Arthur J Gallagher : Q1 2014 Earnings Release

ITASCA, IL, April 7, 2014 - Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended March 31, 2014. A printer-friendly format and supplemental quarterly data is available at www.ajg.com. For a description of the non-GAAP measures used to report financial results in this earnings release, please see "Information Regarding Non-GAAP Measures" beginning on page 6.

Gallagher will host a webcast conference call on Monday, April 7, 2014 at 10:00a.m. ET/9:00 a.m. CT. To listen to this call, please go to www.ajg.com.

"We are off to an excellent start in 2014," said J. Patrick Gallagher, Jr., Chairman, President and CEO. "Our revenue momentum continues; our combined Brokerage and Risk Management segments posted 20% growth in adjusted total revenues, 4% organic growth in commissions and fee revenues, and already in 2014 we have announced ten mergers with annualized revenues of approximately $153.6 million. In the quarter we also improved our adjusted margins by 120 basis points, and we delivered 28% growth in adjusted EBITDAC and 22% growth in adjusted net earnings per share."

 For our Brokerage segment, adjusted total revenues were up 24%, base organic commission and fee revenues grew

3.3%, adjusted EBITDAC was up 34% and adjusted EBITDAC margin was up 150 basis points compared to the first quarter of 2013. Supplemental and contingent revenues remain strong as carriers recognize our growth and book loss experience. Our integration efforts continue to move forward as planned.

 For our Risk Management segment, adjusted total revenues were up 7%, base organic fee revenues grew 6%,

adjusted EBITDAC was up 8%, adjusted EBITDAC margin was up 10 basis points compared to the first quarter of 2013

and bettered our 16% margin target by 30 basis points.

"The rate environment remains steady with insurance carriers continuing to focus on profitable underwriting. We believe they are quoting rational prices on a line-by-line basis which allows us to demonstrate our expertise and high-quality value-added service. In addition, we are seeing our clients slowly expand their businesses and payrolls. Our global team is energized

and well positioned for 2014."

The following provides non-GAAP information that management believes is helpful when comparing 2014 revenues, EBITDAC and diluted net earnings per share with the same period in 2013:

(in millions) (in millions)

Brokerage, as adjusted

$ 567.6 $

457.0

24%

$ 110.7 $

82.4

34%

$ 0.29 $

0.22

32%

Gains on book sales 1.0 0.4 1.0 0.4 - - Acquisition integration - - (6.5) (3.0) (0.03) (0.02) Workforce & lease termination - - (2.2) - (0.01) - Acquisition related adjustments - - (1.1) - (0.01) (0.01) Levelized foreign currency translation - (3.0) - 0.5 - -

Brokerage, as reported 568.6 454.4 101.9 80.3 0.24 0.19

Risk Management, as adjusted 160.0 148.9 7% 26.0 24.1 8% 0.10 0.10 0% Workforce & lease termination - - (0.2) - - -

South Australia and claim portfolio

transfer ramp up - 1.4 (1.2) 1.3 (0.01) 0.01

Levelized foreign currency translation - 3.3 - 1.1 - - Risk Management, as reported 160.0 153.6 24.6 26.5 0.09 0.11

Total Brokerage & Risk

Management, as reported 728.6 608.0 126.5 106.8 0.33 0.30

Corporate, as reported 186.4 66.1 (6.0) (8.5) 0.03 0.02

Total Company, as reported

Total Brokerage & Risk

Management, as adjusted

$ 915.0 $

$ 727.6 $

674.1

605.9

20%

$ 120.5 $

$ 136.7 $

98.3

106.5

28%

$ 0.36 $

$ 0.39 $

0.32

0.32

22%

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Orga nic Re ve nue s (non-GAAP) 1st Q 14 1st Q 13 Base Commissions and Fees

Commissions as reported

$ 411.5 $

326.8

Fees as reported 97.6 86.7

Less commissions and fees from acquisitions (82.2) - Less disposed of operations - (2.8) Levelized foreign currency translation - 2.4

