XML 38 R28.htm IDEA: XBRL DOCUMENT
v3.23.3

Business Combinations (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Business Combinations [Abstract] |
Acquisition Method for Recording Business Combinations | During the nine-month period ended September 30, 2023, we acquired substantially all of the ownership interest or net assets, as applicable, of the following firms in exchange for our common stock and/or cash. These acquisitions have been accounted for using the acquisition method for recording business combinations (in millions, except share data):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  |  | Maximum |
|  | Common |  |  | Common |  |  |  |  |  |  |  |  |  |  |  | Recorded |  |  | Recorded |  |  | Potential |
Name and Effective |  | Shares |  |  | Share |  |  |  |  |  | Accrued |  |  | Escrow |  |  | Earnout |  |  | Purchase |  |  | Earnout |
Date of Acquisition |  | Issued |  |  | Value |  |  | Cash Paid |  |  | Liability |  |  | Deposited |  |  | Payable |  |  | Price |  |  | Payable |
|  | (000s) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
First Ireland Risk Management Ltd. January 1, 2023 (FIR) |  |  | — |  |  | $ | — |  |  | $ | 86.4 |  |  | $ | — |  |  | $ | 5.3 |  |  | $ | 5.9 |  |  | $ | 97.6 |  |  | $ | 6.6 |
BCHR Holdings, L.P. dba Buck April 1, 2023 (BCHR) |  |  | — |  |  |  | — |  |  |  | 600.8 |  |  |  | 0.5 |  |  |  | 19.5 |  |  |  | — |  |  |  | 620.8 |  |  |  | — |
Boley-Featherston-Huffman & Deal Co. April 1, 2023 (BFH) |  |  | 243 |  |  |  | 45.2 |  |  |  | 8.8 |  |  |  | — |  |  |  | 6.0 |  |  |  | 7.9 |  |  |  | 67.9 |  |  |  | 15.0 |
Tay River Holdings Limited April 1, 2023 (TRH) |  |  | — |  |  |  | — |  |  |  | 40.3 |  |  |  | 4.3 |  |  |  | 2.4 |  |  |  | 32.4 |  |  |  | 79.4 |  |  |  | 88.7 |
Insurance by Ken Brown May 1, 2023 (IKB) |  |  | 273 |  |  |  | 53.9 |  |  |  | 1.8 |  |  |  | — |  |  |  | 2.9 |  |  |  | 11.0 |  |  |  | 69.6 |  |  |  | 17.5 |
RHP General Agency May 1, 2023 (RHP) |  |  | 335 |  |  |  | 65.7 |  |  |  | 1.3 |  |  |  | — |  |  |  | 5.0 |  |  |  | 3.3 |  |  |  | 75.3 |  |  |  | 11.0 |
Thirty-one other acquisitions completed in 2023 |  |  | 116 |  |  |  | 19.5 |  |  |  | 496.8 |  |  |  | 8.7 |  |  |  | 25.9 |  |  |  | 96.3 |  |  |  | 647.2 |  |  |  | 160.0 |
|  |  | 967 |  |  | $ | 184.3 |  |  | $ | 1,236.2 |  |  | $ | 13.5 |  |  | $ | 67.0 |  |  | $ | 156.8 |  |  | $ | 1,657.8 |  |  | $ | 298.8 |
On October 24, 2023, we signed a definitive agreement to acquire all the issued and outstanding shares of capital stock of Cadence Insurance, Inc. (Cadence Insurance), a wholly-owned subsidiary of Cadence Bank, for consideration of approximately $749 million, which is net of a discounted tax benefit associated with the transaction of approximately $155 million. The transaction is subject to regulatory approval, standard closing conditions and is expected to close during the fourth quarter of 2023. Cadence Insurance offers a full suite of commercial property/casualty, employee benefits and personal lines products to clients from 34 offices spanning 9 states across the Southeast, including Texas. On September 19, 2023, we signed a definitive agreement to acquire the assets of Eastern Insurance Group, LLC (Eastern Insurance), a subsidiary of Eastern Bank, a wholly-owned subsidiary of Eastern Bankshares, Inc. for consideration of approximately $510 million net of agreed seller funded expenses. The transaction is subject to regulatory approval, key employee retention closing conditions and is expected to close during the fourth quarter of 2023. Eastern Insurance offers comprehensive commercial property/casualty and personal lines products as well as employee benefits consulting to clients throughout the Northeastern U.S. On April 3, 2023, we acquired the partnership interests of BCHR holdings, L.P. and its subsidiaries dba Buck (which we refer to as Buck). We funded the transaction using free cash flow and funds received from an unsecured senior notes offering. Buck was a leading provider of retirement, human resources and employee benefits consulting and administration services operating for more than 100 years with a diverse client base by both size and industry. Immediately prior to closing, Buck had over 2,300 employees, including more than 220 credentialed actuaries, primarily serving customers throughout the U.S., Canada and the U.K.
