The Cultural Foundation of Gallagher: The Gallagher Way

This chapter explores the distinctive 'Gallagher way' company culture, which prioritizes relationships, customer service, and collaboration. It highlights the organization's history since its founding in 1927 and how its core values continue to unite employees despite the company's growth.

Transcript

chevron_right

Play full episode

chevron_right

Transcript

Episode notes

I'm Zack Fuss. Today we're breaking down Arthur J. Gallagher, a global insurance brokerage. AJG was established in 1927 by Arthur James Gallagher and is now one of the largest insurance brokerages by revenue, exceeding $10 billion. AJG competes with the likes of Marsh McLennan, Aon, and Willis Towers Watson.

To break down Gallagher, I am joined by Mike Hayward, a portfolio manager at WCM Asset Management. During this conversation, we discussed the company's successful acquisition strategy, the strength of the insurance brokerage industry, and how the shifting industry dynamics will impact the durability of its competitive advantage. Please enjoy this breakdown of A. J. Gallagher.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

-----

This episode is brought to you by 10 East. 10 East is a platform where qualified investors can co-invest on a deal-by-deal basis across private equity, private credit, real estate ventures, and other one-off opportunities typically unavailable through traditional channels. It's no surprise that founders, executives, and portfolio managers from leading investment firms are using 10 East to diversify their personal portfolios. Their level of sourcing and diligence is institutional grade. To learn more, check out 10east.com.

-----

Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.

Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

Show Notes:

[00:00:00] First question - What AJG is and what they do

[00:03:28] Value chain and key components of the insurance industry

[00:06:03] Gallagher’s business segments and specialty

[00:08:58] Their defensibility and competitive edge

[00:13:22] Stickiness and noteworthy retention rates

[00:17:06] Why the market undervalues their stickiness

[00:19:19] Their acquisition strategy and its role in ongoing, consistent growth

[00:25:20] What ‘The Gallagher Way’ really means and company history

[00:29:52] Overview of the financial model and structure

[00:34:09] Potential risks to Gallagher’s continued success