This is Zack Fuss. Today we're breaking down Arthur J. Gallagher, a global insurance brokerage. AJG was established in 1927 by Arthur James Gallagher and is one of the largest insurance brokerages by revenue. Exceeding $10 billion, AJG competes with the likes of Marsh McLennan, Aon, and Willis Towers Watson.  To break down Gallagher, I am joined by Mike Hayward, a portfolio manager at WCM Asset Management.  During this conversation, we discussed the company's successful acquisition and duration strategy, the strength of the insurance brokerage industry, and how the shifting industry dynamics will impact the durability of its competitive advantage. Please enjoy this breakdown of A.J. Gallagher. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is brought to you by 10 East. 10 East is a platform where qualified investors can co-invest on a deal-by-deal basis across private equity, private credit, real estate ventures, and other one-off opportunities typically unavailable through traditional channels. It's no surprise that founders, executives, and portfolio managers from leading investment firms are using 10 East to diversify their personal portfolios. Their level of sourcing and diligence is institutional grade. To learn more, check out 10east.com. CSIMA, Columbia Student Investment Management Association, is hosting its 27th annual conference in New York on Friday, February 9th. Keynote speakers include John Griffin from Blue Ridge, Ian McKinnon from Sandia, Jan Hummel from Paradigm, and Sally Krawcheck from Ellevest. Get your tickets at csima.info/conference. ----- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @JoinColossus | @patrick_oshag | @zbfuss | @ReustleMatt | @domcooke Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes: [00:00:00] First question - What AJG is and what they do  [00:01:28] Value chain and key components of the insurance industry  [00:04:03] Gallagher’s business segments and specialty  [00:06:58] Their defensibility and competitive edge [00:11:22] Stickiness and noteworthy retention rates [00:15:06] Why the market undervalues their stickiness  [00:17:19] Their acquisition strategy and its role in ongoing consistent growth   [00:23:20] What ‘The Gallagher Way’ really means and company history  [00:27:52] Overview of the financial model and structure [00:32:09] Potential risks to Gallagher’s continued success  [00:37:21] Industry regulation and how they can affect the business  [00:40:46] Lessons for investors and operators