Summary
This 8-K filing from Arthur J. Gallagher & Co. (AJG), dated March 16, 2011, serves to re-emphasize important information previously presented in a February 15, 2011 filing. The company is directing investors and analysts to specific slides (Exhibit 99.2) from a presentation given at the Bank of America Merrill Lynch Insurance Conference. These slides contain adjusted financial information for the Brokerage Segment for 2008, 2009, and 2010 on a quarter-to-quarter comparative basis. The core purpose of this filing is to ensure that analysts accurately incorporate historical compensation and operating expense ratios into their future earnings estimates for the Brokerage Segment. The company highlights that while many analysts may have adjusted their models for other non-GAAP items, they may not have recalculated these specific expense ratios, potentially leading to misinformed future projections. AJG strongly encourages the use of this provided adjusted data for more precise forecasting.
Key Highlights
- 1AJG is re-directing investors and analysts to specific presentation slides (Exhibit 99.2 from a Feb 15, 2011 filing) containing adjusted financial information.
- 2The focus is on the Brokerage Segment, with adjusted data provided for 2008, 2009, and 2010 on a quarterly comparative basis.
- 3The filing emphasizes the importance of using adjusted compensation expense ratios and operating expense ratios from the presentation.
- 4The company believes many analysts have not adequately recalculated these specific expense ratios after making other model adjustments.
- 5Accurate calculation of these ratios is crucial for robust future quarterly and annual earnings estimates for the Brokerage Segment.
- 6AJG explicitly states they do not plan to present similar information in the future, underscoring the significance of this disclosure.
- 7The filing is intended to prevent potential inaccuracies in future earnings estimates due to a misapplication of historical data.