JLT ups pre-tax profits by 10%

Jardine Lloyd Thompson (JLT) announced its revenue up 14% including 5% organic growth to £612.9m with trading profit up 28% to £97.1m.

Pre-tax profit rose 10% to £102m, with underlying pre-tax profit up 10% to £104.8m.

Financial Highlights £m (2008 in brackets)

• Fees and commissions 612.9 (536.1) 14%
• Underlying trading profit 97.1 (76.2) 28%
• Profit before tax 102.0 (92.8) 10%
• Underlying profit before tax 104.8 (95.2) 10%

By division £m (2008 in brackets)

• Retail 269.5, up 14% or 4% without currency
• London Market 250.4 up 19% or 13% without currency
• Retail profit 51.0 (45.7)
• London Market profit 46.2 (34.3)

JLT said its Business Transformation Project would cut annual costs by approximately £14m in 2011

Dominic Burke, chief executive, said: "JLT achieved another year of strong growth and has good momentum. Whilst the insurance market rating environment remains soft, the group is well positioned for continuing growth and we look forward to the future with confidence."

Thistle

JLT is changing the structure of the group in the UK to "maximise the potential benefits" which can be generated from the development of its managing general agent, Thistle. The broker said: "The activities of JLT's UK retail insurance broking operations, currently reported within Europe retail, have for the last few years been undertaken by two quite separate parts of that business. The advisory operations, which has been a traditional broking business handling larger commercial risks requiring bespoke solutions, and the Non-Advisory operations which distribute cover principally underwritten by a single provider for smaller standard risks. During the first quarter of 2010, the Advisory operations will be merged with Jardine Lloyd Thompson Limited to capitalise upon the specialist strengths in that business. The non-advisory operations will at the same time be merged with Thistle Underwriters Limited, with the objective, over time, of substantially increasing the revenue stream written through this platform and increasing long term profitability for the Group through more efficient product distribution."

Retail and London Market broking businesses

Combined turnover increased by 16% to £519.9m or 8% at CRE, comprising 6% organic growth and 2% attributable to acquisitions. Underlying trading profit increased by 22% to £97.2m for the year representing an underlying trading margin of 19% compared to 18% for the prior year.

Retail

Turnover for retail businesses achieved growth of 14% to £269.5m, or 4% at CRE, comprising 3% organic growth and 1% from acquisitions. The trading margin remained at 19%.

London Market

London Market operations achieved strong growth in turnover and trading profit. Turnover increased by 19% to £250.4m, or 13% at CRE, comprising 10% organic growth and 3% by acquisition. The trading margin was 18% compared to 16% in 2008.

JLT

Jardine Lloyd Thompson, the London Market based speciality broker, achieved all round growth in revenue, trading profit and trading margin. Headline revenue growth was 14% including 10% organic growth, reflecting new business production.

Lloyd & Partners

Lloyd & Partners, the wholesale specialist, achieved revenue growth of 18%, or 9% at CRE, comprising 5% organic growth and 4% attributable to the acquisition of Craven in late 2008. This result was achieved despite the continued soft market conditions impacting their operations in Bermuda.

JLT Reinsurance Brokers

JLT Reinsurance Brokers had a strong year with revenue growth of 30%, or 21% at CRE, with a further improvement in the trading margin from 15% to 17%.

JLT said its Aviation and Aerospace expansion has placed them at the forefront of specialist aviation brokers and the non-marine treaty reinsurance business has grown strongly following the successful integration of Harman Wicks & Swayne, acquired in 2008.