<SEC-DOCUMENT>0001193125-24-084779.txt : 20241016
<SEC-HEADER>0001193125-24-084779.hdr.sgml : 20241016
<ACCEPTANCE-DATETIME>20240402162027
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-24-084779
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20240402

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Arthur J. Gallagher & Co.
		CENTRAL INDEX KEY:			0000354190
		STANDARD INDUSTRIAL CLASSIFICATION:	INSURANCE AGENTS BROKERS & SERVICES [6411]
		ORGANIZATION NAME:           	02 Finance
		IRS NUMBER:				362151613
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		2850 GOLF ROAD
		CITY:			ROLLING MEADOWS
		STATE:			IL
		ZIP:			60008-4050
		BUSINESS PHONE:		630-773-3800

	MAIL ADDRESS:	
		STREET 1:		2850 GOLF ROAD
		CITY:			ROLLING MEADOWS
		STATE:			IL
		ZIP:			60008-4050

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ARTHUR J. GALLAGHER & CO.
		DATE OF NAME CHANGE:	20190819

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GALLAGHER ARTHUR J & CO
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML><HEAD>
<TITLE>CORRESP</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE" STYLE="line-height:Normal">


<Center><DIV STYLE="width:8.5in" align="left">

<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">


<TR>

<TD WIDTH="7%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">


<IMG SRC="g816829dsp01.jpg" ALT="LOGO">
</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="middle" NOWRAP>Arthur&nbsp;J.&nbsp;Gallagher&nbsp;&amp;&nbsp;Co.&#8194;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">April&nbsp;2, 2024 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>VIA
EDGAR </U></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms.&nbsp;Cara Lubit </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr.&nbsp;Robert Klein </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange
Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F St. NE </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, DC 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="9%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>Re:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Arthur J. Gallagher&nbsp;&amp; Co. </B></P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="9%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&#8195;</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year ended December&nbsp;31, 2023
</B></P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="9%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&#8195;</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>Filed February&nbsp;9, 2024 </B></P></TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="9%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><B>&#8195;</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;001-09761</FONT> </B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Lubit and Mr.&nbsp;Klein: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On behalf of Arthur J.
Gallagher&nbsp;&amp; Co. (&#147;we&#148;, &#147;our&#148; or the &#147;Company&#148;), this letter responds to your letter dated March&nbsp;19, 2024 to Douglas K. Howell, Chief Financial Officer, which sets forth the comments of the Staff of the
Division of Corporation Finance of the Securities and Exchange Commission (the &#147;Staff&#148;) on Arthur J. Gallagher&nbsp;&amp; Co.&#146;s Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the fiscal year ended December&nbsp;31, 2023 (the
&#147;2023 Form <FONT STYLE="white-space:nowrap">10-K&#148;)</FONT> filed on February&nbsp;9, 2024. The Staff&#146;s comments are set forth below, followed by our related responses. If you have further questions, we would be pleased to discuss the
response with you at your convenience. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the Fiscal Year ended December&nbsp;31, 2023
</U></I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Note 5. Change in Presentation of Fiduciary Assets and Liabilities, page 89 </U></I></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>1.</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>We note your disclosure that you revised your balance sheet and statement of cash flows presentation to
separately identify and present fiduciary assets and liabilities and that you also made certain revisions to fiduciary balances related to the former Willis Re operations from gross to net presentation to align with your accounting policy and
presentation. For each change and revision reflected in the financial statements, please address the items below. </B></P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="2%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><I>Clarify whether you concluded that your prior presentation (e.g., gross to net, statement of cash flow
classification, etc.) was an error and how you considered ASC</I></B><B><I></I></B><B><I>&nbsp;250 in your determination.</I></B> </P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">2850
Golf Road </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Rolling Meadows, IL 60008 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">630.773.3800 </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">www.ajg.com </P>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 2
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="2%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><I>To the extent applicable, provide us with a detailed description of any error(s), including but not limited
to who identified them, when and how, whether they were the result of control deficiencies, as well as your assessment of materiality, individually and in the aggregate, that addresses both qualitative and quantitative factors and consideration of
guidance in ASC</I></B><B><I></I></B><B><I>&nbsp;250, SAB</I></B><B><I></I></B><B><I>&nbsp;99, and management&#146;s assessment of design and effectiveness of ICFR.</I></B> </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="2%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><B><I>Provide us with an accounting analysis, citing authoritative literature, explaining your presentation
before and after implementing these changes to your presentation. For example, explain why net change in fiduciary assets and liabilities appears to have moved from operating activities to financing activities within the statement of cash
flows.</I></B> </P></TD></TR></TABLE> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>RESPONSE </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Background </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As an insurance broker, we hold funds in a
fiduciary capacity on behalf of clients, including premiums received from clients and claims due to clients that are in transit to and from insurers and reinsurers. Certain funds held on behalf of clients are invested in interest-bearing premium
trust accounts, which qualify as cash equivalents, and can fluctuate significantly depending on when we collect and remit cash. We earn interest income on these accounts, which is classified as revenues on the Company&#146;s consolidated statement
of earnings. We have historically presented and will continue to present fiduciary cash, fiduciary receivables and fiduciary liabilities in our consolidated balance sheet, which is consistent with the presentation of certain other issuers who also