Organic base commissions and fees

$ 426.9 $

413.1

Organic change in base commissions and fees 3.3%

Supplemental commissions as reported

$ 25.4 $

17.3

Less supplemental commissions from acquisitions (7.3)-

Organic supplemental commissions

$ 18.1 $

17.3

Adjusted Compe nsation Expe nse and Ratio (non-GAAP) 1st Q 14 1st Q 13

Reported amounts

$ 356.1 $

287.7

Acquisition integration (3.6) (1.3) Workforce and lease termination related charges (1.7) - Acquisition related adjustments (1.1) -

Levelized foreign currency translation - 2.6

Adjusted amounts

$ 349.7 $

289.0

Adjusted ratios using adjusted revenues on page 1 * 61.6% 63.2%

* Adjusted first quarter compensation ratio was 1.6 pts lower than the same period in 2013. This ratio was primarily impacted by salary decreases of 0.6 pts and a reduction in employee benefits of 0.9 pts, both related to headcount controls.

Adjusted Operating Expense and Ratio (non-GAAP) 1st Q 14 1st Q 13

Reported amounts

$ 110.6 $

86.4

Acquisition integration (2.9) (1.7) Workforce and lease termination related charges (0.5) -

Levelized foreign currency translation - 0.9

Adjusted amounts

$ 107.2 $

85.6

Adjusted ratios using adjusted revenues on page 1 * 18.9% 18.7%

* Adjusted first quarter operating expense ratio was 0.2 pts higher than the same period in 2013. All items were consistent with the prior period.

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Adjusted EBITDAC (non-GAAP) 1st Q 14 1st Q 13

Total EBITDAC - see page 9 for computation

$ 101.9 $

80.3

Gains from books of business sales (1.0) (0.4) Acquisition integration * 6.5 3.0

Acquisition related adjustments 1.1 - Workforce and lease termination related charges 2.2 - Levelized foreign currency translation - (0.5)

* Acquisition integration - During first quarter 2014, integration costs related to the acquisitions of Giles and Bollinger totaled $4.2 million and $2.3 million, respectively. These costs were primarily related to the on-boarding of over 1,600 employees, communication system conversion costs and related performance compensation. Integration costs in first quarter 2013 relate to the Heath Lambert acquisition only.

The following is a summary of Brokerage segment acquisition activity for 2014 and 2013:

1st Q 14 1st Q 13

Shares issued for acquisitions and earnouts 738,000 - Number of acquisitions closed 9 4

Annualized revenues acquired (in millions)

$ 17.8 $

5.0

The table above does not include any information related to the April 1, 2014 acquisition of the Oval Group of Companies. Under the agreement, we purchased all of the outstanding equity of Oval for net cash consideration of approximately

$330 million. Oval is expected to annually generate over $135 million in revenues.

Orga nic Revenue s (Non-GAAP) 1st Q 14 1st Q 13

Fees

$ 155.5 $

147.3

International performance bonus fees 4.1 5.7

Fees as reported 159.6 153.0

Adjusted Compensation Expense and Ratio (non-GAAP) 1st Q 14 1st Q 13

Reported amounts

$ 99.9 $

91.6

South Australia and claim portfolio transfer ramp up costs (0.8) - Workforce and lease termination related charges (0.2) -

Levelized foreign currency translation - (1.9)

Adjusted amounts

$ 98.9 $

89.7

Adjusted ratios using adjusted revenues on page 1 * 61.8% 60.2%

* Adjusted first quarter compensation ratio was 1.6 pts higher than the same period in 2013. This ratio was primarily impacted by salary increases of 0.7 pts and increased incentive compensation of 0.9 pts.

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Adjusted Operating Expense and Ratio (non-GAAP)1st Q 14 1st Q 13

Reported amounts

$ 35.5 $

35.5

South Australia and claim portfolio transfer ramp up costs (0.4) (0.1) Levelized foreign currency translation - (0.3)

Adjusted amounts

$ 35.1 $

35.1

Adjusted ratios using adjusted revenues on page 1 * 21.9% 23.6%

* Adjusted first quarter operating expense ratio was 1.7 pts lower than the same period in 2013. This ratio was primarily impacted by savings in real estate and professional fees of 1.4 pts and decreased business insurance expense of

0.5 pts, partially offset by increased professional fees associated with client-centric service enhancements of 0.4 pts.

