Arthur J Gallagher 10k Report

The Arthur J Gallagher 10k 145 page report for the fiscal year ending December 31, 2018 provides interesting insight into insurance brokerage services.

Below is an excerpt of one of many interesting discussion points being debated within the insurance brokerage community these days:

Changes in legislation or regulations and actions by regulators, including changes in administration and enforcement policies, could from time to time require operational changes that could result in lost revenues or higher costs or hinder our ability to operate our business.

For example, the method by which insurance brokers are compensated has received substantial scrutiny in the past because of the potential for conflicts of interest.

The potential for conflicts of interest arises when a broker is compensated by two parties in connection with the same or similar transactions.

The vast majority of the compensation we receive for our work as insurance brokers is in the form of retail commissions and fees. We receive additional revenue from underwriting enterprises, separate from retail commissions and fees, including, among other things, contingent and supplemental revenues and payments for consulting and analytics services we provide them.

Future changes in the regulatory environment may impact our ability to collect these amounts.

Adverse regulatory, legal or other developments regarding these revenues could have a material adverse effect on our business, results of operations or financial condition, expose us to negative publicity and reputational damage and harm our relationships with clients, underwriting enterprises or other business partners.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K

☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2018

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to

Commission file number 1-09761

ARTHUR J. GALLAGHER & CO.

(Exact name of registrant as specified in its charter)

DELAWARE 36-2151613 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number)

2850 Golf Road Rolling Meadows, Illinois 60008-4050 (Address of principal executive offices) (Zip Code)

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