<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from 
the Arthur J. Gallagher & Co. Consolidated Financial Statements included in the 
Form 10-K Annual Report for the fiscal year ended December 31, 1998 and is 
qualified in its entirety by reference to such financial statements. 
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   12-MOS                   12-MOS                   12-MOS
<FISCAL-YEAR-END>                         DEC-31-1998              DEC-31-1997              DEC-31-1996
<PERIOD-START>                            JAN-01-1998              JAN-01-1997              JAN-01-1996
<PERIOD-END>                              DEC-31-1998              DEC-31-1997              DEC-31-1996
<CASH>                                        148,140                  153,181                  147,981
<SECURITIES>                                   57,368                   62,681                   53,409
<RECEIVABLES>                                 289,776                  221,832                  242,369
<ALLOWANCES>                                    1,500                      860                      889
<INVENTORY>                                         0                        0                        0
<CURRENT-ASSETS>                              530,956                  477,489                  473,508
<PP&E>                                         98,262                   88,029                   81,950
<DEPRECIATION>                                 66,801                   59,784                   55,239
<TOTAL-ASSETS>                                746,010                  652,080                  602,067
<CURRENT-LIABILITIES>                         530,656                  473,160                  454,024
<BONDS>                                             0                        0                        0
<PREFERRED-MANDATORY>                               0                        0                        0
<PREFERRED>                                         0                        0                        0
<COMMON>                                       17,645                   16,883                   16,749
<OTHER-SE>                                    184,823                  148,697                  117,817
<TOTAL-LIABILITY-AND-EQUITY>                  746,010                  652,080                  602,067
<SALES>                                       522,148                  467,336                  449,701
<TOTAL-REVENUES>                              540,655                  500,498                  473,753
<CGS>                                         281,509                  254,424                  249,674
<TOTAL-COSTS>                                 281,509                  254,424                  249,674
<OTHER-EXPENSES>                              173,087                  161,798                  154,081
<LOSS-PROVISION>                                  241                      636                    2,111
<INTEREST-EXPENSE>                              1,289                    1,018                      885
<INCOME-PRETAX>                                84,529                   82,622                   67,002
<INCOME-TAX>                                   28,028                   27,722                   22,775
<INCOME-CONTINUING>                            56,501                   54,900                   44,227
<DISCONTINUED>                                      0                        0                        0
<EXTRAORDINARY>                                     0                        0                        0
<CHANGES>                                           0                        0                        0
<NET-INCOME>                                   56,501                   54,900                   44,227
<EPS-PRIMARY>                                    3.25                     3.28                     2.64
<EPS-DILUTED>                                    3.10                     3.17                     2.54