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Gallagher expects lower brokerage acquisition multiples as AI boosts margins
On its Q2 2026 call, the insurer said AI could drive about 600 basis points of margin potential, with roughly 400 basis points retained over three to five years.
Gallagher said it expects brokerage acquisition multiples to come down, citing conditions in the insurance brokerage market and the role that specialized risk and data capabilities can play in the deal landscape, according to Coverager.
On its Q2 2026 earnings call on July 30, Gallagher estimated that AI could eventually deliver potential margin improvement of 600 basis points, while management believes it may retain about 400 basis points over the next three to five years after offsets and reinvestment.
Gallagher said it has around 1,000 technology and automation projects underway, with dozens already producing tangible results. Management added that the savings should emerge gradually over time rather than through a large, formal restructuring program.
The company also pointed to early AI use cases, including claim fraud detection and earlier routing of potentially problematic claims to experienced professionals. Coverager notes Gallagher reported 6% organic growth across its Brokerage and Risk Management businesses, and characterized current conditions as a property pricing reset rather than a broad soft market across every insurance line at once.