<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from the
Arthur J. Gallagher & Co. Consolidated Financial Statements included in the Form
10-Q for the three month period ended March 31, 1998 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
       
                                                  
<PERIOD-TYPE>                   3-MOS                   3-MOS
<FISCAL-YEAR-END>                         DEC-31-1998       DEC-31-1997
<PERIOD-START>                            JAN-01-1998       JAN-01-1997
<PERIOD-END>                              MAR-31-1998       MAR-31-1997
<CASH>                                        148,057           131,279
<SECURITIES>                                   64,968            54,991
<RECEIVABLES>                                 193,236           189,954
<ALLOWANCES>                                  (1,611)           (1,003)
<INVENTORY>                                         0                 0
<CURRENT-ASSETS>                              444,170           404,315
<PP&E>                                         88,292            82,051
<DEPRECIATION>                               (61,360)          (56,369)
<TOTAL-ASSETS>                                630,628           536,535
<CURRENT-LIABILITIES>                         438,193           391,725
<BONDS>                                             0                 0
<PREFERRED-MANDATORY>                               0                 0
<PREFERRED>                                         0                 0
<COMMON>                                       16,994            16,372
<OTHER-SE>                                    160,797           116,952
<TOTAL-LIABILITY-AND-EQUITY>                  630,628           536,535
<SALES>                                       113,201           105,052
<TOTAL-REVENUES>                              120,279           111,477
<CGS>                                          65,912            61,210
<TOTAL-COSTS>                                  65,912            61,210
<OTHER-EXPENSES>                               37,584            36,231
<LOSS-PROVISION>                                 (77)             (163)
<INTEREST-EXPENSE>                                236               201
<INCOME-PRETAX>                                16,624            13,998
<INCOME-TAX>                                    5,652             4,760
<INCOME-CONTINUING>                            10,972             9,238
<DISCONTINUED>                                      0                 0
<EXTRAORDINARY>                                     0                 0
<CHANGES>                                           0                 0
<NET-INCOME>                                   10,972             9,238
<EPS-PRIMARY>                                     .66               .56
<EPS-DILUTED>                                     .63               .54