control and hold funds on behalf of their clients. In addition, we have historically presented net cash inflows and outflows related to fiduciary cash, fiduciary receivables and fiduciary liabilities in our consolidated statement of cash flows
within cash flows from operating activities and included fiduciary cash in our reconciliation of beginning and end of period cash, cash equivalents, restricted cash and fiduciary cash. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We continually evaluate our own financial statement presentations and footnote disclosures to assess whether we can provide enhanced comparable and
transparent information for investors as well as continued compliance with GAAP and Securities and Exchange Commission (&#147;SEC&#148;) requirements. We also consider the needs of readers of our financial statements as a whole. In addition, we
compare our financial statements and footnote disclosures to our primary insurance brokerage peers, including Aon plc (&#147;Aon&#148;), Brown&nbsp;&amp; Brown, Inc. (&#147;Brown&#148;), Willis Towers Watson plc (&#147;WTW&#148;) and
Marsh&nbsp;&amp; McLennan Companies, Inc. (&#147;Marsh&#148;). We had recently noted that our financial statement presentation of fiduciary assets and liabilities differed from that of most of our peers in that our fiduciary assets did not equal our
fiduciary liabilities, primarily because we included agency billed commissions and fees receivables in premiums and fees receivables rather than separately identifying and presenting them as accounts receivables. In addition, fiduciary cash was
included in restricted cash and certain of our fiduciary items were comingled with other current asset and liability accounts, whereas most of our peers include them as fiduciary assets that equal fiduciary liabilities. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In our disclosures we also noted that we present the change in fiduciary assets and liabilities in the operating section of the statement of cash flows,
whereas our peers recently changed their presentation to provide such information in the financing section of their statement of cash flows. In their respective periodic reporting, our peers reclassified their cash flow presentation in earlier
periods in Q4 2021 (for Aon, WTW and Marsh) and Q1 2022 (for Brown). Prior to Q4 2021, Aon, WTW and Marsh </P>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 3
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">
did not reflect fiduciary/restricted cash as total cash in their statement of cash flows. Prior to Q1 2022, Brown presented fiduciary assets and liabilities on the balance sheet and the
fiduciary/restricted cash in the statement of cash flows in a manner similar to our former presentation. Please see our peers&#146; Annual Reports on <FONT STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> for the applicable periods for the
disclosures and changes in presentations discussed above. With the exception of Brown, the presentation changes made by our peers were not relevant to our overall presentation because we historically included all cash and cash equivalents (in
accordance with our policy), including fiduciary/restricted cash, in our consolidated statement of cash flows. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Overview of Balance Sheet and Statement
of Cash Flows Reclassification Project </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Although the Company was aware of the different approaches taken by its peers for many years, changes they made
in the presentation of fiduciary activity in the statement of cash flows in 2021 and 2022 led us to evaluate our presentation of fiduciary assets and liabilities on our balance sheet in the first quarter of 2023. As a result, we determined to change
the fiduciary cash presentation in our balance sheet and statement of cash flows to align with our peers and improve comparability of these items for our investors, analysts and other users of our financial statements. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">A primary result of our balance sheet and statement of cash flows reclassification project was to separately identify and present fiduciary assets that equal
fiduciary liabilities. In addition, while we have always presented fiduciary cash and changes thereto in the statement of cash flows, we decided to present the net changes in fiduciary assets/liabilities (i.e., impact on fiduciary cash) in the
financing section of the statement of cash flows versus the operating section where it has historically been presented. The impact of our balance sheet and statement of cash flows reclassification project on the December&nbsp;31, 2022 balance sheet
and the statement of cash flows for the years ended December&nbsp;31, 2022 and 2021 (operating activities) was presented in Note&nbsp;5 to the consolidated financial statements on pages 89 to 91 of our 2023
<FONT STYLE="white-space:nowrap">Form&nbsp;10-K.</FONT> We first made these disclosures in Note&nbsp;1 to the consolidated financial statements in our first quarter 2023 <FONT STYLE="white-space:nowrap">Form&nbsp;10-Q.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As discussed below, we evaluated the change in presentation of fiduciary assets and liabilities under ASC&nbsp;250 and determined that our revised
presentation of fiduciary assets and liabilities on the balance sheet and the change in the net fiduciary assets/liabilities (i.e., impact on fiduciary cash) in the statement of cash flows is not a change in accounting principle nor a correction of
an error. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">However, we also identified two balance sheet errors, as discussed below. The first balance sheet error related to the incorrect application of
our accounting policy related to the Willis Re acquisition in December 2021 that resulted in a <FONT STYLE="white-space:nowrap">gross-up</FONT> of both the fiduciary assets and liabilities on the consolidated balance sheet as of December&nbsp;31,
2022 and 2021. The second balance sheet error related to the untimely identification/application of fiduciary cash. In the first quarter of 2023, we evaluated the materiality of these two errors in the December&nbsp;31, 2022 balance sheet pursuant
to guidance in ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">250-10-45</FONT></FONT> and ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">250-10-S99,</FONT></FONT> which incorporates the guidance in Staff
Accounting Bulletin (&#147;SAB&#148;) No.&nbsp;99 &#147;Materiality&#148; and SAB No.&nbsp;108 (SAB Topic 1.N: Quantifying Misstatements in Financial Statements). In accordance with such guidance, we concluded prior to the issuance of the 2023 <FONT
STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> and Q1 2023 <FONT STYLE="white-space:nowrap">Form&nbsp;10-Q</FONT> that the facts and circumstances relating to these two balance sheet errors did not present a substantial likelihood of affecting the
judgment of a reasonable investor and, therefore, were not material. </P>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 4
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Statement of Cash Flows Reclassifications </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The impact of the above-referenced balance sheet journal entries on the statement of cash flows for the fiscal years ended December&nbsp;31, 2022 and 2021
