Arthur J. Gallagher & Co. · 10-Q · Item 2 MD&A

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion and analysis that follows relates to our financial condition and results of operations for the six-month period ended June 30, 2026. Readers should review this information in conjunction with the June 30, 2026 unaudited consolidated financial statements and notes included in Item 1 of Part I of this quarterly report on Form 10‑Q and the audited consolidated financial statements and notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in our annual report on Form 10-K for the year ended December 31, 2025.

Prior Year Discussion of Results and Comparisons

For Information on fiscal second quarter 2025 results and similar comparisons, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Form 10-Q for the fiscal six-month period ended June 30, 2025.

Information Regarding Non-GAAP Measures and Other

In the discussion and analysis of our results of operations that follows, in addition to reporting financial results in accordance with GAAP, we provide information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share, as adjusted (adjusted EPS), adjusted revenue, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue. These measures are not in accordance with, or an alternative to, the GAAP information provided in this quarterly report on Form 10‑Q. We believe that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to our results of operations and financial condition or because they provide investors with measures that our chief operating decision makers use when reviewing the Company’s performance.

See further below for definitions and additional reasons each of these measures is useful to investors. Our industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information we provide should be used in addition to, but not as a substitute for, the GAAP information provided. As disclosed in our most recent Proxy Statement, we make determinations regarding certain elements of executive officer incentive compensation, performance share awards and annual cash incentive awards, partly on the basis of measures related to adjusted EBITDAC.

Adjusted Non-GAAP presentation - We believe that the adjusted non-GAAP presentation of the current and prior period information presented on the following pages provides stockholders and other interested persons with useful information regarding certain financial metrics that may assist such persons in analyzing our operating results as they develop a future earnings outlook for us. The after-tax amounts related to the adjustments were computed using the normalized effective tax rate for each respective period.

•Adjusted measures - Revenues (for the brokerage segment), revenues before reimbursements (for the risk management segment), net earnings, compensation expense and operating expense, respectively, are each adjusted to exclude the following, as applicable:

•Net (gains) losses on divestitures, which are primarily net proceeds received related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.

•Acquisition integration costs, which include costs related to certain large acquisitions (including the acquisitions of Willis Towers Watson plc treaty reinsurance brokerage operations, Buck, Cadence Insurance, Inc., Eastern Insurance Group, LLC, My Plan Manager Group Pty Ltd, Woodruff Sawyer and AssuredPartners), outside the scope of our usual tuck‑in strategy, are not expected to occur on an ongoing basis in the future once we fully assimilate the applicable acquisition. These costs are typically associated with redundant workforce, compensation expense related to amortization of certain retention bonus arrangements, extra lease space, duplicate services and external costs incurred to assimilate the acquisition into our IT related systems.

•Transaction-related costs, which are associated with completed, future and terminated acquisitions. Costs primarily relate to the acquisitions of AssuredPartners and Woodruff Sawyer, which closed in August 2025 and April 2025, respectively. These include costs related to regulatory filings, legal and accounting services, insurance and incentive compensation.

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•T1Workforce related charges, which primarily include severance costs (either accrued or paid) related to employee terminations and other costs associated with redundant workforce.

•Lease termination related charges, which primarily include costs related to terminations of real estate leases and abandonment of leased space.

•Acquisition related adjustments principally relate to changes in estimated acquisition earnout payables adjustments and acquisition related compensation charges. In addition, from time to time may include changes in balance sheet estimates arising from conforming accounting principles, purchase-related true-ups and other balance sheet adjustments made after the closing date.

•Amortization of intangible assets, which reflects the amortization of customer/expiration lists, non-compete agreements, trade names and other intangible assets acquired through our merger and acquisition strategy, the impact to amortization expense of acquisition valuation adjustments to these assets as well as non-cash impairment charges.

•The impact of foreign currency translation, as applicable. The amounts excluded with respect to foreign currency translation are calculated by applying current year foreign exchange rates to the same period in the prior year.

•Effective income tax rate impact, which levelizes the prior year for the change in current year tax rates.

•Clean energy-related, which represents the impact of adjustments in first quarter 2026 related to the write-down of a clean energy-related investment.

