JLT sees no consistent pattern for rates
While 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, broker JLT said in a May 1 trading statement.
JLT noted that it has made a good start to the year, set against the current insurance rating environment and sees itself well placed to grow and implement its strategy.
JLT has restructured its 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 the broker anticipates 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, according to the company statement.
The reinsurance business continued to make financial progress following positive January 1st renewal activity, JLT said. The good performances seen in 2017 in Europe and North America have continued into 2018.
JLT’s global employee benefits (EB) business traded well in the period, with the Asia region returning to growth, and the UK business maintaining the momentum seen in 2017, the company said.
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 in the UK was acquired in February, subject to regulatory approval. Chartwell is a specialised private medical insurance broker serving UK mid-market clients.
JLT 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 £33 million and benefits of £16 million remain as previously stated. The programme overall, once fully implemented in 2020, is expected to achieve annualised savings of £40 million for a one-off total cost of £45 million.
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