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Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2004 Financial Results

ITASCA, Ill., Jan 25, 2005 /PRNewswire-FirstCall via COMTEX/ -- Gallagher today reported its financial results for fourth quarter and year ended December 31, 2004. A printer-friendly format is available at http://www.ajg.com .

Quarter Ended December 31
                                                               Diluted Net
                              Revenues     Net Earnings     Earnings Per Share
     Segment         4th Q 04 4th Q 03 Chg 4th Q 04 4th Q 03 4th Q 04 4th Q 03
                       ($ in millions)       ($ in millions)

     Brokerage        $256.0   $235.4   9%   $41.5    $39.8    $0.44    $0.43
     Risk Management    96.7     83.7  16%    13.5      8.1     0.14     0.09

     Brokerage & Risk
      Management       352.7    319.1  11%    55.0     47.9     0.58     0.52

     Financial
      Services          34.2     21.2   -     (5.9)     1.3    (0.06)    0.01
     Impact of FIN 46    -       25.2   -      -        -        -        -

     Total Company    $386.9   $365.5   6%   $49.1    $49.2    $0.52    $0.53


     Year Ended December 31

                                                              Diluted Net
                             Revenues        Net Earnings  Earnings Per Share
     Segment         Year 04  Year 03  Chg  Year 04  Year 03  Year 04  Year 03
                      ($ in millions)       ($ in millions)

     Brokerage        $926.4   $848.5   9%  $148.2    $130.2   $1.56    $1.40
     Risk Management   372.6    321.7  16%    48.1      32.5    0.51     0.35

     Brokerage & Risk
      Management     1,299.0  1,170.2  11%   196.3     162.7    2.07     1.75

     Financial
      Services         111.4     47.2   -     (7.8)    (16.5)  (0.08)   (0.18)
       Impact of
        FIN 46          69.9     46.4   -      -         -       -        -

     Total Company  $1,480.3 $1,263.8  17%  $188.5    $146.2   $1.99    $1.57

"Despite the softening rates in the insurance marketplace and the disruptions in our industry resulting from the ongoing investigations by state attorneys general and other regulatory agencies, Gallagher had another strong year," said J. Patrick Gallagher, Jr., President and Chief Executive Officer. "On a combined basis, our Brokerage and Risk Management segments posted excellent results for the year:

-- 18% growth in diluted net earnings per share,
    -- 11% growth in revenues, of which 6% is organic,
    -- 14% growth in pretax earnings, and
    -- 18% pretax margin, a 0.5 % improvement over 2003, despite margin drag
       of 0.3% related to expensing stock-based compensation, 0.3% related to
       foreign currency translation, 0.3% related to external Sarbanes-Oxley
       404 implementation costs and 0.1% related to professional fees
       associated with recent insurance industry regulatory developments."


    Brokerage & Risk Management Segments Combined Fourth Quarter Highlights
    -- 12% growth in diluted net earnings per share.
    -- 11% growth in revenues, of which 3% is organic.
    -- 9% growth in pretax earnings.
    -- 19% pretax margin, despite margin drag of 0.5% related to external
       Sarbanes-Oxley 404 implementation costs, 0.5% related to professional
       fees associated with recent insurance industry regulatory developments,
       0.5% related to increased amortization expense and 1.0% due to the
       compensation related matters discussed below in the Brokerage Segment
       Highlights.


    Brokerage Segment Fourth Quarter Highlights
    -- 2% growth in diluted net earnings per share.
    -- 9% growth in revenues, of which -1% is organic.
    -- 20% pretax margin, despite margin drag of 0.6% related to external
       Sarbanes-Oxley 404 implementation costs, 0.6% related to professional
       fees associated with recent insurance industry regulatory developments,
       0.6% related to increased amortization expense, and the compensation
       related items discussed below.
    -- Fourth quarter 2004 compensation ratio was 3.6% higher than fourth
       quarter 2003.  A significant portion of the increase results from
       foreign currency translation of 0.4%, one-time charges related to
       staffing changes made in Gallagher's London operations of 1.1% and 0.3%
       related to compensation levels of acquired operations.
    -- Closed five acquisitions and the pipeline remains strong.
    -- Contingent commissions were $8.2 million in fourth quarter 2004 versus
       $7.9 million in fourth quarter 2003.  As previously announced,
       Gallagher will not enter into any new volume-based or profit-based
       contingent commissions agreements as a retail broker effective
       January 1, 2005.  Accordingly, it is expected that future contingent
       commission revenues could be substantially reduced.


