The Consolidation Conundrum Arthur J. Gallagher & Co. 's (AJG) recent purchase of McMillan Insurance & Bonding Inc. in Colorado is part of a larger trend shaping the insurance industry.
Despite impressive revenue growth – 24% and 6% organic growth, respectively – the true story lies in AJG's bottom line.
Amortization of acquired intangibles weighs heavily on profits, with $218 million in costs, up from $130 million last year.