Clarity of strategy has rewarded the broker with a strong half-year performance

Can this company do no wrong? JLT performed strongly in the first half-year. Its profits rose to £59.3m from £53.6m (2010 half year) and revenue climbed to £441.7m from £411.3m.

The key to JLT’s success has been clarity in its strategy. It has gone all-out in Latin America and Asia and both have shown strong revenue growth, up 14% and 18% respectively.

Back in the UK, JLT is clearly focused on specialisms such as engineering and sciences, areas where it can add real value with risk management and advice, instead of having to trawl the market for the cheapest price.

The jury remains out on Thistle, its UK managing general agency. It was a curious decision to set up a UK MGA, especially in a market that has a dog-eat-dog mentality on rates.

Interestingly, JLT’s shareholders’ equity was only around £302.5m, according to the half-year results. That might make it the perfect target for an Aon or Marsh takeover. However, last September’s decision by Asian-based conglomerate Jardine Mattheson to raise its stake in the JLT to 40%, has put that prospect firmly on the backburner.

For JLT the future looks bright, and it’s certainly not one in hands of a rival broker.

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