Arthur J. Gallagher (AJG) risk factors, FY2025 10-K

Risks Relating to our Business Generally

1. 01Global economic conditions and geopolitical events may impact the countries, regions or industries in which we operate and adversely affect our business results of operations and financial condition
2. 02Economic conditions that result in financial difficulties for underwriting enterprises or lead to reduced risk-taking capital capacity could adversely affect our results of operations and financial condition
3. 03We have historically acquired large numbers of insurance brokers, benefit consulting firms and, to a lesser extent, third party claims administration and risk management firms
4. 04Damage to our reputation or culture could have a material adverse effect on our business
5. 05Our sustainability-related aspirations, goals and initiatives, and our statements and disclosures regarding sustainability expose us to numerous risks
6. 06We are subject to risks associated with AI
7. 07Our success depends, in part, on our ability to attract and retain qualified talent, including our senior management team
8. 08Business disruptions could have a material adverse effect on our operations, damage our reputation and impact client relationships
9. 09Our business or reputation could be harmed by our reliance on third-party providers
10. 10Sustained increases in compensation expense and the cost of employee benefits could reduce our profitability
11. 11Our substantial operations outside the U.S. expose us to risks different than those we face in the U.S
12. 12Changes in tax laws could adversely affect us
13. 13We face significant competitive pressures in each of our businesses
14. 14Volatility or declines in premiums or other adverse trends in the insurance industry may seriously undermine our profitability
15. 15Contingent and supplemental revenues we receive from underwriting enterprises are less predictable than standard commission revenues, and any decrease in the amount of these forms of revenue could adversely affect our results of operations
16. 16We face a variety of risks in our benefit consulting operations distinct from those we face in our insurance brokerage operations
17. 17We face a variety of risks in our third-party claims administration operations that are distinct from those we face in our brokerage and benefit consulting operations

Regulatory, Legal and Accounting Risks

1. 18In addition, the competition for talent is high in the cybersecurity and privacy space, and we may not be able to hire, develop or retain suitable talent that we need to be capable of minimizing, identifying, mitigating or remediating these risks
2. 19Changes in data privacy and protection laws and regulations, or any failure to comply with such laws and regulations, could adversely affect our business and financial results
3. 20We are subject to a number of contingencies and legal proceedings which, if determined unfavorably to us, would adversely affect our financial results
4. 21We could be adversely affected by violations or alleged violations of laws that impose requirements for the conduct of our overseas operations, including the FCPA, the U.K. Bribery Act or other anti-corruption laws, sanctions laws and FATCA
5. 22Violations by us or our third party representatives could result in significant internal investigation costs and legal fees, civil and criminal penalties, including prohibitions on the conduct of our business, and reputational harm
6. 23We are subject to regulation worldwide. If we fail to comply with regulatory requirements or if regulations change in a way that adversely affects our operations, we may not be able to conduct our business, or we may be less profitable
7. 24Changes in our accounting estimates and assumptions could negatively affect our financial position and operating results
8. 25Limited protection of our intellectual property could harm our business and our ability to compete effectively, and we face the risk that our services or products may infringe upon the intellectual property rights of others

Risks Relating to our Investments, Debt and Common Stock

1. 26Our clean energy investments are subject to various risks and uncertainties
2. 27The IRC Section 45 operations in which we have invested and the by-products from such operations may result in environmental and product liability claims and environmental compliance costs
3. 28We have debt outstanding that could adversely affect our financial flexibility and subjects us to restrictions and limitations that could significantly impact our ability to operate our business
4. 29Credit rating downgrades would increase our financing costs and could subject us to operational risk
5. 30We are a holding company and, therefore, may not be able to receive dividends or other distributions in needed amounts from our subsidiaries
6. 31Future sales or other dilution of our equity could adversely affect the market price of our common stock