for long-term growth. We look forward to speaking with you again after our second quarter earnings call this summer.