Arthur J Gallagher & Co. (NYSE:AJG) Q1 2020 Earnings Conference Call - Final Transcript

Apr 30, 2020 • 05:15 pm ET


Arthur J Gallagher & Co. (NYSE:AJG) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the Arthur J. Gallagher and Company's First Quarter 2020 Earnings Conference Call. [Operator Instructions] Today's call is being recorded. If you have any objections, you may disconnect at this time.

Some of the comments made during this conference call, including answers given in response to questions, may constitute forward-looking statements within the meaning of the securities laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary statements and risk factors contained in the company's 10-K, 10-Q and 8-K filings for more details on those forward-looking statements.

In addition, for reconciliations of the non-GAAP measures discussed on this call as well as other information regarding these measures, please refer to the earnings release and other materials in the Investor Relations section of the company's website.

It is now my pleasure to introduce J. Patrick Gallagher, Chairman, President and CEO of Arthur J. Gallagher and Company. Mr. Gallagher, you may begin.

Patrick Gallagher

Thank you very much. Good afternoon, everyone, and thank you for joining us for our first quarter 2020 earnings call. Also on the call today is Doug Howell, our Chief Financial Officer as well as the heads of our operating divisions.

Before we get into our first quarter results, let me acknowledge those directly affected by COVID-19, including those on the front lines of the global pandemic. We are in all their dedication and courage. At Gallagher, our priority is the health and safety of our colleagues. We're very fortunate that less than 50 of our 34,000 associates have contracted the virus, nearly all of whom have fully recovered. With a few that are still self-quarantined, we wish you a speedy recovery.

I'm incredibly proud of how all our associates have performed over the past six weeks. In March, we mobilized our business continuity plans around the globe, and we're up and running, working from home in a few days. We are working remotely without missing a step. This is the payoff of our relentless efforts over the past decade to standardize work, streamline processes and operate using common systems.

All of our colleagues are productive, too. At home, they have the right tools and systems in order to deliver the highest quality service to our clients, and that includes more than 5,000 associates that are based in our service centers. And every day, we see countless examples of our employees unselfishly giving back from providing first responders with protective equipment, to sending meals to senior citizens, to distributing masks to the less fortunate. I'm proud but not surprised at the level of dedication, support and professionalism from all of our colleagues around the world. I thank every single one of you from the bottom of my heart.

Now, moving to our first quarter financial performance for our combined brokerage and risk management segments. Here are some highlights. We had a terrific revenue growth quarter. Total reported revenue growth of 4% and adjusted revenue