    Risk Management Segment Fourth Quarter Highlights
    -- 55% growth in diluted net earnings per share.
    -- 16% growth in revenues; 15% growth in fees, all of which is organic.
    -- 58% growth in pretax earnings.
    -- 18% pretax margin.


    Financial Services Segment Highlights
    -- During its third quarter conference call, Gallagher provided earnings
       guidance stating that the Financial Services Segment would report a
       loss of three to four cents per share in fourth quarter 2004.  Actual
       results differed primarily because one Syn/Coal plant that generates
       installment sale gains was idle for approximately three weeks during
       the quarter due to equipment breakdowns and delays in the receipt of
       coal stock shipments.
    -- Synthetic fuel production in 2004 was ahead of prior year, resulting in
       a 20% effective tax rate for the company in 2004 versus 24% in 2003.
    -- Adoption of FIN 46 - In third quarter 2003, Gallagher adopted a new
       accounting pronouncement, FASB Interpretation No. 46 (FIN 46) -
       "Consolidation of Variable Interest Entities," which required the
       company to consolidate one investment not previously consolidated
       because the company does not control the investment through a majority
       voting interest.  Previously reported financial statements were not
       restated for the adoption of FIN 46.  During third quarter 2004,
       Gallagher sold a portion of its interest in this investment, which
       eliminated the requirement to consolidate the investment under the
       FIN 46 rules.  This investment is now accounted for using equity method
       accounting.


    Legal Developments
    As announced in its third quarter earnings conference call, in response to
    industry developments, Gallagher retained independent counsel to perform
    an internal review of certain of its business practices.  Such independent
    counsel has completed its internal review and has found no evidence that
    Gallagher had engaged in any price fixing or bid rigging of the type
    alleged in the New York Attorney General 's October 14, 2004 complaint
    against Marsh & McLennan Companies, Inc. nor has it engaged in any
    improper tying arrangements.  However, as part of insurance industry-wide
    investigations, Gallagher remains the subject of investigations and
    regulatory proceedings by authorities in fifteen states investigating
    certain of its business practices, including the receipt by Gallagher of
    contingent commissions.  Gallagher is also a defendant in eight lawsuits
    brought by private litigants which relate to these practices.  Gallagher
    cannot predict the outcome of these investigations, regulatory
    proceedings, and lawsuits, nor their effect upon Gallagher's business or
    financial condition.

    In addition, previously reported litigation involving synfuel technology
    reached the trial stage this month with a result expected in February
    2005.  The plaintiff seeks damages from Gallagher's subsidiary, AJG
    Financial Services, Inc., in the amount of $140 million as well as a
    declaratory judgment that payments would be owing on future synfuel
    production through the end of 2007.  AJG Financial Services, Inc. seeks
    damages in its counterclaim in the amount of $71 million. While management
    continues to believe the plaintiff's claims lack merit, the outcome of
    this trial cannot be predicted.

    The company will host a webcast conference call on Wednesday, January 26,
    2005 at 9:00 a.m. ET to further discuss these quarterly results.  To
    listen, please go to http://www.ajg.com .

Arthur J. Gallagher & Co., (NYSE: AJG) an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in eight countries and does business in more than 100 countries around the world through a network of correspondent brokers and consultants. Gallagher is traded under the symbol "AJG" on the New York Stock Exchange.

This press release may contain certain forward-looking statements relating to future results. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expected, depending on a variety of factors such as changes in worldwide and national economic conditions, changes in premium rates and in insurance markets generally and changes in securities and fixed income markets as well as developments in the area of tax legislation. Please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, for a more detailed discussion of these factors.