(operating activities) was presented in Note&nbsp;5 to the consolidated financial statements on pages 89 to 91 of our 2023 Form <FONT STYLE="white-space:nowrap">10-K.</FONT> In addition to these changes, we moved the net change in fiduciary assets
and liabilities from the operating section to the financing section of the statement of cash flows. Ernst&nbsp;&amp; Young LLP (&#147;EY&#148;) updated its interpretive guidance related to Accounting Standard Codification 230 &#150; Statement of
Cash Flows (ASC&nbsp;230) in January 2022.<SUP STYLE="font-size:75%; vertical-align:top">1</SUP> Within the updated interpretive guidance, EY stated that when an entity recognizes cash or cash equivalents held on behalf of its customers on its
balance sheet, because it controls the cash or cash equivalents, those amounts should be included in the statement of cash flows, regardless of what balance sheet line item those amounts are included in, which was consistent with the historical
presentation in our statement of cash flows. The guidance also stated that the cash inflows and cash outflows from cash and cash equivalents held on behalf of customers should be classified based on the nature of the underlying cash flows and that
it was understood that the Staff believes these cash flows are most appropriately classified as financing activities; however, classification as operating activities may also be acceptable. We note that Deloitte has similar guidance in its
interpretative cash flow presentation guidance. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Based on this clarified interpretive guidance and changes made by our peer group, we revised the
presentation of our consolidated statements of cash flows for the fiscal years ended December&nbsp;31, 2023, 2022, and 2021 to move the presentation of net changes in fiduciary receivables and liabilities activity from the operating section to the
financing section of the statement of cash flows. This reclassification had no impact on the consolidated statements of earnings, statements of comprehensive earnings or statements of stockholders&#146; equity for any period presented. Further,
there was no change to any of our key metrics identified by management and deemed meaningful to our investors and analysts, as described in further detail in the following section. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Authoritative Guidance </B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>ASC</I><I></I><I>&nbsp;250 - Accounting Changes and Error Corrections</I> </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>ASC</I><I></I><I>&nbsp;205</I><I> - Presentation of Financial Statements</I> </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We evaluated the change in presentation of fiduciary assets and liabilities as an accounting change under ASC&nbsp;250 and determined that our revised
presentation of fiduciary assets and liabilities on the balance sheet and the change in fiduciary assets/liabilities (fiduciary cash) in the statement of cash flows was not related to an accounting change, as it was not the result of a change from
the following: accounting principle, accounting estimate or reporting entity. The large accounting firms are generally aligned in their issued guidance that changes in presentation, unless GAAP otherwise provides for presentation alternatives (e.g.,
shipping/handling), are not changes in accounting policy but rather reclassifications. </P> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:11%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:75%; vertical-align:top">1</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><I>See</I> Section&nbsp;4.7, &#147;Change in Classification,&#148; in Ernst&nbsp;&amp; Young LLP, Statement of
Cash Flows (July 2023), available at <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">https://www.ey.com/en_us/assurance/accountinglink/financial-reporting-developments---statement-of-cash-flows</FONT></FONT> (&#147;The statement of
cash flows guidance in ASC 230 is principles based. As such, there may be more than one acceptable presentation for certain cash flow classifications on the statement of cash flows. However, we believe cash flow presentation should be consistently
applied to similar transactions. Nonetheless, if GAAP does not provide specific alternatives, we believe a change in classification from one acceptable classification to another is a reclassification and not a voluntary change in accounting
principle. When an entity changes the classification of a cash flow item on the statement of cash flows, prior periods presented (if applicable) should be adjusted to reflect the new classification in accordance with ASC <FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">205-10-45-3,</FONT></FONT></FONT> and the change in presentation should be clearly disclosed in accordance with ASC <FONT STYLE="white-space:nowrap"><FONT
STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">205-10-50-1&#148;).</FONT></FONT></FONT> </P></TD></TR></TABLE>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 5
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We evaluated whether the change in presentation of the fiduciary asset and liabilities was the result of an
error and determined that the Company&#146;s change in presentation of fiduciary assets and liabilities on the balance sheet and the changes within the fiduciary assets/liabilities (fiduciary cash) and other lines in the operating section of the
statement of cash flows was not the result of an accounting error. In addition, the movement of fiduciary assets/liabilities (i.e., impact on fiduciary cash) from the operating section to the financing section was not considered an accounting error.
We considered the following in reaching the above determinations: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Our revised presentations, as well as our previous financial statements, were both in compliance with acceptable
accounting methods.<SUP STYLE="font-size:75%; vertical-align:top">2</SUP> </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">ASC&nbsp;230 notes that all controlled cash and cash equivalents, including controlled funds held on behalf of
third parties should be included in the statement of cash flows, which is consistent with our historical and revised presentations. However, regarding the presentation of the net change in fiduciary assets and liabilities within the statement of
cash flows, there is diversity in practice related to the operating section or the financing section presentation. We understand that the Staff has a preference that such funds should be presented within the financing section, which is consistent
with our revised presentation. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Since we became a public company in 1984, we have treated fiduciary assets and liabilities as part of our
operations and presented the net change in fiduciary assets and liabilities in the operating section of the statement of cash flows as there was no formally issued accounting guidance related to this matter and we have earned interest income on most
of the fiduciary cash we held. Thus, our accounting and presentation for fiduciary assets and liabilities in our financial statements was historically appropriate. In addition, we discussed the impact of fiduciary assets and liabilities on our net