•Legal and tax related, which represents the impact of adjustments in second quarter 2026 related to costs associated with legal and tax matters.

•Benefit plan related, which represents the impact of adjustments in second quarter 2026 related to costs associated with the termination of the Gallagher US defined pension plan and other benefit plan changes.

Adjusted ratios - Adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

Non-GAAP Earnings Measures

•EBITDAC and EBITDAC Margin - EBITDAC is net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables and EBITDAC margin is EBITDAC divided by total revenues (for the brokerage segment) and revenues before reimbursements (for the risk management segment). These measures for the brokerage and risk management segments provide a meaningful representation of our operating performance for the overall business and provide a meaningful way to measure our financial performance on an ongoing basis.

•EBITDAC, as Adjusted and EBITDAC Margin, as adjusted - Adjusted EBITDAC is EBITDAC adjusted to exclude net gains on divestitures, acquisition integration costs, workforce related charges, lease termination related charges, acquisition related adjustments, transaction-related costs, and the period-over-period impact of foreign currency translation as applicable, (and for the corporate segment, the clean energy related adjustments described above) and Adjusted EBITDAC margin is Adjusted EBITDAC divided by total adjusted revenues (defined above). These measures for the brokerage and risk management segments provide a meaningful representation of our operating performance, and are also presented to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability.

•EPS, as Adjusted and Net Earnings, as Adjusted - Adjusted net earnings have been adjusted to exclude the after-tax impact of net gains on divestitures, acquisition integration costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments, transaction-related costs, amortization of intangible assets, and effective income tax rate impact, as applicable. Adjusted EPS is Adjusted Net Earnings divided by diluted weighted

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average shares outstanding. This measure provides a meaningful representation of our operating performance (and as such should not be used as a measure of our liquidity), and for the overall business is also presented to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability.

Organic Revenues (a non-GAAP measure) - Organic revenue change measures the year-over-year percentage change in organic revenue. For the brokerage segment, organic revenue consists of base commission and fee revenues, supplemental revenues and contingent revenues and excludes the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations which include disposals of a business through sale or closure, estimate changes, run-off of a business and the restructuring and/or repricing of programs and products in each year presented. Such revenues are excluded from organic revenues in order to help interested persons analyze the revenue growth associated with the operations that were a part of our business in both the current and prior period.

In order to improve the comparability of our results between periods, we further exclude the period‑over‑period impact of foreign currency translation; revenue from certain large life product sales within Gallagher’s Executive Life and Benefits practice group (which are typically large, singular transactions with a high degree of variability in amount and timing); and revenue attributable to changes in assumptions used to calculate estimated deferred revenues, which impact the quarterly timing of revenues during the annual contract period. For the risk management segment, organic revenues consists of fee revenues and excludes the first twelve months of such revenues generated from acquisitions and such revenues related to divested operations in each year presented. In order to improve the comparability of our results between periods, we further exclude the period-over-period impact of foreign currency translation.

These revenue items are excluded from organic revenues in order to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond, as well as eliminating the impact of the items that have a high degree of variability. We have historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of our brokerage and risk management segments. We also believe that using this non‑GAAP measure allows readers of our financial statements to measure, analyze and compare the growth from our brokerage and risk management segments in a meaningful and consistent manner.

Reconciliation of Non-GAAP Information Presented to GAAP Measures - This quarterly report on Form 10‑Q includes tabular reconciliations to the most comparable GAAP measures, as follows: for EBITDAC (on pages 41 and 47) and adjusted EBITDAC margin, (on page 44) , for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share (on page 35), for organic revenue measures (on pages 42 and 47), respectively, for the brokerage and risk management segments, for adjusted compensation and operating expenses for the brokerage segment and (on page 48) for the risk management segment.

Other Information - Allocations of investment income and certain expenses are based on reasonable assumptions and estimates primarily using revenue, headcount and other information. We allocate the provision for income taxes to the brokerage and risk management segments using local statutory rates. T2We anticipate reporting an effective tax rate of approximately 24.5% to 26.5% in the brokerage segment and 25.0% to 27.0% in the risk management segment for the foreseeable future. Reported operating results by segment would change if different allocation methods were applied.