Arthur J. Gallagher & Co.
                         Segment Statement of Earnings
                (Unaudited - in millions except per share data)

                                          4th Q   4th Q    Year     Year
                                          Ended   Ended    Ended    Ended
                                         Dec 31, Dec 31,  Dec 31,  Dec 31,
    BROKERAGE SEGMENT                      2004    2003    2004     2003

    Commissions                           $215.0  $202.9   $801.9   $746.2
    Fees                                    45.7    40.4    152.4    135.5
    Investment income - fiduciary            5.1     2.3     13.4      7.5
         Gross revenues                    265.8   245.6    967.7    889.2
    Less brokerage                          (9.8)  (10.2)   (41.3)   (40.7)
         Revenues                          256.0   235.4    926.4    848.5

    Compensation                           148.9   128.6    532.8    482.1
    Operating                               47.1    48.3    177.5    172.2
    Depreciation                             3.3     3.1     12.9     12.1
    Amortization                             4.9     3.0     18.1      9.8
         Expenses                          204.2   183.0    741.3    676.2

    Earnings before income taxes            51.8    52.4    185.1    172.3
    Provision for income taxes              10.3    12.6     36.9     42.1
    Net earnings                           $41.5   $39.8   $148.2   $130.2

    Diluted net earnings per share         $0.44   $0.43    $1.56    $1.40
    Growth - revenues                         9%     10%       9%      15%
    Organic growth in commissions and
     fees  (1)                               -1%      6%       2%      10%
    Growth - pretax earnings                 -1%     13%       7%      16%
    Compensation expense ratio               56%     52%      55%      54%
    Operating expense ratio                  18%     20%      18%      19%
    Pretax profit margin                     20%     21%      19%      19%
    Effective tax rate                       20%     24%      20%      24%

    RISK MANAGEMENT SEGMENT

    Fees                                   $96.1   $83.4   $370.9   $320.7
    Investment income - fiduciary            0.6     0.3      1.7      1.0
         Revenues                           96.7    83.7    372.6    321.7

    Compensation                            52.3    46.7    202.6    178.7
    Operating                               25.2    23.9    100.0     90.6
    Depreciation                             2.2     2.3      9.4      9.4
    Amortization                             0.1     0.1      0.4      0.1
         Expenses                           79.8    73.0    312.4    278.8

    Earnings before income taxes            16.9    10.7     60.2     42.9
    Provision for income taxes               3.4     2.6     12.1     10.4
    Net earnings                           $13.5    $8.1    $48.1    $32.5

    Diluted net earnings per share         $0.14   $0.09    $0.51    $0.35
    Growth - revenues                        16%     16%      16%      14%
    Organic growth in fees  (1)              15%     16%      16%      14%
    Growth - pretax earnings                 58%    110%      40%      36%
    Compensation expense ratio               54%     56%      55%      56%
    Operating expense ratio                  26%     29%      27%      28%
    Pretax profit margin                     18%     13%      16%      13%
    Effective tax rate                       20%     24%      20%      24%

    BROKERAGE & RISK MANAGEMENT COMBINED

    Commissions                           $215.0  $202.9   $801.9   $746.2
    Fees                                   141.8   123.8    523.3    456.2
    Investment income - fiduciary            5.7     2.6     15.1      8.5
         Gross revenues                    362.5   329.3  1,340.3  1,210.9
    Less brokerage                          (9.8)  (10.2)   (41.3)   (40.7)
         Revenues                          352.7   319.1  1,299.0  1,170.2

    Compensation                           201.2   175.3    735.4    660.8
    Operating                               72.3    72.2    277.5    262.8
    Depreciation                             5.5     5.4     22.3     21.5
    Amortization                             5.0     3.1     18.5      9.9
         Expenses                          284.0   256.0  1,053.7    955.0

    Earnings before income taxes            68.7    63.1    245.3    215.2
    Provision for income taxes              13.7    15.2     49.0     52.5
    Net earnings                           $55.0   $47.9   $196.3   $162.7

    Diluted net earnings per share         $0.58   $0.52    $2.07    $1.75
    Growth - revenues                        11%     12%      11%      15%
    Organic growth in commissions and
     fees  (1)                                3%      9%       6%      12%
    Growth - pretax earnings                  9%     22%      14%      19%
    Compensation expense ratio               56%     53%      55%      55%
    Operating expense ratio                  20%     22%      21%      22%
    Pretax profit margin                     19%     19%      18%      18%
    Effective tax rate                       20%     24%      20%      24%

    See notes to fourth quarter 2004 earnings release and non-GAAP
    financial measures on page 6.