Adjusted EBITDAC (non-GAAP)1st Q 14 1st Q 13

Total EBITDAC - see page 9 for computation

$ 24.6 $

26.5

Workforce and lease termination related charges 0.2 - South Australia and claim portfolio transfer ramp up costs 1.2 (1.3) Levelized foreign currency translation - (1.1)

Adjusted EBITDAC

$ 26.0 $

24.1

Adjusted EBITDAC change 7.9% 7.6% Adjusted EBITDAC margin 16.3% 16.2%

(in millions):

Interest and banking costs

$ (16.6) $

6.6 $

(10.0) $

(11.9) $

4.8 $

(7.1)

Clean energy related 1.4 19.5 20.9 (0.9) 14.1 13.2

Acquisition costs (2.9) 0.4 (2.5) (1.0) 0.2 (0.8) Corporate (5.0) 1.2 (3.8) (6.0) 2.7 (3.3)

$ (23.1)$

27.7 $

4.6 $

(19.8) $

21.8 $

2.0

$100.0 million of which is due in August 2014 and $367.4 million of short-term borrowings under its line of credit facility. As previously announced, Gallagher in December 2013 entered into a note purchase agreement for a private placement of

$600 million of senior unsecured notes, which funded on February 27, 2014. Proceeds were primarily used to pay down its line of credit facility.

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On March 1, 2014, we acquired additional ownership interests in seven of the 2009 Era Plants and five of the 2011 Era Plants from a co-investor. All but one of our investments in these plants had been accounted for under the equity method of accounting. For all plants where our ownership is now over 50%, as of March 1, 2014 we consolidated the operations of the limited liability companies that own these plants. The transaction resulted in a non-cash after tax gain of $14.1 million, which resulted from a provisional estimate of fair value as of the transaction date

Gallaghe r's Portion of Estimated Additional

($ in millions) March 31, 2014 Investment Earnings *

Investments tha t ow n 2009 Era Plants

12 Under long-term production contracts

$ 13.9 $

1.0 $

22.6

2 In negotiations for long-term production contracts 0.7 Not Estimable Not Estimable

16 Under long-term production contracts 40.0 0.1 72.4

4 In negotiations for long-term production contracts 1.3 Not Estimable Not Estimable

* Reflects management's current best estimate of the ultimate future potential annual after-tax earnings based on production estimates from the host utilities. However, host utilities do not consistently utilize the refined fuel plants at ultimate production levels due to seasonal electricity demand, as well as many operational, regulatory and environmental compliance reasons.

Gallagher's investment in Chem-Mod generates royalty income from clean energy plants owned by those limited liability companies in which it invests as well as refined coal production plants owned by other unrelated parties. Based on current production estimates provided by licensees, Chem-Mod could generate for Gallagher approximately $4.0 million of net after- tax earnings per quarter.

All estimates set forth above regarding the potential future earnings impact of our clean energy investments are subject to significant risks. Please refer to Gallagher's filings with the SEC, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, for a more detailed discussion of these and other factors that could impact the information above.

Gallagher allocates the provision for income taxes to its Brokerage and Risk Management segments using the local country statutory rates. Gallagher historically has reported, and anticipates reporting for the foreseeable future, an effective tax rate of approximately 35% to 37% in both its Brokerage and Risk Management segments. Gallagher's consolidated effective tax rate for the quarter ended March 31, 2014 and 2013 was (6.4)% and 4.3%, respectively. Gallagher's tax rate for the quarter ended March 31, 2014 was lower than the statutory rate and was lower than 2013 due to the amount of IRC Section 45 tax credits earned in 2014 compared to 2013.

Gallagher will host a webcast conference call on Monday, April 7, 2014 at 10:00a.m. ET/9:00 a.m. CT. To listen to this call, please go to www.ajg.com. The call will be available for replay at such website for not less than 90 days.

Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 25 countries and offers client-service capabilities in more than 140 countries around the world through a network of correspondent brokers and consultants.

