#USA #Kansas City #Insurance Brokerage #Lockton #Client-Centric Growth

Lockton Achieves $4 Billion Revenue in FY2025

Lockton, Inc., known as the world’s largest independent and privately held insurance brokerage, has reached a significant milestone by reporting a global revenue of $4.0 billion for the fiscal year ending April 30, 2025. This achievement marks an impressive five-year compound annual growth rate (CAGR) exceeding 16%. The company has managed to accomplish nearly 100% organic growth, contributing to its noteworthy performance.

Key Highlights of Fiscal Year 2025

• - Impressive Global Revenue Growth: Lockton’s revenue surged by 13%, driven by organic growth that continues to defy industry trends. This marks Lockton’s fifth consecutive year of double-digit organic growth.
• - International Operations: The company’s international branches have surpassed the $1 billion mark, growing at a remarkable 15% in constant currency. Lockton has experienced a consistent four-year streak of double-digit growth in this sector.
• - U.S. Operations: U.S. revenue reached $2.7 billion, reflecting an 11% increase and continuing a streak of seven years of double-digit organic growth.
• - Lockton Re Expansion: Lockton Re, the company’s reinsurance division, experienced a substantial 29% growth year-over-year, contributing to Lockton’s global presence.
• - Transaction Liability Success: The Transaction Liability practice achieved outstanding growth, completing an unprecedented number of transactions and increasing by 59% year-over-year.

A Commitment to Client-Centric Growth

Ron Lockton, the Chairman and CEO, emphasized the company's growth-oriented approach: "Lockton is, first and foremost, a growth company. Our continuous double-digit organic growth distinguishes us from our competition." He noted that as industry consolidation firms up, Lockton's independence and unwavering commitment to clients allow it to retain talent at an exceptional level.

Leadership and Strategic Appointments

The year 2024 saw Ron Lockton returning to the role of Chairman and CEO, leading to a series of critical executive appointments intended to strengthen the company's global leadership presence. Key appointments included Chris Brown as CEO of Lockton International and Travis Leonard as CFO, among others. This leadership team is focused on aligning Lockton's specialty practices and products globally to ensure cohesion and enhance client service.

Remarkable International Growth

Lockton International, under Chris Brown’s leadership, has achieved a remarkable 15% growth rate in constant currency, nearly doubling the growth rates of its global competitors. The company has broadened its geographical footprint significantly, including substantial investments in India and expansions in the Nordics. New CEOs have been appointed in Asia, Australia, and the Middle East/North Africa to drive this growth further.

Performance in the U.S.

In the U.S., Lockton's business added a noteworthy $265 million in revenue, continuing its streak of double-digit organic revenue growth. Organizational changes were also made, including Tim Ryan being named U.S. President to foster a unified approach to delivering value across the country.

Lockton Re Expansion

Celebrating its fifth anniversary, Lockton Re has achieved tremendous growth with a robust global team operating across 22 locations. These strategic expansions include a footprint in major cities like Dublin and Santiago, and the division is well-positioned for continued high growth driven by a strong client-focused model.

Innovation through Data and Technology

To advance its service capabilities, Lockton has established a new Data, Analytics, and Digital Office led by technology expert Claude Yoder. This office aims to integrate innovative technology with analytics to provide clients with actionable insights, helping them manage risk effectively and make informed decisions.

A Focus on Culture and Talent

Lockton's impressive growth is attributed to its people-first approach, which has gained the company numerous accolades, including recognition as one of the "Best Managed Companies" in the U.S. for five consecutive years and certifications as a great workplace in multiple countries including Australia and New Zealand. Ron Lockton noted, "Our high client satisfaction scores demonstrate that we are on the right path, fostering a culture that attracts and retains talented individuals."

Conclusion

Lockton’s continued success is clear as it navigates the complexities of the insurance brokerage market. With a strong foundation of organic growth, a focus on client needs, strategic leadership appointments, and a commitment to innovation, Lockton stands poised to leverage its unique business model for further achievements in the years to come.