                          Arthur J. Gallagher & Co.
                        Segment Statement of Earnings
               (Unaudited - in millions except per share data)

                                            4th Q   4th Q    Year     Year
                                            Ended   Ended    Ended    Ended
                                           Dec 31, Dec 31,  Dec 31,  Dec 31,
    FINANCIAL SERVICES SEGMENT              2004     2003    2004     2003

    Investment income                       $33.3   $21.6   $103.3    $71.7
    Impact of FIN 46 on investment income      -     25.2     69.9     46.4
    Investment gains (losses)                 0.9    (0.4)     8.1    (24.5)
         Revenues                            34.2    46.4    181.3     93.6

    Investment expenses                      36.0    15.6    101.9     53.7
    Impact of FIN 46 on investment expenses    -     24.1     67.2     44.1
    Interest                                  2.6     1.9      9.5      8.0
    Depreciation                              3.0     2.0      9.8      7.4
    Impact of FIN 46 on depreciation expense   -      1.1      2.7      2.3
         Expenses                            41.6    44.7    191.1    115.5

    Earnings (loss) before income taxes      (7.4)    1.7     (9.8)   (21.9)
    Provision (benefit) for income taxes     (1.5)    0.4     (2.0)    (5.4)
    Net earnings (loss)                     $(5.9)   $1.3    $(7.8)  $(16.5)

    Diluted net earnings (loss) per share  $(0.06)  $0.01   $(0.08)  $(0.18)



                      Consolidated Statement of Earnings
                (Unaudited - in millions except per share data)

                                          4th Q   4th Q     Year     Year
                                          Ended   Ended     Ended    Ended
                                         Dec 31, Dec 31,   Dec 31,  Dec 31,
    TOTAL COMPANY                          2004    2003     2004     2003

    Commissions                           $215.0  $202.9   $801.9   $746.2
    Fees                                   141.8   123.8    523.3    456.2
    Investment income - fiduciary            5.7     2.6     15.1      8.5
    Investment income - all other           33.3    46.8    173.2    118.1
    Investment gains (losses)                0.9    (0.4)     8.1    (24.5)
         Gross revenues                    396.7   375.7  1,521.6  1,304.5
    Less brokerage                          (9.8)  (10.2)   (41.3)   (40.7)
         Revenues                          386.9   365.5  1,480.3  1,263.8

    Compensation                           201.2   175.3    735.4    660.8
    Operating                               72.3    72.2    277.5    262.8
    Investment expenses                     36.0    39.7    169.1     97.8
    Interest                                 2.6     1.9      9.5      8.0
    Depreciation                             8.5     8.5     34.8     31.2
    Amortization                             5.0     3.1     18.5      9.9
         Expenses                          325.6   300.7  1,244.8  1,070.5

    Earnings before income taxes            61.3    64.8    235.5    193.3
    Provision for income taxes              12.2    15.6     47.0     47.1
    Net earnings                           $49.1   $49.2   $188.5   $146.2

    Diluted net earnings per share         $0.52   $0.53    $1.99    $1.57
    Dividends declared per share           $0.25   $0.18    $1.00    $0.72

    Other Information
    Diluted weighted average shares
     outstanding (000s)                   94,827  93,570   94,546   93,292
    Common shares repurchased (000s)         613     970    1,783    2,864
    Annualized return on beginning
     tangible net worth (2)                                   48%      37%
    Number of acquisitions closed              5       7       19       14
    Workforce at end of period (includes
     acquisitions)                                          8,204    7,206

    Earnings Before Investment (Gains)
     Losses, Depreciation,
      Amortization and Stock Compensation
       Expense (3)
    Net earnings                           $49.1   $49.2   $188.5   $146.2
    Investment (gains) losses               (0.9)    0.4     (8.1)    24.5
    Depreciation                             8.5     8.5     34.8     31.2
    Amortization                             5.0     3.1     18.5      9.9
    Amortization of deferred comp and
     restricted stock                        2.7     2.2     10.0      7.6
    Stock compensation expense               1.7     1.8      5.6      1.8
    Tax effect                              (3.4)   (3.8)   (12.2)   (18.3)
    Earnings before investment (gains)
     losses, depreciation, amortization
     and stock compensation expense        $62.7   $61.4   $237.1   $202.9

    On a diluted per share basis           $0.66   $0.66    $2.51    $2.17

    See notes to fourth quarter 2004 earnings release and non-GAAP
    financial measures on page 6.



                          Arthur J. Gallagher & Co.
                          Consolidated Balance Sheet
               (Unaudited - in millions except per share data)

                                                 Dec 31, 2004     Dec 31, 2003

    Cash and cash equivalents                        $224.6            $193.6
    Restricted cash                                   488.9             437.6
    Trading securities                                   -                5.0
    Unconsolidated investments - current               26.0              26.9
    Premiums and fees receivable                    1,355.5           1,286.4
    Other current assets                              132.8             158.4
         Total current assets                       2,227.8           2,107.9

    Unconsolidated investments -
     noncurrent                                       132.4             121.0
    Fixed assets related to consolidated
     investments - net                                195.6             205.2
    Other fixed assets - net                           63.4              61.0
    Deferred income taxes                             184.8             137.8
    Other noncurrent assets                            59.7              45.8
    Goodwill - net                                    219.0             138.3
    Amortizable intangible assets - net               155.2              84.6
         Total assets                              $3,237.9          $2,901.6


    Premiums payable to insurance and
     reinsurance companies                         $1,838.9          $1,743.5
    Accrued compensation and other accrued
     liabilities                                      253.4             219.3
    Unearned fees                                      35.0              27.3
    Income taxes payable                               24.8              24.3
    Other current liabilities                          18.6              16.0
    Corporate related borrowings                         -                 -
    Investment related borrowings -
     current                                           41.4              30.9
         Total current liabilities                  2,212.1           2,061.3

    Investment related borrowings -
     noncurrent                                       140.0             122.1
    Other noncurrent liabilities                      124.8              99.1
         Total liabilities                          2,476.9           2,282.5

    Stockholders' equity:
    Common stock - issued and outstanding              92.1              90.0
    Capital in excess of par value                    146.4             105.5
    Retained earnings                                 539.0             442.3
    Unearned deferred compensation                    (12.2)             (9.6)
    Unearned restricted stock                          (4.3)             (9.1)
         Total stockholders' equity                   761.0             619.1
         Total liabilities and
          stockholders' equity                     $3,237.9          $2,901.6

    Other Information
    Tangible net worth  (4)                          $386.8            $396.2
    Book value per share                              $8.26             $6.88
    Tangible book value per share  (5)                $4.20             $4.40


    Notes to Fourth Quarter 2004 Earnings Release and Non-GAAP Financial
    Measures

    This exhibit contains supplemental non-GAAP financial information within
    the meaning of Regulation G of the SEC's rules.  Consistent with
    Regulation G, a description of such information is provided below and a
    reconciliation of certain of such items to U.S. generally accepted
    accounting principles (GAAP) is provided elsewhere in this press release.
    Gallagher believes the items described below provide meaningful
    additional information, which may be helpful to investors in assessing
    certain aspects of Gallagher's operating performance and financial
    condition that may not be otherwise apparent from GAAP.  Industry peers
    provide similar supplemental information, although they may not use the
    same or comparable terminology and may not make identical adjustments.
    This non-GAAP information should be used in addition to, but not as a
    substitute for, the GAAP information.

    Non-GAAP Measures Defined

    (1)  Organic growth excludes the first twelve months of net commission
         and/or fee revenues generated from the acquisitions accounted for as
         purchases and the net commission and/or fee revenues related to
         operations disposed of in each year presented.  These commissions
         and fees are excluded from organic revenues in order to determine
         the revenue growth that is associated with the operations that were
         a part of Gallagher in both the current and prior year.

    (2)  Represents year-to-date net earnings divided by total stockholders'
         equity, less net balance of goodwill and amortizable intangible
         assets, as of the beginning of the year.

    (3)  Represents net earnings before the after-tax effect of investment
         gains (losses), depreciation, amortization, amortization of deferred
         compensation and restricted stock expense and stock compensation
         expense.

    (4)  Represents total stockholders' equity less net balance of goodwill
         and amortizable intangible assets.

    (5)  Represents tangible net worth divided by the common shares
         outstanding at the end of the period.