cash flows from operating activities in the Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations section of our periodic reports under the former presentation. </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">In light of the changes in presentation to the statement of cash flows made by our peers, we reassessed the
historical presentation and determined that the reclassification from the operating section to the financing section would provide more comparability for users of our financial statements. Further, moving the net change in fiduciary assets and
liabilities to the financing section better reflects the characteristics of the Company coming into possession of funds with a direct offsetting liability obligation to distribute those funds either to the original party or to a third party
designated by such original party (i.e., the carriers for premiums or the insureds for claims). </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The revised presentation did not impact stockholders&#146; equity or any amounts in the statement of earnings.
</P></TD></TR></TABLE> <P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:11%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:75%; vertical-align:top">2</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><I>See</I> Section&nbsp;6.1.2, &#147;Error correction versus a reclassification,&#148; in Ernst&nbsp;&amp;
Young LLP, Accounting changes and error corrections (September 2023), available at
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">https://www.ey.com/en_us/assurance/accountinglink/financial-reporting-developments---accounting-changes-and-error-</FONT></FONT> (&#147;A reclassification is a change in
classification of the amount presented in financial statements to conform the presentation of prior period(s) to the current period. Such a change maintains comparability among the periods presented. A reclassification is a change from one
presentation that complies with US&nbsp;GAAP to another presentation that complies with US GAAP&#148;). </P></TD></TR></TABLE>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 6
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The revised presentation resulted in a change to where the related activity is presented in the statement of cash
flows but did not materially impact net cash provided by operating activities or net cash (used) provided by financing activities. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Except for the immaterial balance sheet errors discussed below, we concluded that the changes in the presentation of the fiduciary assets and liabilities in
the balance sheet and the statement of cash flows were not the result of an error. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We next referred to ASC&nbsp;205. We determined that since the
fiduciary balance sheet changes discussed above did not meet the requirements of a change in accounting principle and were not the result of an error, then the changes were the result of a change in presentation per ASC&nbsp;205. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">A change in presentation is usually not considered an accounting change and therefore does not require retrospective application under ASC&nbsp;250.<SUP
STYLE="font-size:75%; vertical-align:top">3</SUP> However, we determined that consistent with the general requirements of ASC&nbsp;205, we would revise prior-period information to conform to the presentation in the current period. Additionally,
consistent with the general requirements of ASC&nbsp;205, we determined that we should provide the following disclosures in the period of the change: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The nature of and reason for the revised presentation. </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">The fact that comparative information had been revised. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The revised presentation achieved two primary goals: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Aligned the Company&#146;s presentation with that of our peers. See our peers&#146; Annual Reports on <FONT
STYLE="white-space:nowrap">Form&nbsp;10-K</FONT> for 2022 and 2023. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Improved the transparency of the fiduciary assets and liabilities in our balance sheet and statement of cash
flows to better enable our investors, analysts and rating agencies to evaluate and model our financial information. </P></TD></TR></TABLE>
<P STYLE="line-height:8.0pt;margin-top:0pt;margin-bottom:2pt;border-bottom:1px solid #000000;width:11%">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><SUP STYLE="font-size:75%; vertical-align:top">3</SUP>&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><I>See</I> <I>id.</I>, Section&nbsp;3.4.3, &#147;Assessing reclassifications for a voluntary change in
accounting principle&#148; (&#147;ASC 250 does not provide specific discussion on determining whether a reclassification would be considered a change in accounting principle. However, while PCAOB Auditing Standard No.&nbsp;2820, Evaluating
Consistency of Financial Statements (AS No.&nbsp;2820), is applicable to auditors, it may provide constructive information for entities to consider. Under AS No.&nbsp;2820, changes in classification in previously issued financial statements do not
require recognition in the auditor&#146;s report unless the change represents the correction of a material misstatement or a change in accounting principle. A material change in financial statement classification and the related disclosure should be
evaluated to determine whether the change is a permissible reclassification . . . . , a change in accounting principle . . . or a correction of a material misstatement . . . . An example of a correction of a misstatement may be a reclassification of
cash flows from the operating activity category to the financing activity category if the initial inclusion in the operating category was not in accordance with US&nbsp;GAAP. Entities should also determine whether the applicable ASC Topic addresses
the accounting for classifications. For example, ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">740-10-45-25</FONT></FONT></FONT> states that penalties associated with an uncertain tax position
may be classified as either income tax expense or another expense classification based on an accounting policy election. If the entity changes the classification from the accounting policy decision, that would be considered a change in accounting
principle. We believe changes in classification among key financial statement sections (e.g., a change in the classification of shipping and handling activities on the income statement) would generally be considered a change in accounting principle.
.. . . Otherwise, when US&nbsp;GAAP is silent about presentation, and a company changes from one acceptable presentation to another, the change generally represents a reclassification and is not a change in accounting principle. For example, if
US&nbsp;GAAP does not provide specific alternatives, we believe a change in cash flow classification on the statement of cash flows from one acceptable classification to another is a reclassification and not a voluntary change in accounting