In the discussion that follows regarding our results of operations, we also provide the following ratios with respect to our operating results: pretax profit margin, compensation expense ratio and operating expense ratio. Pretax profit margin represents pretax earnings divided by total revenues. The compensation expense ratio is compensation expense divided by total revenues. The operating expense ratio is operating expense divided by total revenues.

Overview and Second Quarter 2026 Highlights

We are engaged in providing insurance brokerage, reinsurance brokerage, consulting services, and third-party property/casualty claims settlement and administration services to entities and individuals around the world. In the six-month period ended June 30, 2026, we generated approximately 69% of our revenues for the combined brokerage and risk management segments domestically and 31% internationally, primarily in Australia, Canada, New Zealand and the U.K. We have three reportable segments: brokerage, risk management and corporate. The brokerage and risk management segments contributed approximately 89% and 11%, respectively, to revenues during the six-month period ended June 30, 2026. The corporate segment did not generate any significant revenues in the six-month period ended June 30, 2026. Our major sources of operating revenues are commissions, fees and supplemental and contingent revenues from brokerage operations and fees

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from risk management operations. Interest income is earned on cash, cash equivalents and fiduciary cash and revenues are generated from premium financing.

We use the Council of Insurance Agents and Brokers (which we refer to as CIAB) insurance pricing quarterly survey as an indicator of the insurance rate environment. The CIAB represents the leading domestic and international insurance brokers, who write approximately 85% of the commercial property/casualty premiums in the U.S. The second quarter 2026 survey had not been published as of the filing date of this report. The first quarter 2026 survey indicated that U.S. commercial property/commercial casualty rates decreased 1.2%. The 2025 quarterly surveys indicated that U.S. commercial property/casualty rates increased by 4.2%, 3.7%, 1.6%, and 0.2% on average for the first, second, third and fourth quarters of 2025.

T3We continue to observe carrier competition across property-related coverages, while casualty lines, particularly in the U.S., remain subject to more cautious underwriting.

Catastrophe loss activity and other market factors could influence pricing, capacity and underwriting conditions in the property insurance and reinsurance markets upon renewal. In addition, elevated loss trends and continued profitability concerns in certain casualty coverages could impact pricing, underwriting terms and conditions in those lines.

Rising insurable values, including those driven by inflationary pressures, employment levels, and changes in market risks, continue to contribute to growth in insured exposures.

Summary of Financial Results - Three-Month Periods Ended June 30, 2026 and 2025

See the reconciliations of non-GAAP measures on page 37.

(In millions, except per share data)

Change

Reported

GAAP

Adjusted

Non-GAAP

Reported

GAAP

Adjusted

Non-GAAP

Reported

GAAP

Adjusted

Non-GAAP

Brokerage Segment

Revenues

$

$

$

$

%

%

Organic revenues

$

$

5

%

Net earnings

$

$

%)

Net earnings margin

%

%

Adjusted EBITDAC

$

$

%

Adjusted EBITDAC margin

%

%

Diluted net earnings per share

$

$

$

$

%)

%

Risk Management Segment

Revenues before reimbursements

$

$

$

$

%

%

Organic revenues

$

$

%

Net earnings

$

$

%

Net earnings margin (before reimbursements)

%

%

Adjusted EBITDAC

$

$

%

Adjusted EBITDAC margin (before reimbursements)

%

%

Diluted net earnings per share

$

$

$

$

%

%

Corporate Segment

Diluted net loss per share

$

$

$

$

Total Company

Diluted net earnings per share

$

$

$

$

%)

%

Total Brokerage and Risk Management Segment

Diluted net earnings per share

$

$

$

$

(7

%)

%

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Summary of Financial Results - Six-Month Periods Ended June 30, 2026 and 2025

See the reconciliations of non-GAAP measures on page 37.

