* For all that growth, only 4% was organic – for operations in existence last year and not including acquisitions.
* They paid a total of $100 mil for litigation and investigation charges related to contingency “issues”.
* Contingency income for 1Q 2005 included $20 MILLION of cash – not going to be there next year and makes you wonder how much each contingency check will ‘cost’ them.
* A loss in 1Q 2005 of $74 Mil vs. a profit in 1Q 2004 of $39 Mil.
Great company. For who? Stockholders? Employees? Managers? Or Spitzer?
Certainly not clients. When will the axes fall, lopping off account handlers while trying to convince clients that their servicing standards will be maintained?
NU Online News Service, April 27, 4:09 p.m. EDTâ€â€ÂThe head of Arthur J. Gallagher & Co. said while the insurance broker has reserved $35 million for settlement and litigation costs related to improper contingent fee activity, the firm has no idea when a settlement will be reached.
…
J. Patrick Gallagher Jr., president and chief executive officer of Gallagher, said the firm is subject to 22 state inquiries from either state attorneys general or departments of insurance, 12 class actions suits, and one shareholder suit.
We’ve heard rumors that proposed settlement with the matter involving the financial services division is somewhere in the neighborhood of $50,000,000……ouch
Pat Gallagher continues to be a truly effective leader of a great company! It is good to see positive results from this Organization.
Great Company, HAH. Look at the numbers:
* For all that growth, only 4% was organic – for operations in existence last year and not including acquisitions.
* They paid a total of $100 mil for litigation and investigation charges related to contingency “issues”.
* Contingency income for 1Q 2005 included $20 MILLION of cash – not going to be there next year and makes you wonder how much each contingency check will ‘cost’ them.
* A loss in 1Q 2005 of $74 Mil vs. a profit in 1Q 2004 of $39 Mil.
Great company. For who? Stockholders? Employees? Managers? Or Spitzer?
Certainly not clients. When will the axes fall, lopping off account handlers while trying to convince clients that their servicing standards will be maintained?
This is definitely not a great company for an employee of AJG or any of its’ subsidiaries. The pension plan axe is just the start.
NU Online News Service, April 27, 4:09 p.m. EDTâ€â€ÂThe head of Arthur J. Gallagher & Co. said while the insurance broker has reserved $35 million for settlement and litigation costs related to improper contingent fee activity, the firm has no idea when a settlement will be reached.
…
J. Patrick Gallagher Jr., president and chief executive officer of Gallagher, said the firm is subject to 22 state inquiries from either state attorneys general or departments of insurance, 12 class actions suits, and one shareholder suit.
We’ve heard rumors that proposed settlement with the matter involving the financial services division is somewhere in the neighborhood of $50,000,000……ouch