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The operating results and other financial information for the quarter ended March 31, 2014 presented in this press release are preliminary. Because the financial statements for the quarter ended March 31, 2014 have not yet been finalized, the results and other financial information regarding this period is subject to change, and actual results for this period may differ materially from these preliminary estimates. Accordingly, you should not place undue reliance on these preliminary estimates. See the "Risk Factors" section of the Company's Annual Report on Form 10-K. The Company does not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events or otherwise, except as otherwise required by law.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of

1995. When used in this press release, the words "anticipates," "believes," "contemplates," "see," "should," "could," "estimates," "expects," "intends," "plans" and variations thereof and similar expressions, are intended to identify forward- looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding (i) the amount of, and potential uses for, investment returns generated by Gallagher's clean energy investments; (ii) our corporate income tax rate; (iii) anticipated future results or performance of any segment or the Company as a whole (including recent new business wins in the Risk Management segment and the Giles acquisition); (iv) anticipated cost savings from workforce

reductions; (v) the premium rate environment; (vi) the economic environment; and (vii) anticipated funding under a note

purchase agreement.

Gallagher's actual results may differ materially from those contemplated by the forward-looking statements. Readers are therefore cautioned against relying on any of the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following:

 Risks and uncertainties related to Gallagher's clean energy investments including uncertainties related to political and regulatory risks, including potential actions by Congress or challenges by the IRS eliminating or reducing the availability of tax credits under IRC Section 45 retroactively and/or going forward; the ability to maintain and find co-investors; the potential for divergent business objectives by co-investors and other stakeholders; plant operational risks, including supply-chain risks; utilities' future use of, or demand for, coal; the market price of coal; the costs of moving a clean coal plant; intellectual property risks; and environmental risks - all could impact (i) and (ii) above; and

 Changes in worldwide and national economic conditions (including an economic downturn due to a U.S. government shutdown or default and uncertainty regarding the European debt crisis), changes in premium rates and in insurance markets generally and changes in the insurance brokerage industry's competitive landscape - all could impact (iii) - (vii) above.

Please refer to Gallagher's filings with the SEC, including Item 1A, "Risk Factors," of its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, for a more detailed discussion of these and other factors that could impact its forward- looking statements. Any forward-looking statement made by Gallagher in this press release speaks only as of the date on which it is made. Except as required by applicable law, Gallagher does not undertake to update the information included herein or the corresponding earnings release posted on Gallagher's website.

In addition to reporting financial results in accordance with GAAP, this press release provides information regarding EBITDAC, EBITDAC margin, adjusted EBITDAC, adjusted EBITDAC margin, diluted net earnings per share (as adjusted) for the Brokerage and Risk Management segments, adjusted revenues, adjusted compensation and operating expenses, adjusted compensation expense ratio, adjusted operating expense ratio and organic revenue measures for each operating segment. These measures are not in accordance with, or an alternative to, the GAAP information provided in this press release. Gallagher's management believes that these presentations provide useful information to management, analysts and investors regarding financial and business trends relating to Gallagher's results of operations and financial condition. Gallagher's industry peers may provide similar supplemental non-GAAP information related to organic revenues and EBITDAC, although they may not use the same or comparable terminology and may not make identical adjustments. The non-GAAP information provided by Gallagher should be used in addition to, but not as a substitute for, the GAAP information provided. Certain reclassifications have been made to the prior year amounts reported in this press release in order to conform them to the current year presentation.

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 Adjusted revenues and expenses - Gallagher defines these measures as revenues, compensation expense and operating expense, respectively, each adjusted to exclude net gains realized from sales of books of business, acquisition integration costs, New Zealand earthquake claims administration, South Australia and claim portfolio transfer ramp up fees/costs, workforce related charges, lease termination related charges, acquisition related adjustments and the impact of foreign currency translation, as applicable. Integration costs include costs related to transactions 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, extra lease space, duplicate services and external costs incurred to assimilate the acquisition with our IT related systems.

 Adjusted ratios - Adjusted compensation expense ratio and adjusted operating expense ratio are defined as adjusted compensation expense and adjusted operating expense, respectively, each divided by adjusted revenues.

 EBITDAC - Gallagher defines this measure as net earnings before interest, income taxes, depreciation, amortization and the change in estimated acquisition earnout payables.

 EBITDAC margin - Gallagher defines this measure as EBITDAC divided by total revenues.

 Adjusted EBITDAC - Gallagher defines this measure as EBITDAC adjusted to exclude net gains realized from sales of books of business, acquisition integration costs, workforce related charges, lease termination related charges, New Zealand earthquake claims administration costs, South Australia and claim portfolio transfer ramp up fees/costs, acquisition related adjustments and the period-over-period impact of foreign currency translation, as applicable.

