Patrick Gallagher: 92, that’s what I thought. I heard 19, I apologize. So each of those are growing faster than the general book. So value — again, you’ve got to look at rate, you’ve got to look at exposure and all that other stuff. But when you talk about share, there is absolutely no doubt you go back to Doug’s comment. An acquisition can be 1 plus 1 equals 5 because when Gallagher shows up with the relationships and the capabilities of the local broker and brings those relationships together with what we have as capabilities and the culture works, we don’t have to force sharing on people. The fact that they can pick up the phone and say, “I’ve got a college University. I’ve never worked on one before. Can somebody help me.” We will swarm that opportunity.
We will write that college University they’ll get their fair share, everybody wins, and we’re not fighting that as a local entrepreneur who doesn’t want to play with the big boys. That’s the excitement. So I know that’s a long-winded weird way of saying it, but we are definitely taking share. To the numbers, Doug, I’d throw over to you.
Douglas Howell: [indiscernible] that 7% organic growth next year, I’d say that half comes from net new business wins or taking share. I would say, 1/4 is coming from exposure units and another quarter is coming from rate. If you got 9%, you probably got 1/3, 1/3, 1/3 in there.
David Motemaden: Got it. That’s really helpful. I appreciate that. And then maybe just a follow-up. We’ve seen obviously the 2 — the Cadence and Eastern deals on top of the M&T Bank broker last year or earlier this year. So I guess I’m sort of wondering — as we think about the sustainability of that organic, I know you’re the preferred provider for I think it was Cadence. But I guess, how do you manage the fact that — or the potential that there might be more of like an open process for some of those existing customers now that it’s not wholly owned. I don’t know if that’s something that you guys have worked through planning? Or just maybe help us think through that.
Patrick Gallagher: I’ll help you think through it and probably the people from Cadence Bank and say, he’s maybe talking off the top of the head, blah, blah, blah. But I don’t think the bank did much to help them produce insurance, like probably hurt their production, which is why when you look at some of these deals, the Board goes well, where is the growth. Cadence and Eastern good growth, but the fact is — those people have gone out and scrape for that business around the bank relationship, which was, of course, when they bought those firms, supposed to be the golden nugget in terms of being able to produce business that just isn’t true. In fact, I think we’re going to unleash an opportunity to really grow the top line.
Operator: Our next question comes from the line of Meyer Shields with KBW.
Meyer Shields: Two big picture questions. One, there’s been some press about larger insurance brokers getting back into wholesale. Would that matter at all to Gallagher?
Patrick Gallagher: Not really. If you take a look at our wholesale business, RPS. We do not mandate inside Gallagher, so it’s not 100% Gallagher placements there. We did consolidate down to a smaller number of players and RPS does about 50% of Gallagher’s placements. So we’re very cognizant of what the world is like out there. But really, RPS trades with 15,000 to 18,000 independent agents. And RPS does not trade particularly at all with our 3 larger competitors. So if they were the ones that choose to come in back into the market, we think it would have virtually no impact on us at all.
Meyer Shields: That’s very helpful. Second question, and this relates to what you’ve been talking about, Pat, with the additional resources that being part of Gallagher brings. How rapidly can acquisitions take advantage of that? And is that something we should factor in when we’re modeling acquired revenues?
Patrick Gallagher: Day 1, and I do mean day 1 and the team will swarm that opportunity. Now do they get used to operating that way? Have they got the customer teed up. It takes — it’s still a learning curve in all fairness, they’ll call and we’ll jump on the plane and have a shot at that university. But it will probably be a year or 2 before we land it. So I can’t sit here and go, day 1, it just ratchets up. But I’ll tell you what it does. It gets everybody in that firm excited. It worked. Gallagher helped, you can’t believe it. We turned this risk manager on their head. This is really cool. Next time around, what’s the strategy? What’s the methodology. So the resources are truly available to that team on day 1. Now would I factor into the earn-out. Some of them take great advantage of it and really does help. It makes their earnout. Others, as I said, it’s a longer ramp-up speed and it’s just a matter of the individual leaders.
Douglas Howell: Yes. One thing, I think we actually understate true organic because we don’t consider any new business, net new business wins by those mergers in the first year. That doesn’t get counted as organic. Was it $20 million, $30 million more of net new maybe across the business every year? I don’t know. It might be worth 20 basis points on our organic growth over the course of the year. So I think it naturally understates it. But I think the point is, like I said on this one just a minute ago. We had a merger partner that just crushed it here at the end of September, and that doesn’t go into organic, but it sure impacts our acquisition revenues. Now we try to give you that when we do these projections. So look at that on Page 6 of our CFO commentary.
But the point is the great mergers are the ones that come in, hit the ground running, use our resources and capabilities. And next thing you know over the next 2, 3, 4 years, they’re just hitting it out of the park.
Patrick Gallagher: We’ve showed you in our IR Day, things like our drive, just Gallagher Drive. One, just one item that is so cool to these people. And it’s basically the ability to sit with a client and say, people like you buy this. And here’s what the lines of insurance are there going to these types of truckers in your area or construction companies or senior living. Here’s the layers that they’re buying. And by the way, you’re holding a $10 million liability limit. Most of your competitors are paying 20 — or buying $20 million of umbrella. Let me show you the losses we have in our book that appears to $10 million. You probably ought to buy the 20, there’s reason for that. It blows the competition away and our merger partners can’t wait to get their hands on it. That’s 1 thing, and there’s a dozen of those.
Operator: Our last question is coming from Yaron Kinar with Jefferies.
