Why did AJG's operating expenses decrease sharply in Q4 2024?

Arthur J. Gallagher & Co. (AJG) did not report a decrease in operating expenses in Q4 2024. In fact, the company's financial reports indicate an increase in total expenses, including operating expenses, for that quarter. Here are the details:

1. **Q4 2024 Financial Overview**: AJG reported a 13% year-over-year increase in total adjusted revenues, amounting to $2.7 billion, which missed the Zacks Consensus Estimate by 0.1%. The company's total expenses also rose by 13% year over year, reaching $2.4 billion.
2. **Segmental Analysis**: Within the Brokerage segment, revenues increased by 13% to $2.3 billion, attributable to higher commissions, fees, and other income sources. Correspondingly, expenses jumped by 13% to $1.9 billion due to higher compensation, operating expenses, and amortization and depreciation costs.
3. **Risk Management Segment**: The Risk Management segment saw a 11% revenue increase to $410 million, primarily driven by higher fees, interest income, and other income. Expenses in this segment rose by 11.6% to $349.3 million, attributed to increased compensation, operating, and reimbursement costs, as well as depreciation and amortization.

In conclusion, AJG did not experience a decrease in operating expenses in Q4 2024. Instead, the company's financial reports indicate a notable rise in total expenses, reflecting the increased costs associated with business operations and growth initiatives.