JLT pleased with trading despite ongoing challenges
Source - SMW
Jardine Lloyd Thompson remains pleased with trading in the risk and insurance businesses, despite ongoing challenges and uncertainties in the economic, market, and political environments.
The group said JLT Specialty Europe reported a mixed revenue performance in the period from the start of July to 6 Nov, with good results achieved in construction, financial lines, and credit and political risks, but a weaker performance in energy and marine, reflecting the continued difficult industry conditions in these sectors.
And it said cost management more than offset the challenging trading environment.
It said JLT Re continued to build on the momentum shown in the first half of 2017. In International Specialty, Latin America performed well through the period while Australia started to realise the benefit of client wins announced at the interim results in July.
The group said US Specialty continued to grow revenue, bolstered by a strong performance of the Construction Risk Partners business acquired in January.
The group said it continued to anticipate that the full year net investment losses in US Specialty would reduce year on year, as the business headed towards profits in 2019, as guided previously.
JLT said UK employee benefits revenue continued to grow, recording some important client wins, as the benefits of the actions taken in 2015 and 2016 are fully realised.
It said the performance of the Asia EB business stabilised in the period, and an encouraging client pipeline indicated the underlying strengths of this business.
It said the other international EB businesses delivered good revenue growth in their respective markets.
The group said it continued to believe that it would deliver full year organic revenue growth more in line with historical rates.
The group said it anticipated this growth, combined with strong cost management, would enable sustained year on year financial progress.
It added: 'Due to the timing of insurance and reinsurance renewals, the Group does not expect the recent series of natural disasters around the world to have an impact on its 2017 full year outturn.
'With respect to the 2018 period, the initial marketplace response to these events has been inconsistent and it is premature to draw conclusions as to the effect these may have on the insurance rating environment.'