                          Arthur J. Gallagher & Co.
                      Unconsolidated Investment Summary
                          (Unaudited - in millions)

                                                          December 31, 2004
                                                          LOCs &
                December 31, 2004   December 31, 2003   Financial    Funding
                Current Noncurrent  Current Noncurrent  Guarantees Commitments


    Unconsolidated
     Investments:
    Direct and
     indirect
     investments in
     Asset Alliance
     Corporation
     (AAC)         $0.8     $46.7      $1.3     $49.8       $-         $-

    Low income
     housing (LIH)
     developments:
      Bridge
       loans        5.2        -        9.5        -         -          -
      Partnership
       interests     -        1.5        -        3.1        -          -
      LIH Developer  -        9.2        -        7.6        -          -

    Alternative
     energy
     investments:
      Owned
       partnership
       interests    0.9      19.1       1.5      28.3       4.4        0.2
      Biogas
       project       -       14.7        -         -         -          -
      Partnership
       interest
       installment
       sales       18.6      12.9      14.6       8.0        -          -

    Bermuda
     insurance
     investments     -       20.4        -       20.4       6.7         -

    Real estate,
     venture capital
     and other
     investments    0.5       7.9        -        3.8        -         2.0

      Total uncon-
       solidated
       investments 26.0     132.4      26.9     121.0      11.1        2.2

    Non-recourse
     borrowings -
     Biogas
     project       (0.2)    (13.8)       -         -         -          -

      Net uncon-
       solidated
       invest-
       ments      $25.8    $118.6     $26.9    $121.0     $11.1       $2.2



                         Consolidated Investment Summary
                            (Unaudited - in millions)

                                                          December 31, 2004
                                                          LOCs &
                              December 31, December 31, Financial    Funding
                                 2004          2003     Guarantees Commitments

    Home office land
     and building:
      Fixed assets              $101.3        $100.9        $-         $-
      Accumulated depreciation   (15.8)        (13.2)        -          -
      Non-recourse borrowings
       - current                  (0.9)         (0.8)        -          -
      Recourse borrowings
       - current                    -             -          -          -
      Non-recourse borrowings
       - noncurrent              (73.1)        (74.0)        -          -
      Recourse borrowings
       - noncurrent               (3.0)         (3.0)        -          -
      Net other consolidated
       assets and liabilities      2.8           2.2         -          -

           Net investment         11.3          12.1         -          -

    Florida community development:
      Fixed assets                60.3          56.0         -          -
      Accumulated depreciation    (0.7)           -          -          -
      Non-recourse borrowings
       - current                 (17.9)        (10.7)        -          -
      Recourse borrowings
       - current                 (17.0)        (17.0)        -          -
      Non-recourse borrowings
       - noncurrent               (0.1)         (0.2)        -          -
      Recourse borrowings
       - noncurrent              (12.4)        (12.4)        -          -
      Net other consolidated
       assets and liabilities     (2.4)         (3.6)       2.7        0.6

           Net investment          9.8          12.1        2.7        0.6

    Airplane leasing company:
      Fixed assets                51.8          51.8         -          -
      Accumulated depreciation   (14.1)        (10.5)        -          -
      Non-recourse borrowings
       - current                  (2.6)         (2.4)        -          -
      Recourse borrowings
       - current                    -             -          -          -
      Non-recourse borrowings
       - noncurrent              (29.9)        (32.5)        -          -
      Recourse borrowings
       - noncurrent                 -             -          -          -
      Net other consolidated
       assets and liabilities       -            0.9         -          -

           Net investment          5.2           7.3         -          -

    Syn/Coal partnerships:
      Fixed assets                15.6          35.2         -          -
      Accumulated depreciation    (2.8)        (15.0)        -          -
      Non-recourse borrowings
       - current                  (2.8)           -          -          -
      Recourse borrowings
       - current                    -             -          -          -
      Non-recourse borrowings
       - noncurrent               (7.7)           -          -          -
      Recourse borrowings
       - noncurrent                 -             -          -          -
      Net other consolidated
       assets and liabilities      1.6           0.6         -          -

           Net investment          3.9          20.8         -          -

    Total consolidated investments:
      Fixed assets               229.0         243.9         -          -
      Accumulated depreciation   (33.4)        (38.7)        -          -
      Non-recourse borrowings
       - current                 (24.2)        (13.9)        -          -
      Recourse borrowings
       - current                 (17.0)        (17.0)        -          -
      Non-recourse borrowings
       - noncurrent             (110.8)       (106.7)        -          -
      Recourse borrowings
       - noncurrent              (15.4)        (15.4)        -          -
      Net other consolidated
       assets and liabilities      2.0           0.1        2.7        0.6

           Net investment        $30.2         $52.3       $2.7       $0.6

SOURCE Arthur J. Gallagher & Co.

Marsha J. Akin, Investor Relations, of Arthur J. Gallagher & Co., +1-630-773-3800
http://www.prnewswire.com