Summary of Estimated Fair Values of Net Assets Acquired | The following is a summary of the estimated fair values of the net assets acquired at the date of each acquisition made in the nine-month period ended September 30, 2023 (in millions):
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Thirty-one Other |  |  |  |
|  | FIR |  |  | BCHR |  |  | BFH |  |  | TRH |  |  | IKB |  |  | RHP |  |  | Acquisitions |  |  | Total |
Cash and cash equivalents |  | $ | 13.0 |  |  | $ | 25.8 |  |  | $ | 0.6 |  |  | $ | 5.3 |  |  | $ | 2.0 |  |  | $ | — |  |  | $ | 19.0 |  |  | $ | 65.7 |
Fiduciary assets |  |  | 13.8 |  |  |  | — |  |  |  | 3.7 |  |  |  | — |  |  |  | 0.5 |  |  |  | 3.0 |  |  |  | 40.7 |  |  |  | 61.7 |
Other current assets |  |  | 1.5 |  |  |  | 60.9 |  |  |  | 1.4 |  |  |  | 8.3 |  |  |  | 2.6 |  |  |  | 1.5 |  |  |  | 15.2 |  |  |  | 91.4 |
Fixed assets |  |  | 0.8 |  |  |  | 36.8 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | 0.7 |  |  |  | 38.4 |
Noncurrent assets |  |  | 8.6 |  |  |  | 53.2 |  |  |  | 0.2 |  |  |  | 0.3 |  |  |  | 0.5 |  |  |  | 0.3 |  |  |  | 12.0 |  |  |  | 75.1 |
Goodwill |  |  | 58.8 |  |  |  | 395.8 |  |  |  | 38.5 |  |  |  | 50.0 |  |  |  | 43.8 |  |  |  | 49.6 |  |  |  | 321.4 |  |  |  | 957.9 |
Expiration lists |  |  | 27.5 |  |  |  | 202.4 |  |  |  | 37.4 |  |  |  | 22.0 |  |  |  | 30.4 |  |  |  | 34.0 |  |  |  | 314.2 |  |  |  | 667.9 |
Non-compete agreements |  |  | 4.3 |  |  |  | — |  |  |  | 0.4 |  |  |  | 2.2 |  |  |  | 0.2 |  |  |  | 0.2 |  |  |  | 8.3 |  |  |  | 15.6 |
Trade names |  |  | — |  |  |  | 2.6 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1.6 |  |  |  | 4.2 |
Total assets acquired |  |  | 128.3 |  |  |  | 777.5 |  |  |  | 82.2 |  |  |  | 88.1 |  |  |  | 80.1 |  |  |  | 88.6 |  |  |  | 733.1 |  |  |  | 1,977.9 |
Fiduciary liabilities |  |  | 13.8 |  |  |  | — |  |  |  | 3.7 |  |  |  | — |  |  |  | 0.5 |  |  |  | 3.0 |  |  |  | 40.7 |  |  |  | 61.7 |
Current liabilities |  |  | 3.9 |  |  |  | 53.0 |  |  |  | 0.6 |  |  |  | 2.6 |  |  |  | 1.7 |  |  |  | 1.2 |  |  |  | 12.6 |  |  |  | 75.6 |
Noncurrent liabilities |  |  | 13.0 |  |  |  | 103.7 |  |  |  | 10.0 |  |  |  | 6.1 |  |  |  | 8.3 |  |  |  | 9.1 |  |  |  | 32.6 |  |  |  | 182.8 |
Total liabilities assumed |  |  | 30.7 |  |  |  | 156.7 |  |  |  | 14.3 |  |  |  | 8.7 |  |  |  | 10.5 |  |  |  | 13.3 |  |  |  | 85.9 |  |  |  | 320.1 |
Total net assets acquired |  | $ | 97.6 |  |  | $ | 620.8 |  |  | $ | 67.9 |  |  | $ | 79.4 |  |  | $ | 69.6 |  |  | $ | 75.3 |  |  | $ | 647.2 |  |  | $ | 1,657.8 |
Summary of Unaudited Pro Forma Historical Results | The following is a summary of the unaudited pro forma historical results, as if these entities had been acquired at January 1, 2022 (in millions, except per share data):
| Three-month period ended |  |  | Nine-month period ended |
| September 30, |  |  | September 30, |
| 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Total revenues | $ | 2,500.4 |  |  | $ | 2,159.0 |  |  | $ | 7,781.9 |  |  | $ | 6,877.5 |
Net earnings attributable to controlling interests |  | 280.1 |  |  |  | 255.2 |  |  |  | 1,005.7 |  |  |  | 982.7 |
Basic net earnings per share |  | 1.30 |  |  |  | 1.21 |  |  |  | 4.68 |  |  |  | 4.66 |
Diluted net earnings per share |  | 1.27 |  |  |  | 1.18 |  |  |  | 4.59 |  |  |  | 4.57 |

X
- Definition Schedule Of Business Acquisition, Acquisition of assets [Text Block] + References No definition available. + Details
Name: | ajg_ScheduleOfBusinessAcquisitionAcquisitionOfAssetsTableTextBlock
Namespace Prefix: | ajg_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule Of Business Acquisition, Pro Forma [Text Block] + References No definition available. + Details
Name: | ajg_ScheduleOfBusinessAcquisitionProFormaTableTextBlock
Namespace Prefix: | ajg_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479328/805-10-50-3 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479328/805-10-50-2 + Details
Name: | us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration