Jardine Lloyd Thompson performing well, says management

Insurance and employee benefits group Jardine Lloyd Thompson updated the market on its trading and performance on Tuesday morning, describing its position as strong ahead of its annual general meeting later in the day.

The FTSE 250 firm described its start to the year as “good” in the overall trading of both its insurance and reinsurance businesses.

“This was despite external challenges that contributed to a difficult trading environment, including insurance and reinsurance rating pressure, lacklustre economic growth, and weak energy and commodity prices.”

JLT said its US Specialty build-out continued to gain strength, with the number of professionals employed in the business growing in line with plans.

In the employee benefits division, JLT’s board also described the growth as “good” overall, with the programme to improve the UK division’s profitability in 2015 making significant progress.

“Most of the restructuring of the UK business is now complete and will finish in the second half of the year.

“As announced on 1 March, it is anticipated that the restructure will deliver annualised savings of approximately £14 million in 2017, with £9 million of that benefit realised in the second half of 2016, when the substantial portion of annual profits will be delivered.”

The group’s board said the company remained well-funded and its financial position, including cash flow, continues to be strong.

Foreign exchange rates were currently favourable to JLT’s performance, though its board said it was still too early to determine the full-year impact.

Jardine Lloyd Thompson said it now expects total exceptional costs of £34m for the year, reflecting the £22m litigation provision announced on 8 April and the £12m restructuring cost for UK Employee Benefits as previously disclosed.

“We believe that the group remains on track to achieve its business and financial objectives in 2016, despite the headwinds which are now anticipated to persist through the year,” the board said.

“Further updates and a revised outlook will be provided at our half-year results announcement on 26 July.”