AJG stung with $8m contract loss

Arthur J. Gallagher’s (AJG) subsidiary, Gallagher Bassett Services, has been hit by an $8 million loss after it lost a contract for the administration of workers’ compensation with the state of New South Wales.

The contract will move to run-off status on December 31, 2014.

As a result of a recent tender process, the two non-insurers, including Gallagher Bassett, were moved into run-off status.

Most of the loss relates to a non-cash impairment of capitalised software dedicated to the New South Wales contract.