Jardine Lloyd Thompson warns about challenging trading conditions in 2017

Insurer Jardine Lloyd Thompson said that it made a “good” start to the year but warned that the “challenging trading conditions of 2016 in many markets around the world have continued in 2017”.

The FTSE 250 company said that it entered 2017 with “good momentum” across its businesses and is confident that organic revenue growth will be delivered, which will generate sustained year-on-year financial progress.

JLT is well-funded with strong cash flow but said that it was too early to determine the impact of foreign exchange movements on its full-year results.

For the risk and insurance business, the momentum in prior periods has been maintained, with key client wins offsetting a “challenging” market environment.

The integration of the Construction Risk Partners acquisition is on track in the US, while overall American specialty losses due to the investment are expected to taper during the year.

Meanwhile, the employee benefits business continued to deliver good revenue growth, with and the company expects to realise the benefits of its 2016 restructuring programme in 2017.

JLT expects the employee benefits business to deliver a 15% trading profit margin for 2018.

Shares in Jardine Lloyd Thompson were down 0.27% to 1,103p at 0840 BST.