Jardine Lloyd Thompson sees solid growth in 2017

Jardine Lloyd Thompson Group issued its preliminary results for the year ended 31 December on Wednesday, reporting revenues of £1.39bn - up 10%.

The FTSE 250 company said organic revenue growth was 5%, consisting of 6% growth in specialty businesses, 4% in JLT Re, and 8% in UK & Ireland employee benefits.

Underlying profit before tax rose 11% to £191.5m, while reported profit before tax was ahead 35% at £181.6m.

The firm’s underlying trading margin remained constant at 15.4%.

Its reported diluted earnings per share increased 45% to 54.7p, while underlying diluted earnings per share rose 14% to 58.5p.

The board confirmed a final cash dividend of 21.8p, bringing its total dividend for 2017 to 34.0p - a 5.6% improvement.

On the operational front, JLT said all businesses in the group achieved headline revenue growth year-on-year, underpinned by strong organic revenue growth of 5%, which was said to be in line with historical rates.

Trading profit in global risk and insurance grew 19% year-on-year, which the board said demonstrated the growing strength of the group worldwide.

US Specialty tapered its net investment loss and made further progress with the build-out, adding new clients, people and offices; the business remains on track to achieve profit in 2019.

The recovery in UK Employee Benefits drove its profit up 40% year-on-year, the board added, with higher margins and a number of substantial client wins in the year.

Looking ahead in terms of strategy, JLT said that effective 1 April, the group would be aligned into three divisions to facilitate closer global coordination and enhance client delivery - reinsurance, specialty, and employee benefits.

A group-wide transformation programme would deliver “globally consistent processes” and operational efficiencies, which the board said would create opportunities for improved returns through global client solutions.

Annualised savings of £40m were projected by 2020, for a one-off cost of £45m spread across 2018 and 2019.

It said the US Specialty build-out would focus on continuing organic growth, complemented by targeted acquisitions.

It also said its international employee benefits proposition was being developed, with close coordination of existing operations and the launch of an integrated offering to multinational clients.

“2017 was an important year for the JLT Group,” said group chief executive Dominic Burke.

“The decisions we took during the year and the strategic developments we have initiated will, I believe, mark the start of a new chapter in the growth of JLT.”