 Adjusted EBITDAC margin - Gallagher defines this measure as adjusted EBITDAC divided by total adjusted revenues

(defined above).

 Diluted net earnings per share (as adjusted) for the Brokerage and Risk Management segments - Gallagher defines this measure as net earnings adjusted to exclude the after-tax impact of net gains realized from sales of books of business, acquisition integration costs, New Zealand earthquake claims administration, South Australia and claim portfolio transfer ramp up fees/costs, the impact of foreign currency translation, workforce related charges, lease termination related charges, acquisition related adjustments and effective income tax rate impact divided by diluted weighted average shares outstanding. The effective income tax rate impact represents the difference in income tax expense for tax amounts derived using the actual effective tax rate compared to tax amounts derived using a normalized effective tax rate.

year foreign exchange rates to the same periods in the prior year. For the Risk Management segment, organic change in fee revenues excludes the first twelve months of fee revenues generated from acquisitions accounted for as purchases and the fee revenues related to operations disposed of in each year presented. In addition, change in organic growth excludes the impact of South Australia ramp up fees, New Zealand earthquake claims administration and the period-over-period impact of foreign currency translation to improve the comparability of our results between periods by eliminating the impact of the items that have a high degree of variability or are due to the limited-time nature of these revenue sources.

These revenue items are excluded from organic revenues in order to determine a comparable measurement of revenue growth that is associated with the revenue sources that are expected to continue in the current year and beyond. Gallagher has historically viewed organic revenue growth as an important indicator when assessing and evaluating the performance of its Brokerage and Risk Management segments. Gallagher also believes that using this measure allows readers of our financial statements to measure, analyze and compare the growth from its Brokerage and Risk Management segments in a meaningful and consistent manner.

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and 3, respectively, for the Brokerage and Risk Management segments) , for adjusted compensation and operating expenses

and adjusted EBITDAC margin (on pages 3 and 4, respectively, for the Brokerage and Risk Management segments). Reported compensation and operating expense ratios can be found in the supplemental quarterly data available at www.ajg.com.

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Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 1st Qtr Ended March 31,

(Unaudited - in millions except per share, percentage and workforce data)

1st Q Ended 1st Q Ended

Revenues 568.6 454.4

Compensation 356.1 287.7
Operating 110.6 86.4
Depreciation 9.0 6.3
Amortization 37.4 29.0

Change in estimated acquisition earnout payables 5.1 4.4
Expenses 518.2 413.8

Earnings before income taxes 50.4 40.6
Provision for income taxes 17.8 16.0

Net earnings

EBITDAC

Net earnings

$ 32.6 $

$ 32.6 $

24.6

24.6
Provision for income taxes 17.8 16.0
Depreciation 9.0 6.3
Amortization 37.4 29.0
Change in estimated acquisition earnout payables 5.1 4.4

EBITDAC

$ 101.9 $

80.3

Risk Management Segment

1st Q Ended 1st Q Ended

Mar 31, 2014 Mar 31, 2013

Fees
$ 159.6 $
153.0

Investment income 0.4 0.6
Revenues 160.0 153.6

Compensation 99.9 91.6
Operating 35.5 35.5
Depreciation 4.9 4.4

Amortization 0.7 0.6
Expenses 141.0 132.1

Earnings before income taxes 19.0 21.5
Provision for income taxes 6.9 7.6

Net earnings

EBITDAC

Net earnings

$ 12.1 $

$ 12.1 $

13.9

13.9
Provision for income taxes 6.9 7.6
Depreciation 4.9 4.4
Amortization 0.7 0.6

EBITDAC

$ 24.6 $

26.5

1st Q Ended 1st Q Ended

Corporate Segment Mar 31, 2014 Mar 31, 2013

Revenues from consolidated clean coal facilities
$ 154.3 $
49.3
Royalty income from clean coal licenses 14.6 10.0

Loss from unconsolidated clean coal facilities (2.5) (2.3) Other net revenues 20.0 9.1
Revenues 186.4 66.1

Cost of revenues from consolidated clean coal facilities 171.0 58.1
Compensation 10.3 4.6
Operating 11.1 11.9
Interest 16.2 11.2

Depreciation 0.9 0.1
Expenses 209.5 85.9

Loss before income taxes (23.1) (19.8) Benefit for income taxes (27.7)(21.8)

Net earnings

EBITDAC

Net earnings

$ 4.6 $

$ 4.6 $

2.0

2.0
Benefit for income taxes (27.7) (21.8) Interest 16.2 11.2
Depreciation 0.9 0.1

EBITDAC

See "Information Regarding Non-GAAP Measures" on page 7 of 11.
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$ (6.0)$

(8.5)

Arthur J. Gallagher & Co.

