Jardine Lloyd Thompson Group PLC Trading Statement (6550M)
May 01 2018 - 1:00AM
UK Regulatory
TIDMJLT
RNS Number : 6550M
Jardine Lloyd Thompson Group PLC
01 May 2018
1 May 2018
Jardine Lloyd Thompson Group plc
Trading Statement 2018
Jardine Lloyd Thompson Group plc ("JLT" or "the Group"), one of
the world's leading providers of insurance, reinsurance and
employee benefits related advice, brokerage and associated
services, today publishes its Trading Statement, which covers the
period from 1 January 2018 through 30 April 2018.
Trading Environment and Performance
JLT has made a good start to the year, set against the current
insurance rating environment. As stated at our full year results
announcement in February, whilst most classes of reinsurance and
specialty lines have seen a moderation or end to price reductions,
there is not a consistent pattern, with increases generally limited
to areas and sectors where heavy losses had occurred last year. The
'trader's market', as we described the evolving market conditions
in February, leaves JLT, with its strong specialty broking
capabilities, well placed to grow and implement its strategy.
Looking in more detail at the performance of the Group's three
trading divisions:
Global Specialty
As we announced in February, we have now restructured our
specialty businesses globally under a new leadership team,
facilitating greater coordination and driving further growth.
Several important client wins were achieved in the period and we
anticipate continued good organic revenue growth in the year. The
US Specialty business remained on track to achieve continued
revenue growth, whilst further reducing net investment losses.
Global Reinsurance
Following positive January 1(st) renewal activity, our
reinsurance business continued to make financial progress. The good
performances seen in 2017 in Europe and North America have
continued into 2018.
Global Employee Benefits
JLT's global EB business traded well in the period, with the
Asia region returning to growth, and the UK business maintaining
the momentum seen in 2017.
Other
The Group completed two acquisitions in the first four months of
the year.
In February, JLT acquired International Risk Consultants, a US
trade credit and political risk broker, providing trade credit,
single-and-multi-buyer, and political risk insurance across the US,
Brazil and Hong Kong.
Chartwell Healthcare Ltd. in the UK was acquired in February,
subject to regulatory approval. Chartwell is a specialised private
medical insurance broker serving UK mid-market clients.
In line with our strategy, the Group anticipates further
investment in the business through targeted acquisitions and
continues to have a pipeline of opportunities to further supplement
organic revenue growth and extend our specialty capabilities.
The Global Transformation Programme, announced in February, is
progressing on schedule and the anticipated 2018 costs of GBP33m
and benefits of GBP16m remain as previously stated. The programme
overall, once fully implemented in 2020, is expected to achieve
annualised savings of GBP40m for a one-off total cost of
GBP45m.
Foreign exchange rates remained volatile in the period, and it
is too early to determine the impact for the full year.
As previously indicated, the Group will publish a restatement of
the 2017 financial accounts, during the second quarter of 2018,
reflecting the new structure of the business and the adoption of
the IFRS 9 and IFRS 15 accounting standards.
Outlook
As indicated in our 2017 full-year results announcement, we
entered 2018 with real momentum, which has continued through the
period, and anticipate delivering organic revenue growth in line
with historical rates and achieving further financial progress.
- ENDS -
Enquiries:
Jardine Lloyd Thompson Group plc
Charlie Rozes, Group Finance Director (0)207-558-3380
Paul Dransfield, Investor Relations (0)207-528-4933
Brunswick Group
Tom Burns / Dania Saidam (0)207-404-5959
Forward-Looking Statements
This announcement may contain "forward-looking statements"
regarding the financial position, business strategy or plans for
future operations of the Group. By their nature, forward-looking
statements involve risk and uncertainty, relating to facts that are
beyond the company's ability to control, such as future market
conditions. Any such statements in this announcement speak only as
at the date of this announcement. The company does not assume any
obligation to, and does not intend to, revise or update these
forward looking statements except as required pursuant to
applicable law.
LEI Number: 213800XRWB6SDDCZZ434
This information is provided by RNS
The company news service from the London Stock Exchange
END
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