Financial Results
Arthur J. Gallagher & Co. Announces Fourth Quarter and Full Year 2025 Financial Results
Arthur J. Gallagher & Co. (NYSE: AJG) today reported its financial results for the quarter ended December 31, 2025. Management will host a webcast conference call to discuss these results on Thursday, January 29, 2026 at 5:15 p.m. ET/4:15 p.m. CT.
"We had an excellent fourth quarter and a terrific 2025!" said J. Patrick Gallagher, Jr., Chairman and CEO.
"Our two-pronged revenue growth strategy, that's organic and M&A, drove double-digit top line growth for the 20th straight quarter. Fourth quarter revenue growth for our combined Brokerage and Risk Management segments was in excess of 30% and included organic revenue growth of 5%. Net earnings margin was 10.2%, adjusted EBITDAC margin was 30.8% and adjusted EBITDAC grew 30%.
"We finished 2025 with 21% growth in revenue, 6% organic growth, 26% growth in adjusted EBITDAC and completed 33 mergers with more than $3.5 billion in estimated annualized revenue. Another fantastic year.
"We have excellent momentum entering 2026 and our talented colleagues are executing on our value creation strategy. We are extremely excited about 2026 and believe we are just getting started!"
Claims
The Global Standard for OEM Estimating: Why 60% of the World’s Insurers Run on Solera -
[Ed. Note: interesting history and industry pedigree of Audatex/Solera]
Founded in Minden, Germany, in 1966, Audatex revolutionized the automotive industry as the first automated vehicle repair system, later becoming a cornerstone of Solera Holdings in 2006. It expanded globally to provide, AI-driven, data-intelligent claims, underwriting, and repair solutions for insurers and repairers.
Key milestones in Audatex's history include:
- 1966: Founded in Germany, introducing digital processing of insurance claims.
- 1980s: Established operations in North America (1980) and Canada (1983).
- 1987: Launched in the UK, transforming the collision repair sector.
- 1997: Introduced the first bi-directional communication interface in Canada.
- 1998: ADP completed its acquisition of Audatex Holding AG from Swiss Re, expanding its Claims Services Group (CSG) to offer global automotive, physical-damage estimating service
- 2006: Solera acquired ADP Claims Solutions Group for $1B, which included Audatex, solidifying its global, technology-driven, insurance-focused footprint.
- 2013: Audatex U.S. combined with Explore Information Services to form AudaExplore, enhancing data-driven claims solutions..
- 2015/2016: Solera was a public company from its initial public offering (IPO) in May 2007 until it was taken private in March 2016 and was acquired by Vista Equity Partners in a $6.5 B transaction.
Present: Continues to drive innovation with AI-based solutions like Qapter for claims management, processing millions of claims worldwide. Today, as part of Solera, Audatex is a global leader in vehicle lifecycle management, serving over 90 countries with data-driven, automated solutions.
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SOLERA PRESS RELEASE
For over a decade, Solera has been building, training, and refining AI-powered estimating solutions on the largest automotive claims and repair dataset in the world.
Today, we serve 60%+ of the world’s insurers, operate in 120+ countries, and power OEM repair programs with unmatched consistency, speed, and intelligence.
OEMs face a hard truth: fragmented regional estimating solutions can’t keep pace with global customer expectations. Brand trust is built or broken at the point of repair. Delivering a consistent, high-quality experience worldwide requires more than localized tools. It requires a single global estimating standard, proven at scale.
That’s where Solera leads the market.
Solera is the only truly global estimatics provider, connecting OEMs, insurers, and repair networks through a unified platform powered by Qapter®. With decades of repair intelligence, hundreds of millions of historical claims, and billions of images fueling our AI, Solera delivers a well-oiled estimating engine that improves accuracy, accelerates program launches, and enables data-driven decisions across every market.
“OEMs are looking for partners who can deliver innovation without borders. Solera is proud to be the only estimatics provider with the scale and technology to serve OEMs globally,” says Bill Brower, Solera’s Senior Vice President of Global Industry Relations and Claims Solutions. “Our solutions empower manufacturers to deliver a consistent, high-quality experience for their customers no matter where they are in the world.”
InsurTech/M&A/Finance💰/Collaboration
AI underwriting InsurTech Sixfold raises $30m Series B round
Sixfold, an AI underwriting InsurTech company focused on modernising insurance decision-making, has secured fresh capital as it looks to deepen its footprint with insurers around the world.
The New York-based firm has raised $30m in a Series B funding round led by Brewer Lane, with strategic backing from Guidewire.
Existing investors Bessemer Venture Partners and Salesforce Ventures also participated in the round, reaffirming their support for the company’s growth strategy.
Founded to address inefficiencies in insurance underwriting, Sixfold develops artificial intelligence designed to support property and casualty insurers. Its technology automates and augments underwriting workflows, helping insurers assess risk more quickly and consistently. By applying AI across large volumes of structured and unstructured data, the platform aims to improve decision quality while reducing manual effort for underwriting teams.