principle&#148;). </P></TD></TR></TABLE>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 7
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Balance Sheet Reclassifications </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">During the execution of the fiduciary asset and liability reclassification project, we prepared a series of prior-period reclassification entries (for 2021 and
2022) to provide more comparability and transparency for our fiduciary assets and liabilities. The project primarily resulted in the reclassification of all known fiduciary assets and liabilities to quantify and summarize all fiduciary assets and
liabilities into separate lines in the consolidated balance sheet. These reclassifications are considered to be changes in presentation. The fiduciary reclassification project also included journal entries to correct the presentation of the improper
<FONT STYLE="white-space:nowrap">gross-up</FONT> of some former Willis Re (as defined below) fiduciary-related receivables and payables and the presentation of unapplied and unidentified fiduciary cash that were specifically identified during this
project as further explained below. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Willis Re <FONT STYLE="white-space:nowrap">Gross-Ups:</FONT> </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">On December&nbsp;1, 2021, we acquired substantially all of the WTW treaty reinsurance brokerage operations (&#147;Willis Re&#148;) for an initial gross
consideration of $3.25&nbsp;billion, and potential additional consideration of $750&nbsp;million subject to certain third-year revenue targets. As part of this acquisition, we entered into a multi-year transitional services agreement with WTW (the
&#147;TSA&#148;). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The improper <FONT STYLE="white-space:nowrap">gross-up</FONT> of some former Willis Re fiduciary receivables and payables was related
to amounts prepared by WTW (under the TSA and WTW revenue/billing system) and recorded by the Company in the monthly interfaces received from WTW. The Willis Re fiduciary-related receivables and payables amounts were prepared using WTW&#146;s
accounting policy related to billed receivables, which is different than the Company&#146;s accounting policy. Specifically, our policy is to net the commissions (i.e., premiums receivable that are to be remitted to insurance carriers are presented
net of any brokerage commission or fees) while WTW&#146;s presentation was on a gross basis (i.e., premiums receivable that are to be remitted to insurance carriers are presented gross and the commission is tracked separately). This accounting error
was discovered in Q1 2023 and corrected to apply our accounting policy as part of the fiduciary reclassification project. During this project we conducted an <FONT STYLE="white-space:nowrap">in-depth</FONT> analysis of how invoiced transactions were
booked within WTW&#146;s revenue/billing system and noted a difference from our accounting process. Thus, this was a deficiency in our controls related to the conforming accounting policy analysis that was performed as part of our integration in
2022 of the Willis Re acquisition. Our monthly financial controls process related to WTW journal entries was adjusted in Q1 2023 to properly address this matter going forward. This error impacted the consolidated balance sheets as of
December&nbsp;31, 2022 ($448.2&nbsp;million) and 2021 ($63.1&nbsp;million), resulting in an overstatement of both premium and fees receivable (fiduciary assets) and premiums payable to underwriting enterprises (fiduciary liabilities) by the same
amounts. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Unapplied and Unidentified Fiduciary Cash: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In addition, we reclassified the offset of unapplied and unidentified fiduciary cash from fiduciary assets to fiduciary liabilities, which resulted from a lack
of timely review of the unidentified and unapplied balance sheet offsets related to fiduciary cash that should have been reclassified to fiduciary assets, as further explained in &#147;Evaluation of Internal Control over Financial Reporting.&#148;
This error impacted the December&nbsp;31, 2022 ($101.2&nbsp;million) and 2021 ($45.8&nbsp;million) consolidated balance sheets, resulting in an understatement of both premium and fees receivable (fiduciary assets) and premiums payable to
underwriting enterprises (fiduciary liabilities) by the same amounts. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Regarding these errors: </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">They related to the consolidated balance sheet only and had no impact on the consolidated statements of earnings,
equity or cash flows, or on our net earnings or earnings per share. </P></TD></TR></TABLE>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 8
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">They were not material to our consolidated balance sheet. The impact on the consolidated balance sheet as of
December&nbsp;31, 2022 was 1.4% of total assets and 1.9% of total liabilities. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">They had no impact on trends in premium and fees receivable (fiduciary assets) or premiums payable to
underwriting enterprises (fiduciary liabilities). </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Premium and fees receivable (fiduciary assets) (3.0% impact on this line), premiums payable to underwriting
enterprises (fiduciary liabilities) (2.5% impact on this line) and other accrued liabilities (5.0% impact on this line) were not financial statement lines that are meaningful to our investors. </P></TD></TR></TABLE>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Analysis of Materiality under SAB 99 </B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As discussed above,
there were two balance sheet errors noted from the fiduciary asset and liability reclassification project. The first balance sheet error related to the incorrect application of our accounting policy in connection with the Willis Re acquisition in
December 2021, which resulted in a <FONT STYLE="white-space:nowrap">gross-up</FONT> misstatement of both the fiduciary assets and liabilities on the consolidated balance sheet as of December&nbsp;31, 2022 and 2021. The second balance sheet error
related to the untimely identification and application of fiduciary cash. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">To evaluate the materiality of these two errors in the December&nbsp;31, 2022
balance sheet, we considered the guidance in ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">250-10-45</FONT></FONT> and ASC <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">250-10-S99,</FONT></FONT> which
incorporates the guidance in SAB No.&nbsp;99 &#147;Materiality&#148; and SAB No.&nbsp;108 (SAB Topic 1.N: Quantifying Misstatements in Financial Statements). In accordance with the guidance, we considered both quantitative and qualitative factors in
our assessment of materiality as described below. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Quantitative Analysis: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We have analyzed the impact of these balance sheet errors from a quantitative perspective to determine materiality as follows: </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Company has identified four key metrics that are deemed to be meaningful to our investors and analysts, namely: revenue growth, operating margin, net
