Interim Management Statement
8th November 2011, London: Jardine Lloyd Thompson Group plc ("JLT" or "the Group") is today releasing its Interim Management Statement for the period from 1st July to 7th November 2011 in accordance with the requirements of the Disclosure & Transparency Rules of the UK Listing Authority.
Performance
The Group's overall trading performance for the period is in line with expectations.
Organic growth in the third quarter in Risk & Insurance continued to be encouraging with a strong contribution from Latin America and Asia, although conditions in more developed markets such as Europe have been more challenging. The insurance rating environment remains weak across most sectors with the international markets continuing to be particularly competitive. However, following the recent run of catastrophe losses, the London Market and more specifically the Lloyd's Market appears to be less receptive to further rate reductions.
Our Employee Benefits business continues to make good financial progress and has delivered organic growth in line with our expectations. This is despite a trading environment in which clients are reducing discretionary spending, coupled with the general impact of rising unemployment.
Transactions and financial position
On 10th October, JLT announced the completion of the acquisition of an initial 50.1% interest in the share capital of Alta SA, Chile, with an option to acquire a further 25% in 2020. The initial consideration for the acquisition was £10m, paid on completion, with consideration for the put and call options exercisable in 2020 to be based on the profitability of the business at that time.
Alta is the holding company of Orbital Corredores de Seguros, the fourth largest insurance broker in Chile, and Alta Re, a reinsurance broker which commenced operations in April 2010. It has been a member of the JLT International Network since 2010.
On 2nd November, JLT announced its intention to combine its Italian business with Marine & Aviation SpA, with an ambition to become the leading Italian independent specialist insurance broker. JLT will have a 25% interest in the newly formed joint venture. As part of this transaction JLT will also acquire a 25% interest in Marine Aviation & General (London) Ltd. A further announcement will be made on exchange of contracts. It is anticipated completion will take place towards the end of 2011.
On 7th November, Jardine Matheson declared as wholly unconditional the offer to acquire a further 10% holding in JLT, increasing its holding from 30% to approximately 40%. Completion will take place within 14 days of that announcement. This increased investment by Jardine Matheson as a long-standing and highly supportive shareholder of JLT demonstrates its strong confidence in and commitment to the business.
There have been no other material events or transactions during the period and there have been no significant changes in the financial position of the Company since the publication of the Interim Results for the six months to 30th June 2011.
JLT's financial position continues to be robust with a strong balance sheet and extensive committed borrowing facilities with considerable available headroom.
Outlook
JLT's financial performance is naturally influenced by the general level of economic activity in the markets in which it trades and the current global economic outlook remains uncertain. Notwithstanding this, JLT remains on track to achieve its objectives and deliver year-on-year financial progress.
Dominic Burke, Chief Executive said:
"JLT continues to make good progress. While there is some caution about the wider economic environment, we remain confident about the future prospects for the Group".
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Enquiries:
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Paul Dransfield |
020 7528 4933 |
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Rebecca Shelley / Tom Burns |
020 7404 5959 |
Jardine Lloyd Thompson Group plc
Jardine Lloyd Thompson Group plc ('JLT') is an international group of risk specialists and employee benefits consultants and one of the largest companies of its type in the world. JLT offers a distinctive choice to clients and partners through its combination of independence, scale and specialism.
JLT is quoted on the London Stock Exchange and employs over 6500 people worldwide and through the JLT International Network provides services in more than 130 countries.
The Group's unaudited interim results for the six months ended 30th June 2011 are available on the Group's website www.jltgroup.com or from the Group Company Secretary, David Hickman, at 6 Crutched Friars London EC3N 2PH.
Contact Details
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