JLT beats rivals with 7% organic growth

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Profit up 13% as emerging markets revenues soar

Broking group Jardine Lloyd Thompson (JLT) achieved 7% organic revenue growth in 2011, beating fellow top-tier brokers Aon, Marsh, Willis and Arthur J Gallagher.

JLT’s total revenues for 2011 were £818.8m, up 10% on 2010’s £746.3m. The broker’s 2011 profit before tax was also up, improving 13% to £134.5m (2010: 119.4%). Excluding £31.m of one-off costs, which included an £8.9m restructuring bill, the profit would have been £147.6m.

Profit after tax was down 2% at £88.7m (2010: £90.7m), but this was because a one-off £13.2m tax credit boosted the 2010 result.

“Our emphasis on being a client-first organisation continues to serve us well, as demonstrated by our strong growth record,” JLT chief executive Dominic Burke said in a statement. “Our strategy, built around growing our areas of specialty, strengthening our international footprint and driving efficiency, provides us with confidence that we will continue to make financial progress in 2012.”

JLT’s risk and insurance division, which excludes employee benefits and the Thistle managing general agency, achieved 8% organic growth. The corresponding divisions at Aon and Willis both achieved 2% organic growth during 2011, while Gallagher reported 3% growth and Marsh & McLennan Companies 5%.

The good results came despite tough market conditions, which JLT said included “lacklustre GDP growth in mature markets and a soft insurance rating environment”.

The results were given a big boost by JLT’s operations in Asia and Latin America, where revenues grew 28% and 19%, respectively.

However, the Thistle MGA’s revenues were flat at £39.4m, and the profit increased only slightly to £5.8m from £5.5m.

“The lack of consumer confidence in the UK and Thistle’s exit from a significant but unprofitable book of business in 2010 has contributed to a flat revenue performance in 2011,” JLT explained.

But JLT added that Thistle is still in the investment phase of its development. “We remain committed to the business model, which is being successfully adapted in both Australia and Canada and there are plans to extend this into Asia and Latin America,” the company said.

Thistle appointed a new chief executive, James Twining, at the beginning of 2012.

JLT 2011 results in £m (compared with 2010)