earnings and net earnings per share and their corresponding <FONT STYLE="white-space:nowrap">non-GAAP</FONT> metrics, which are organic revenue growth, adjusted EBITDAC margin, EBITDAC and adjusted diluted earnings per share (collectively, our
&#147;key metrics&#148;). Management believes that these key metrics are important when making meaningful <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">period-to-period</FONT></FONT> comparisons and are helpful to investors and
analysts when they assess and make determinations regarding our financial performance. Management also uses these key metrics to assess operating performance and performance for purposes of compensation. The balance sheet errors did not impact any
of our key metrics for any period presented in the 2023 Form <FONT STYLE="white-space:nowrap">10-K,</FONT> nor did they have an impact on any key metric for any preceding year. Additionally, there was no impact to the consolidated statements of
earnings, statements of comprehensive earnings or statements of stockholders&#146; equity for any period presented in the 2023 Form <FONT STYLE="white-space:nowrap">10-K.</FONT> </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Because of the impact to certain line items within the balance sheets and the statements of cash flows and consistent with ASC
<FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">205-10-50-1,</FONT></FONT></FONT> the Company provided a full quantitative reconciliation for the periods presented in Note&nbsp;5 to our consolidated
financial statements on pages 89 to 91 of the 2023 Form <FONT STYLE="white-space:nowrap">10-K</FONT> and in the interim Form <FONT STYLE="white-space:nowrap">10-Qs</FONT> filed in each quarter of 2023. </P>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 9
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I>Qualitative Analysis: </I></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We also analyzed the impact of the two errors from a qualitative perspective to determine materiality. The determination of whether an error is material is an
objective assessment focused on whether there is a substantial likelihood it is important to the reasonable investor. Management and our investors measure the operating performance of the Company based on our key metrics, which are consistently
reported on a quarterly basis. We believe that the impact of an error on these key metrics is what is most meaningful to investors. As such, since these balance sheet errors do not impact our key metrics, consolidated statements of earnings,
statements of comprehensive earnings or statements of stockholders&#146; equity, we concluded that the balance sheet errors would not be considered meaningful to our investors. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The qualitative factors that we considered included the following: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement arises from an item capable of precise measurement or whether it arises from an estimate and,
if so, the degree of imprecision inherent in the estimate</I>. These errors arose from an item capable of precise measurement, rather than an estimate. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement masks a change in earnings or other trends.</I> As these errors were balance sheet
misstatements, they have no effect on earnings or other trends. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement hides a failure to meet analysts&#146; consensus expectations for the enterprise.</I> Our
analysts estimate expectations for certain <FONT STYLE="white-space:nowrap">non-GAAP</FONT> metrics, including organic revenue growth, adjusted EBITDAC margin, EBITDAC and adjusted earnings per share. As the balance sheet errors had no effect on
earnings or any of the Company&#146;s key metrics for any period presented, these errors do not hide a failure to meet analysts&#146; expectations for those periods. </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement changes a loss into income or vice versa.</I> As noted above, these balance sheet errors had
no impact on earnings and therefore could not change a loss into income or vice versa. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement concerns a segment or other portion of the registrant&#146;s business that has been
identified as playing a significant role in the registrant&#146;s operations or profitability</I>. The misstatements had no impact on the Company&#146;s operations or profitability. </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement affects the registrant&#146;s compliance with regulatory requirements.</I> There are no known
impacts with any regulatory requirements related to this misstatement. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement affects the registrant&#146;s compliance with loan covenants or other contractual
requirements</I>. Compliance with loan covenants and other contractual requirements was not affected by these balance sheet errors. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement has the effect of increasing management&#146;s compensation.</I> Management compensation is
based on certain revenue and profitability metrics. As the misstatement had no impact on revenue or income, these balance sheet errors had no impact on management incentives. </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement involves concealment of an unlawful transaction.</I> These balance sheet errors do not
involve concealment of an unlawful transaction. </P></TD></TR></TABLE>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 10
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement demonstrates volatility in market trends or significant positive/negative reactions from the
investing public. </I>These balance sheet errors were not impacted by volatility in market trends, and we did not observe any negative reactions from the investing public following the disclosure of the change in presentation in our Form <FONT
STYLE="white-space:nowrap">10-Q</FONT> for the quarterly period ended March&nbsp;31, 2023. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement affects entity-specific trends and performance metrics that may influence investment
decisions</I>. As stated above, the Company has identified certain key metrics that are believed to be meaningful to our investors as they make <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">period-to-period</FONT></FONT>
comparisons and assess operating performance. These balance sheet errors had no impact on any key metric for the periods presented nor did they have an impact on any key metric for any preceding year. </P></TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement is a <FONT STYLE="white-space:nowrap">one-time</FONT> item and does not alter investors&#146;
perceptions of key trends affecting the entity.</I> As stated above, no key metrics or trends were impacted by these balance sheet errors and, therefore, management believes that these errors did not alter investors&#146; perceptions. However, for