The newly raised capital will be used to develop what the company describes as its ‘AI Underwriter’, an autonomous system capable of handling end-to-end underwriting tasks. Sixfold plans to expand its research and engineering teams to accelerate product development, while also scaling its commercial operations to meet rising demand across North America, Europe, Latin America and Australia.
InsurTech firm Fulcrum raises $25m to scale broker automation
Fulcrum, a US-based InsurTech company focused on automating back-office processes for insurance brokers, has raised $25m as it looks to expand the reach of its software among some of the largest brokerage houses in the country.
The company secured the funds across its seed and Series A funding rounds, according to Life Insurance International.
The financing was led by venture capital firm CRV, with backing from South Park Commons, Foundation Capital and a number of angel investors.
Founded to modernise operational workflows in the insurance sector, Fulcrum develops automation tools designed to reduce the manual burden placed on brokerage teams. Its platform enables brokers to streamline tasks such as analysing coverage and claims, generating proposals, checking policies, preparing sales materials for clients and carriers, and issuing certificates.
The new capital will be used to advance its platform and accelerate adoption among large brokerage firms. The company is focused on deepening its integrations with existing agency-management systems, allowing brokers to deploy automation without overhauling their current technology stacks.
Insurance platform Ethos Technologies valued at $1.2 billion in Nasdaq debut | Reuters
Ethos Technologies (LIFE.O), opens new tab clinched a valuation of $1.2 billion in its Nasdaq debut on Thursday, as insurance firms continue to find receptive investors in a strengthening IPO market*.
The U.S. IPO market has staged a broad recovery in recent months, with companies across the technology, healthcare and financial sectors rushing to list as strong investor risk appetite, record-high equity markets and pent-up demand revive deal activity.
Meanwhile, investor interest in the broader life insurance sector has also grown, supported by steady recurring revenue, durable consumer demand and pricing power that tends to hold up even in economic slowdowns.
Ethos, which is backed by venture capital firms Accel and Sequoia, has said its platform and underwriting engine streamline the buying, selling and risk management of life insurance.
The firm said in its IPO prospectus that it has activated more than 500,000 policies since its inception.
"We deliver a 10 minute purchase process online, instead of the multi-week journey, we allow agents to sell many more policies than they otherwise would," Ethos CEO Peter Colis told Reuters in an interview, adding that for carriers, it transforms the risk management process.
Indigo Raises $50 Million to Modernize Medical Malpractice Insurance Nationwide
Indigo, a vertically integrated, AI-driven medical professional liability platform, today announced the closing of a $50 million oversubscribed Series B financing, led by existing investor Rubicon Founders, with significant participation from new investor Town Hall Ventures, and other existing strategic investors including Optum Ventures.
The new capital will support continued expansion of Indigo’s AI-powered underwriting and distribution platform, enabling faster, more precise coverage decisions for physicians and brokers nationwide.
Founded in 2023, Indigo provides medical professional liability insurance to physicians across a broad range of specialties. The company has rapidly grown to insure nearly 1,000 providers nationwide and has surpassed $10 million in premium. Indigo’s proprietary AI platform, Lux, applies advanced machine learning and purpose-built risk models to automate underwriting workflows traditionally handled through manual, labor-intensive processes.
This technology-led approach has significantly increased underwriting throughput while maintaining disciplined risk selection and strong broker satisfaction. By the end of 2025—less than two years after launch—20% of submissions were fully underwritten automatically, underscoring the scalability of Indigo’s platform and the impact of domain-specific automation on legacy insurance models.
“The next phase of innovation in insurance requires technology purpose-built for complex, specialty risk,” said Jared Kaplan, CEO of Indigo. “This funding allows us to expand our technology footprint, deepen underwriting rigor, and deliver an exceptional ease-of-doing-business experience for brokers—while ensuring physicians receive pricing and coverage aligned with their true risk profile. Our results demonstrate that advanced automation can drive profitable growth while reducing operational friction.”
Announcements
LexisNexis Risk Solutions Launches LexisNexis IDVerse for Insurance to Help U.S. Insurance Companies Combat AI-Driven Threats and Better Protect Their Customers
LexisNexis® Risk Solutions today announced the availability of LexisNexis® IDVerse® for Insurance, an AI-powered, cutting-edge document authentication and identity verification solution that helps defend against AI-driven fraud for U.S. personal lines insurers and their customers throughout the insurance lifecycle.
IDVerse for Insurance leverages biometric verification, proprietary AI models, and a deep neural network to securely authenticate and verify ID documents and digital identities within seconds at multiple points in the insurance workflow, including quoting, claims, high-risk transactions, customer service, and account management. The solution helps insurance companies reduce fraud risk, improve efficiency and safeguard profitability by enabling real-time identity verification automation, seamlessly integrated into the insurance workflow. For consumers, it can help provide a faster, low friction and streamlined interaction with insurers.
