Management: Dynamic international chief executive David Ross is on a mission to make the UK operation of US giant Gallagher a major force in British broking. He’s well on the way – the £97m acquisition in May of Heath Lambert has parachuted the company into this year’s top 10.
The board meetings between smooth-talking Ross and Heath Lambert’s down-to-earth boss Adrian Colosso should be interesting. Gallagher chopped director pay and bonuses at its newly acquired company, and there have been a number of personnel changes.
Strategy: Gallagher says that Heath Lambert will produce earnings of $30m (£18.1m) by 2013, slightly less than the $33m announced in May. Arthur J Gallagher is not doing badly itself. It made a net profit of $56.9m in the first half of 2011, although this was down 22% on the $73.2m made in the same period last year.
Gallagher’s broking division recorded EBITDAC (earnings before interest, income taxes, depreciation, amortisation and the change in estimated acquisition earn-out payables) of $145.5m in 2011’s first half, up 2% on the $142.9m made in H1 2010.
Big story: Gallagher looks set for a second monster acquisition. It is in talks with Oxygen having bought the broker’s MGA arm, Oxygen Insurance Managers, back in September 2008. Gallagher’s name has also been linked with players as big as Oval.
Arthur J Gallagher Branches
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