comparability purposes, the correction made in the 2023 Form <FONT STYLE="white-space:nowrap">10-K</FONT> revised all periods presented. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement relates to items involving related parties or known users.</I> These balance sheet errors did
not involve related parties or known users. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement causes the disclosures to not be adequate or omit information not specifically required by
U.S. GAAP but is important to the understanding of the financial statements or conveys something in a false or misleading manner</I>. These balance sheet errors did not cause the financial disclosures on Forms
<FONT STYLE="white-space:nowrap">10-K</FONT> or Forms <FONT STYLE="white-space:nowrap">10-Q</FONT> to be inadequate, and we do not believe these errors caused the financial statements to be misleading regarding our operating results, liquidity, or
financial condition. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt"><I>The misstatement affects other information communicated in documents containing audited financial statements
that may reasonably be expected to influence economic decisions of the users of the financial statements (i.e. management discussion and analysis).</I> These balance sheet errors did not impact any key metrics and the reclassifications we made did
not appear to receive a negative or positive reaction from investors once disclosed, and they are not expected to influence investors&#146; economic decisions. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Based on the foregoing analysis, we concluded prior to issuance of the 2023 Form <FONT STYLE="white-space:nowrap">10-K</FONT> and Q1 2023 Form <FONT
STYLE="white-space:nowrap">10-Q</FONT> that the facts and circumstances relating to these balance sheet errors did not present a substantial likelihood of affecting the judgment of a reasonable investor and, therefore, were not material. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>Evaluation of Internal Control over Financial Reporting </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In evaluating the two errors described above, the Company also evaluated whether control deficiencies existed or exist in our internal controls over financial
reporting (&#147;ICFR&#148;). In doing so, we performed a comprehensive analysis surrounding the cause of the errors and evaluated whether any identified control deficiencies could represent a material weakness or significant deficiency. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In evaluating the existence of a material weakness, we reviewed indicators outlined in the Public Company Accounting Oversight Board&#146;s Auditing Standard
2201 &#150; An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">In evaluating the existence
of a control deficiency, we considered the design and operating effectiveness of our quarterly financial close procedures, specifically those controls over the preparation and review of our consolidated balance sheet. With respect to the
consolidated balance sheet, the Company conducts detailed reviews on a quarterly basis and account reconciliations on a monthly basis. We specifically considered the following in our assessment of the existence of a control deficiency. </P>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 11
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With respect to the error related to the Willis Re acquisition, this deficiency was unremediated as of
December&nbsp;31, 2022 and 2021. Once the deficiency was discovered we properly conformed the legacy WTW accounting policies and procedures that gave rise to the error to our own in the first quarter of 2023 and remediated this control deficiency.
Willis Re was a significant acquisition in December 2021, and unlike all of our other acquisitions, we had to utilize and rely on WTW to provide back-office support under the TSA from December 2021 through 2023. We identified a control gap in our
business combination process specifically related to the Willis Re acquisition as we failed to identify the differences in the net versus gross presentation of premium receivables between us and WTW/Willis Re, which resulted in a difference in
accounting of fiduciary receivables/payables. We have a key control in which management completes a business combination analysis for significant acquisitions and, as part of this process, management aligns all significant accounting policies to our
policies. Management was focused on such policies at the time of the acquisition but overlooked some less significant accounting policies. This was an operating issue with the application of the control, and has been remediated. We determined that
this issue did not rise above the level of a control deficiency given the following considerations: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">With the exception of Willis Re, we have not completed any other acquisitions where we rely on the selling
company to provide back-office support for the acquired business. Typically, our acquisitions are integrated into our existing processes within six months and, therefore, integrated into our existing accounting policies. Accordingly, this control
deficiency was isolated to the Willis Re acquisition. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">We quantified the total impact of this error and subjected all Willis Re balances, regardless of materiality, to
a review as part of this fiduciary asset and liability reclassification project. Therefore, the maximum impact was quantified. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">Given that this error was due to a difference in balance sheet accounting policies between us and WTW, this was
solely a gross versus net misstatement and did not have any impact on our statement of earnings. </P></TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left" STYLE=" margin-top:0pt ; margin-bottom:0pt; font-family:Times New Roman; font-size:10pt">While the balance sheet and statement of cash flows are important to investors, the error did not impact the
users of the financial statements who are focused on statement of earnings metrics such as revenue growth, EBITDAC and our other key metrics. </P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">With respect to the unidentified and unapplied cash error, we have accounts for recording the offsets to the unidentified and unapplied cash that was received
but normally the accounts are cleared timely so that the balances of unidentified and unapplied cash are not material and the balance of the accounts are not significant. The beginning and end of period cash, cash equivalents, restricted cash and
fiduciary cash amounts were not impacted by this error. This error was due to the lack of timely review of the unidentified and unapplied balance of fiduciary cash that should have been reclassified to fiduciary assets. Although it is treated as an
error, the balance would never be significant enough before it would be identified, primarily due to compensating controls over account reconciliations and the process around application of cash received within the receivables process. This was
determined to be a control deficiency for lack of timely review that was remediated by updating our cash application policy and correcting the error in the first quarter of 2023. </P>
</DIV></Center>