Reported Statement of Earnings and EBITDAC - 1st Qtr Ended March 31,

(Unaudited - in millions except share and per share data)

Total Company

1st Q Ended 1st Q Ended

Mar 31, 2014 Mar 31, 2013

Commissions
$ 411.5 $
326.8
Fees 257.2 239.7
Supplemental commissions 25.4 17.3
Contingent commissions 32.2 22.5
Investment income and gains realized on books of business sales 2.3 1.7
Revenues from clean coal activities 166.4 57.0

Other net revenues - Corporate 20.0 9.1

Revenues 915.0 674.1
Compensation 466.3 383.9
Operating 157.2 133.8
Cost of revenues from clean coal activities 171.0 58.1
Interest 16.2 11.2
Depreciation 14.8 10.8
Amortization 38.1 29.6

Change in estimated acquisition earnout payables 5.1 4.4

Expenses 868.7 631.8
Earnings before income taxes 46.3 42.3
Provision (benefit) for income taxes (3.0)1.8

Net earnings

$ 49.3 $

40.5

Diluted net earnings per share
Dividends declared per share

EBITDAC

Net earnings

$ 0.36 $

$ 0.36 $
$ 49.3 $
0.32
0.35
40.5
Provision (benefit) for income taxes (3.0) 1.8
Interest 16.2 11.2
Depreciation 14.8 10.8
Amortization 38.1 29.6
Change in estimated acquisition earnout payables 5.1 4.4

EBITDAC

$ 120.5 $

98.3

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

Mar 31, 2014 Dec 31, 2013

Cash and cash equivalents
$ 739.2 $
298.1
Restricted cash 915.9 1,027.4
Premiums and fees receivable 1,253.4 1,288.8
Other current assets 289.5 261.3 Total current assets 3,198.0 2,875.6
Fixed assets - net 165.9 160.4
Deferred income taxes 292.9 279.8
Other noncurrent assets 383.0 320.7
Goodwill - net 2,142.0 2,145.2
Amortizable intangible assets - net 1,093.8 1,078.8
Total assets
Premiums payable to insurance and reinsurance companies

$ 7,275.6 $
$ 1,974.7 $
6,860.5
2,154.7
Accrued compensation and other accrued liabilities 471.9 370.6
Unearned fees 86.6 84.5
Other current liabilities 33.0 44.5
Corporate related borrowings - current 467.4 630.5 Total current liabilities 3,033.6 3,284.8
Corporate related borrowings - noncurrent 1,425.0 825.0
Other noncurrent liabilities 672.8 665.2 Total liabilities 5,131.4 4,775.0
Stockholders' equity:
Common stock - issued and outstanding 135.1 133.6
Capital in excess of par value 1,405.3 1,358.1
Retained earnings 596.9 596.4
Accumulated other comprehensive income (loss) 6.9 (2.6)
Total stockholders' equity 2,144.2 2,085.5
Total liabilities and stockholders' equity
See "Information Regarding Non-GAAP Measures" on page 7 of 11.
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$ 7,275.6 $

6,860.5

Arthur J. Gallagher & Co. Other Information and Notes (Unaudited - data is rounded where indicated)

1st Q Ended 1st Q Ended

OTHER INFORMATION Mar 31, 2014 Mar 31, 2013

Basic weighted average shares outstanding (000s) 134,230 126,165
Diluted weighted average shares outstanding (000s) 135,840 127,543
Common shares repurchased (000s) - - Common shares issued for acquisitions and earnouts (000s) 738 - Number of acquisitions closed 9 4
Annualized revenues acquired (in millions) Workforce at end of period (includes acquisitions):
$ 17.8 $
5.0
Brokerage 11,143 8,966
Risk Management 4,861 4,500
Total Company 16,340 13,760

Contact: Marsha Akin

Director - Investor Relations

630-285-3501 or marsha_akin@ajg.com

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