(In millions, except per share data)

Change

Reported

GAAP

Adjusted

Non-GAAP

Reported

GAAP

Adjusted

Non-GAAP

Reported

GAAP

Adjusted

Non-GAAP

Brokerage Segment

Revenues

$

$

$

$

%

%

Organic revenues

$

$

5

%

Net earnings

$

$

3

%

Net earnings margin

%

%

Adjusted EBITDAC

$

$

%

Adjusted EBITDAC margin

%

%

Diluted net earnings per share

$

$

$

$

3

%

%

Risk Management Segment

Revenues before reimbursements

$

$

$

$

%

%

Organic revenues

$

$

%

Net earnings

$

$

%

Net earnings margin (before reimbursements)

%

%

Adjusted EBITDAC

$

$

%

Adjusted EBITDAC margin (before reimbursements)

%

%

Diluted net earnings per share

$

$

$

$

%

%

Corporate Segment

Diluted net loss per share

$

$

$

$

Total Company

Diluted net earnings per share

$

$

$

$

7

%

%

Total Brokerage and Risk Management Segment

Diluted net earnings per share

$

$

$

$

5

%

%

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The following provides information that management believes is helpful when comparing revenues before reimbursements, net earnings, EBITDAC and diluted net earnings per share for the three and six-month periods ended June 30, 2026 with the same periods in 2025. In addition, these tables provide reconciliations to the most comparable GAAP measures for adjusted revenues, adjusted EBITDAC and adjusted diluted net earnings per share. Reconciliations of EBITDAC for the brokerage and risk management segments are provided on pages 41 and 47 , respectively, of this filing.

For the Three-Month Periods Ended June 30 Reported GAAP to Adjusted Non-GAAP Reconciliation:

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

Chg

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$

$

$

$

$

$

$

$

%)

Net losses (gains) on divestitures

(8)

(6)

(6)

(5)

(8)

(6)

Acquisition integration

—

—

Workforce and lease termination

—

—

Acquisition related adjustments

—

—

Amortization of intangible assets

—

—

—

—

Levelized foreign currency translation

—

1

—

(7)

—

(9)

—

Brokerage, as adjusted

%

Risk Management, as reported

%

Acquisition integration

—

—

1

1

1

2

—

Workforce and lease termination

—

—

1

3

2

4

Acquisition related adjustments

—

—

2

1

2

1

—

Amortization of intangible assets

—

—

5

5

—

—

Levelized foreign currency translation

—

5

—

1

—

1

—

—

Risk Management, as adjusted

%

Corporate, as reported

—

—

Transaction-related costs

—

—

Legal, tax and benefit plan related

—

—

—

—

—

Corporate, as adjusted

—

—

$

$

Total Company, as reported

$

$

$

$

$

$

$

$

%)

Total Company, as adjusted

$

$

$

$

$

$

$

$

%

Total Brokerage & Risk

Management, as reported

$

$

$

$

$

$

$

$

(7

%)

Total Brokerage & Risk

Management, as adjusted

$

$

$

$

$

$

$

$

%

For second quarter 2025, reported and adjusted amounts for the Brokerage Segment include approximately $144 million of incremental interest income, or approximately 42 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.

For the three-month period ended June 30, 2026, the pretax impact of adjustments for the brokerage, risk management and corporate segments totals $505 million, $12 million and $33 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes of $130 million, $3 million and ($7) million, respectively, relating to these adjustments. A detailed reconciliation of the 2026 provision (benefit) for income taxes is shown on page 37.

For the three-month period ended June 30, 2025, the pretax impact of adjustments for the brokerage, risk management and corporate segments totals $269 million, $14 million and $29 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes of $68 million, $3 million and ($5) million, respectively, relating to these adjustments. A detailed reconciliation of the 2025 provision (benefit) for income taxes is shown on page 37.

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For the Six Month Periods Ended June 30 Reported GAAP to Adjusted Non-GAAP Reconciliation:

Revenues Before

Reimbursements

Net Earnings (Loss)

EBITDAC

Diluted Net Earnings

(Loss) Per Share

Segment

Chg

(in millions)

(in millions)

(in millions)

Brokerage, as reported

$

$

$

$

$

$

$

$

3

%

Net (gains) on divestitures

(9)

