JLT to restructure business into three units: reinsurance, specialty, employee benefits
Jardine Lloyd Thompson Group unveiled radical plans to restructure the business in its 2017 results, which it hopes will result in annualised savings of £40 million by 2020 for a one-off cost of £45 million spread across 2018 and 2019.
The broker said that effective 1 April 2018, the group will be aligned into three divisions to “facilitate closer global coordination and enhance client delivery”. These will be: reinsurance, specialty and employee benefits.
It noted that a so-called group-wide ‘Transformation Programme’ will deliver globally “consistent processes and operational efficiencies creating opportunities for improved returns through global client solutions”. Annualised savings of £40 million are projected by 2020 for a one-off cost of £45 million spread across 2018 and 2019.
It said that its US Specialty build-out will focus on continuing organic growth, complemented by targeted acquisitions.
Its International Employee Benefits proposition is being developed, with close coordination of existing operations and the launch of an integrated offering to multinational clients.
Dominic Burke, group chief executive, said: “2017 was an important year for the JLT Group. The decisions we took during the year and the strategic developments we have initiated will, I believe, mark the start of a new chapter in the growth of JLT.”
It is also making a number of structural changes to the businesses and the management of JLT.
As announced in January 2018, Lucy Clarke has been appointed to the new role of Global CEO of the Group’s Specialty business. The company said it believes that bringing JLT’s regional insurance broking operations together into an integrated Specialty division, with leaders appointed in each of JLT’s principal industry specialities (Energy, Construction, Financial Lines, Aerospace, Marine & Cargo and Credit & Political Risks) responsible for globally coordinated sales and delivery to clients, will enable JLT to operate as a combined group of global specialists.
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