JLT Group CEO Burke praises solid 2016 results
Strong growth in its risk and insurance unit, which comprises JLT Re and JLT Speciality, help Jardine Lloyd Thompson Group post a solid set of results for 2016 with both growth and improved profits despite what it called challenging trading and economic conditions.
Its revenues increased by 9 percent to £1.3 billion. Within this, its risk and insurance unit enjoyed growth of 11 percent to reach revenues of £960.9 million and its employee benefits business growth of 4 percent to reach revenues of £300.4 million.
Its underlying trading profit increased to £193.7 million compared with £187.5 million a year earlier, however, its pre-tax profit dropped by 13 percent to reach £134.9 million, largely because of a number of exceptional items which added up to some £37 million.
These included net costs of £21.1 million relating to a litigation settlement, which was marginally less than originally anticipated; restructuring costs of £13.9 million relating to the UK EB business; £1.2 million of acquisition and related costs; and a £1.6 million loss mainly on the disposal of a business in Indonesia.
It noted in the results that it has completed the turnaround of its UK employee benefits business, which is now set for a return to growth in revenues and profits; its build-out of US Specialty is on track to deliver profits in 2019.
It added that the peak of its investment programme was reached in 2016. Its recent acquisition of Construction Risk Partners completes its global construction capability. It also disposed of its non-core Thistle UK business, which made an operating loss of £3.6 million in 2016 in the parts which were divested.
Dominic Burke, group chief executive, said: "JLT has delivered a good set of financial results in 2016, particularly when set against the continued, challenging trading environment. The Group entered 2017 in good shape, with momentum and confidence that JLT is well-positioned to deliver organic revenue growth more in line with historical rates.
“I am proud of the achievements and progress we made in 2016 across all of our businesses. The resilience we showed last year positions us very well for further growth."
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