<p style="margin-top:1em; margin-bottom:0em; page-break-before:always"> </p>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


<Center><DIV STYLE="width:8.5in" align="left">


<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" ALIGN="center">

<TR>

<TD WIDTH="35%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>

<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="31%"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Arthur J. Gallagher &amp; Co.</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top" ALIGN="right"> Page
 12
</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">File No. 001-09761</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"></TD></TR></TABLE> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We concluded that there were no systemic companywide issues related to the identification of these errors and
that our processes did not fail to prevent a material misstatement. As discussed above, management concluded that the impact of these errors on certain line items in the consolidated balance sheet was not qualitatively meaningful to our investors
due to the lack of impact on any key metrics and the other qualitative factors analyzed above. As such, management believes that the revisions made did not represent a material weakness in our internal controls over financial reporting. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We further did not identify a significant deficiency based on our review of underlying controls, discussed in detail above. However, as part of our quarterly
governance disclosure process, the Audit Committee was informed of management&#146;s findings and our conclusions prior to the issuance of our earnings release and the filing of our Form <FONT STYLE="white-space:nowrap">8-K</FONT> for the first
quarter of 2023 on April&nbsp;27, 2023, which included a disclosure of the change in presentation of fiduciary assets and liabilities in the first quarter of 2023. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&#8195;*&#8195;* </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We acknowledge that Arthur J.
Gallagher&nbsp;&amp; Co. and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the Staff. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Please contact me at <U>doug_howell@ajg.com</U> or <FONT STYLE="white-space:nowrap"><FONT STYLE="white-space:nowrap">630-285-3500</FONT></FONT> if you have
any further questions or would like to discuss our response. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt">


<TR>

<TD WIDTH="100%"></TD></TR>


<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sincerely,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">/s/ Douglas K. Howell</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Douglas K. Howell</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Chief Financial Officer</TD></TR>
</TABLE></DIV> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR style = "page-break-inside:avoid">
<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Walter D. Bay, Vice President&nbsp;&amp; General Counsel </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Richard C. Cary, Chief Accounting Officer </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Ronald Genty, Ernst&nbsp;&amp; Young LLP </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:4%; font-size:10pt; font-family:Times New Roman">Andrew L. Fabens, Gibson, Dunn&nbsp;&amp; Crutcher LLP </P>
</DIV></Center>

</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>g816829dsp01.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g816829dsp01.jpg
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M 0$! 0$! 0        $" P0%!@<("0H+$  " 0,# @0#!04$!    7T! @,
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M P$  A$#$0 _ /?Z $9E12S$*HZD\8H Y#7?BAX0\/,T=YJ\3S+UC@^=OTH
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F%$WO_??DUA*I*1K&G&)H5F:!0 4 % !0 4 % !0 4 % !0!__]D!

end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