Acquisition integration

—

—

Workforce and lease termination

—

—

Acquisition related adjustments

—

—

Amortization of intangible assets

—

—

—

—

Effective income tax rate impact

—

—

—

1

—

—

—

—

Levelized foreign currency translation

—

—

6

—

—

Brokerage, as adjusted

%

Risk Management, as reported

%

Acquisition integration

—

—

2

2

2

4

Workforce and lease termination

—

—

2

6

3

7

Acquisition related adjustments

—

—

6

1

8

1

—

Amortization of intangible assets

—

—

9

—

—

Levelized foreign currency translation

—

—

2

—

2

—

Risk Management, as adjusted

%

Corporate, as reported

(5)

—

Transaction-related costs

—

—

Legal, tax and benefit plan related

—

—

—

—

—

Clean energy-related

5

—

3

—

5

—

—

Corporate, as adjusted

—

—

Total Company, as reported

$

$

$

$

$

$

$

$

7

%

Total Company, as adjusted

$

$

$

$

$

$

$

$

%

Total Brokerage & Risk

Management, as reported

$

$

$

$

$

$

$

$

5

%

Total Brokerage & Risk

Management, as adjusted

$

$

$

$

$

$

$

$

%

For six-month period ended June 30, 2025, reported and adjusted amounts for the Brokerage Segment include approximately $287 million of incremental interest income, or approximately 82 cents after-tax, earned on the cash proceeds associated with the AssuredPartners Financing in December 2024.

For the six-month period ended June 30, 2026, the pretax impact of adjustments for the brokerage, risk management and corporate segments totals $936 million, $27 million and $63 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes of $241 million, $7 million and ($27) million, respectively, relating to these adjustments. A detailed reconciliation of the 2026 provision (benefit) for income taxes is shown on page 37.

For the six-month period ended June 30, 2025, the pretax impact of adjustments for the brokerage, risk management and corporate segments totals $579 million, $26 million and $52 million, respectively, and corresponding adjustment to the provision (benefit) for income taxes of $144 million, $6 million and ($8) million, respectively, relating to these adjustments. A detailed reconciliation of the 2025 provision (benefit) for income taxes is shown on page 37.

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Reconciliation of Non-GAAP Measures - Pretax Earnings and Diluted Net Earnings per Share

(In millions, except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings (Loss)

Attributable to

Noncontrolling

Interests

Net Earnings (Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings (Loss)

per Share

Brokerage, as reported

$

$

$

$

—

$

$

Net (gains) on divestitures

(8)

(2)

(6)

—

(6)

Acquisition integration

—

Workforce and lease termination

—

Acquisition related adjustments

—

Amortization of intangible assets

—

Brokerage, as adjusted

$

$

$

$

—

$

$

Risk Management, as reported

$

$

$

$

—

$

$

Acquisition integration

1

—

1

—

1

—

Workforce and lease termination

2

1

1

—

1

Acquisition related adjustments

2

—

2

—

2

Amortization of intangible assets

7

2

5

—

5

Risk Management, as adjusted

$

$

$

$

—

$

$

Corporate, as reported

$

$

$

$

—

$

$

Transaction-related costs

2

—

Legal, tax and benefit plan related

5

—

Corporate, as adjusted

$

$

$

$

—

$

$

—

Brokerage, as reported

$

$

$

$

—

$

$

Net (gains) on divestitures

(6)

(1)

(5)

—

(5)

Acquisition integration

—

Workforce and lease termination

9

—

Acquisition related adjustments

8

—

Amortization of intangible assets

—

Levelized foreign currency translation

(3)

(7)

—

(7)

Brokerage, as adjusted

$

$

$

$

—

$

$

Risk Management, as reported

$

$

$

$

—

$

$

Acquisition integration

2

1

1

—

1

Workforce and lease termination

4

1

3

—

3

Acquisition related adjustments

1

—

1

—

1

—

Amortization of intangible assets

6

1

5

—

5

Levelized foreign currency translation

1

—

1

—

1

—

Risk Management, as adjusted

$

$

$

$

—

$

$

Corporate, as reported

$

$

$

$

—

$

$

Transaction-related costs

5

—

Corporate, as adjusted

$

$

$

$

—

$

$

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Reconciliation of Non-GAAP Measures - Pretax Earnings and Diluted Net Earnings per Share

(In millions, except share and per share data)

Earnings

(Loss)