According to the U.S. Department of Homeland Security1, losses from generative AI-enabled fraud are expected to reach $40 billion by 2027.
"U.S. insurers are under increasing pressure to deliver seamless digital experiences without compromising on security, while bad actors and criminal networks are using advanced technology to adapt and continue their attacks on the industry," said Jennifer Kostyrna, senior director of product management, insurance identity solutions, LexisNexis Risk Solutions. "The only way to keep up with these fraudsters is to match their sophistication with smarter, more adaptive technology. IDVerse does this by using the same powerful technology to stop fraud in its tracks, giving insurers the confidence to embrace security and bolster their customer experience."
Telematics, Driving & Insurance
Federal Bill Proposes the Use of AI, Telematics to Improve Road Safety | WaterStreet Company
New legislation, which proposes to address safety and increase efficiency on roads and highways, was introduced by U.S. Senators John Boozman (R-AR) and Alex Padilla (D-CA) last week.
The bill would help state departments of transportation adopt the use of technologies such as artificial intelligence and telematics to identify faulty or inadequate infrastructure that negatively impacts driver behavior and leads to fatalities.
“Far too often, transportation professionals realize the need to address a safety issue only after tragedy strikes,” said Boozman. “This bipartisan bill helps states move from a ‘crash first, fix later’ approach to a proactive, data-driven strategy that identifies risks before serious incidents occur. By clarifying the use of federal safety funds for proven predictive technologies, we can empower states to prevent accidents, make smart investments, and save lives.”
The Roadway Safety Modernization Act aims to modernize federal-aid highway safety programs by incorporating new tools and systems, including predictive analysis platforms and other proven methods to address safety risks proactively.
If passed, the legislation would promote increased accountability and transparency through measurable performance and intervention, while utilizing anonymous data to identify and inform infrastructure safety decisions, while protecting consumer privacy.
2026 Outlook/Predictions
EY 2026 Global Insurance Outlook | EY
- Faced with persistent uncertainty and volatility, insurers are exploring a broader range of growth opportunities.While cost efficiency is critical in softening markets, insurers should look to invest savings in transformation plans and growth strategies.
- Private capital and non-traditional competitors are reshaping how products are structured, risks are transferred, and capital is deployed.
- Senior leaders are rethinking enterprise AI strategies to scale initial pilots, generate more value, and prepare for future transformation.
- Periods of uncertainty are ideal times for insurers to embrace bold strategies for growth and innovation. Why? Because individuals, families, businesses and communities around the world will be looking for powerful solutions that prevent and offer protection against proliferating risks.
A number of megatrends are driving non-linear, accelerated, volatile and interconnected (NAVI) change that is reshaping how people live and work and how the global economy operates. Today’s insurance sector offers more than its share of turbulence. Macroeconomic and geopolitical uncertainty, intensifying competition, new capital flows, disruptive technology and regulatory fragmentation – not to mention changing customer needs – are rewiring the industry in unpredictable ways. - EY 2026 Global Insurance Outlook
2026 P&C Outlook: Navigating Volatility, Unlocking Growth
A dynamic and interconnected property & casualty risk landscape persists in 2026, with ample capacity and opportunities for buyers. Nevertheless, rising structural volatility means the window to build long-term resilience is time sensitive in advance of any market turn - AON
Key Takeaways - Increasing volatility is reshaping how P&C risk decisions are made, demanding a more integrated and forward‑looking approach from risk leaders and financial executives. - Dynamic market conditions still offer meaningful opportunities for organizations to optimize programs, strengthen protection and rethink risk appetite through better insight. - Data, analytics and a more connected risk operating model are essential to understanding exposure, assessing alternatives and building long‑term resilience. FULL REPORT
OEM-Led Insurance Ecosystems: Digital Data Models - WTW
Executive brief on OEM-led auto insurance, exploring digital, dealer, and data-driven models and opportunities for 2026–2028 - WTW.
Will insurance and protection products become a seamless part of the digital vehicle-buying journey — or continue to sit adjacent to it? As vehicle manufacturers increase direct digital engagement, a central strategic question emerges: how to keep dealers meaningfully involved in ways that reinforce customer experience and long-term service value.
Across global markets, many OEMs — often guided by their financial services entities — are exploring more integrated protection ecosystems. The intent is consistent: offer customers a unified experience across sales, ownership and servicing; improve attachment rates; and strengthen long-term brand engagement and aftersales loyalty. Insurers remain essential partners, but increasingly within OEM-designed, collaborative models.
This brief highlights six areas shaping the transition:
- The structural shifts in OEM–dealer–insurer collaboration
- Key operational and regulatory considerations that influence what can be offered and where
- How shared data, used responsibly, can support personalisation and operational efficiency
- The evolution of commercial approaches
- What differentiates ecosystem leaders
- Opportunities expected between 2026 and 2028 as digital ownership models mature