JLT 2010 profit rises 28%

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Broker reports organic revenue growth of 7%

Broking group Jardine Lloyd Thompson (JLT) made a profit after tax of £90.7m for the full year of 2010, up 28% on the £70.9m it made in 2009.

Total revenues, comprising fees, commissions and investment income, increased 21% to £746.3m in 2010 from £619.3m in 2009. At constant exchange rates, revenues increased 14%, of which 7% was organic and 7% was achieved through acquisition.

JLT chief executive Dominic Burke praised the result amid challenging industry conditions. “Our clear focus on clients, coupled with the benefits of the investments we are making in leading industry professionals, systems and acquisitions, provides us with confidence that we will continue to make financial progress in 2011, building on the strong momentum developed in 2010," he said in a statement.

All of JLT’s three business units – risk and insurance, employee benefits and Thistle Insurance Services, posted growth in both revenues and trading profits.

Risk and insurance, JLT’s biggest division accounting for 77% of total revenue, saw total revenues increase 17% to £576.6 million or 8%at constant exchange rates. Underlying trading profit was up 31% to £129.7m.

Revenues in the employee benefits division, which accounts for 18% of the total, increased 46% to £132m, reflecting the integration of the acquisitions of HSBC Actuaries and Consultants and iimia Wealth Management. Organic revenue growth was 4%, while trading profit was up 52% to £22.4m

Thistle, the company’s underwriting business which accounts for 5% of total revenues, saw revenues increase 11% to £37.7m. Organic growth was 6%. Trading profit was up 45% to £4.8m.

JLT’s business transformation programme, under which the company aims to cut the costs of doing business by streamlining its back-office, is scheduled to complete in 2012. JLT estimates the programme will deliver annualised savings of £16m across the group by 30 June 2012, from cumulative one-off costs of £19m.

JLT 2010 highlights in £m (compared with 2009)