Before Income

Taxes

Provision

(Benefit)

for Income

Taxes

Net Earnings

(Loss)

Net Earnings (Loss)

Attributable to

Noncontrolling

Interests

Net Earnings (Loss)

Attributable to

Controlling

Interests

Diluted Net

Earnings (Loss)

per Share

Brokerage, as reported

$

$

$

$

1

$

$

Net (gains) on divestitures

(4)

—

Acquisition integration

—

Workforce and lease termination

—

Acquisition related adjustments

—

Amortization of intangible assets

—

Brokerage, as adjusted

$

$

$

$

1

$

$

Risk Management, as reported

$

$

$

$

—

$

$

Acquisition integration

2

—

2

—

2

Workforce and lease termination

3

1

2

—

2

Acquisition related adjustments

8

2

6

—

6

Amortization of intangible assets

4

—

Risk Management, as adjusted

$

$

$

$

—

$

$

Corporate, as reported

$

$

$

$

—

$

$

Transaction-related costs

3

—

Legal, tax and benefit plan related

—

Clean energy-related

5

2

3

—

3

Corporate, as adjusted

$

$

$

$

—

$

$

—

Brokerage, as reported

$

$

$

$

5

$

$

Net (gains) on divestitures

(3)

(9)

—

(9)

Acquisition integration

—

Workforce and lease termination

—

Acquisition related adjustments

—

Amortization of intangible assets

—

Effective income tax rate impact

—

(1)

1

—

1

—

Levelized foreign currency translation

7

1

6

—

6

Brokerage, as adjusted

$

$

$

$

5

$

$

Risk Management, as reported

$

$

$

$

—

$

$

Acquisition integration

4

2

2

—

2

Workforce and lease termination

7

1

6

—

6

Acquisition related adjustments

1

—

1

—

1

—

Amortization of intangible assets

3

9

—

9

Levelized foreign currency translation

2

—

2

—

2

Risk Management, as adjusted

$

$

$

$

—

$

$

Corporate, as reported

$

$

$

$

—

$

$

Transaction-related costs

8

—

Corporate, as adjusted

$

$

$

$

—

$

$

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Please see Note 3 to our consolidated financial statements for further details on our most recent acquisitions.

Results of Operations

Brokerage

The brokerage segment accounted for 89% of our revenues during the six-month period ended June 30, 2026. Our brokerage segment is primarily comprised of retail, wholesale and reinsurance brokerage operations. For further description of our segment operations and revenue sources, see the "Business" section in our Annual Report on Form 10-K for the year ended December 31, 2025.

Financial information relating to our brokerage segment results for the three and six-month periods ended June 30, 2026 compared to the same periods in 2025, is as follows (in millions, except per share, percentages and workforce data).

Three-month period ended

Six-month period ended

Statement of Earnings

Change

Change

Commissions

$

$

$

$

Fees

Supplemental revenues

Contingent revenues

Interest income, premium finance revenues and other income

Total revenues

Compensation

Operating

Depreciation

7

Amortization

Change in estimated acquisition earnout payables

5

(6)

9

Total expenses

Earnings before income taxes

Provision for income taxes

8

Net earnings

Net earnings attributable to noncontrolling interests

—

—

—

1

5

(4)

Net earnings attributable to controlling interests

$

$

$

$

$

$

Diluted net earnings per share

$

$

$

$

$

$

Other Information

Change in diluted net earnings per share

%)

%

3

%

%

Growth in revenues

%

%

%

%

Organic change in commissions and fees

4

%

5

%

4

%

7

%

Compensation expense ratio

%

%

%

%

Operating expense ratio

%

%

%

%

Effective income tax rate

%

%

%

%

Workforce at end of period (includes acquisitions)

Identifiable assets at June 30

$

$

EBITDAC

Net earnings

$

$

$

$

$

$

Provision for income taxes

8

Depreciation

7

Amortization

Change in estimated acquisition earnout payables

5

(6)

9

EBITDAC

$

$

$

$

$

$

The following provides information that management believes is helpful when comparing EBITDAC and adjusted EBITDAC for the three and six-month periods ended June 30, 2026 compared to the same periods in 2025 (in millions):

Three-month period ended

Six-month period ended