July 31, 2017 by Canadian Underwriter
Jardine Lloyd Thompson Group PLC recently released its financial results for the first six months of this year, reporting a 3% drop, on a constant rate of exchange, of risk and insurance revenue in Canada.
London-based JLT reported July 27 that worldwide, its risk and insurance revenue was £540.8 million for the first six months of 2017, up 12% from £481.8 million during the same period in 2016.
The British pound closed Friday at $1.63.
Risk and insurance revenue was up 3% on a constant rate of exchange basis, JLT stated.
JLT recorded a profit of £70.52 million during the six months ending June 20, nearly double the £36.12 million in profit during the same period in 2016. During the first half of last year, JLT recorded £10.15 million in restructuring costs and £22 million in litigation costs.
JLT was formed in 1997 when Jardine Insurance Brokers merged with Lloyd Thompson.
Total revenue – risk and insurance as well as JLT’s employee benefits business – was £689.9 million in the first six months of this year, up 11% from £619.4 million in the first six months of 2016.
JLT’s risk and insurance segment is comprised of its global specialist, wholesale, reinsurance broking, personal lines and small-medium enterprise activities.
JLT Canada reported risk and insurance revenue of £10.5 million during the first half of 2017. This was a 10% increase from £9.5 million during the same period in 2016, however JLT noted it was a decrease of 3% on a constant rate of exchange basis.
The reinsurance side of the business – JLT Re – reported £144.4 million in revenue during the first six months of this year, a 13% increase (5% on a constant rate of exchange basis) from £127.7 million in the first six months of 2016.
“JLT Re has started the second half of the year strongly, despite the continued decline in property catastrophe rates,” JLT stated. “The July 1st renewal season saw good business retention and new business generation, giving the group confidence in the outlook for the new business.”
In 2013, Towers Watson & Co. agreed to sell its reinsurance and property and casualty insurance brokerage business to JLT for cash consideration of US$250 million. From that, JLT formed JLT Towers Re and later dropped the Towers name. Towers Watson merged in 2015 with Willis Group Holdings plc to form Willis Towers Watson plc.
In the U.S., JLT reported July 27 that risk and insurance revenue was £35.2 million during the first half of 2017, more than double the £16.3 million in U.S. risk and insurance revenues recorded during the same period of 2016. On a constant rate of exchange basis, the increase was 92%.
“These results include the first contribution from Construction Risk Partners (CRP), which was acquired at the end of January 2017,” JLT said. “Organic revenue growth, which excludes the benefit of acquisitions, was 43%.”
JLT “remains confident that U.S. Specialty revenues will see a significant uplift in 2017 as a whole and that the business remains on track to turn to profits for the first time in 2019.”