JLT Chief Exec, Steve McGill, Quits
NU Online News Service, Dec. 1, 4:16 p.m. EST?Steve McGill, the chief executive for the London-based insurance broker Jardine Lloyd Thompson plc has resigned.[@@]
The firm made the announcement last week after revealing it expects profits before tax, exceptional items and goodwill amortization to be in the region of ? 100 ($193 million).The results would be an 11 percent decline from last year's results of ? 111 million ($214 million U.S.).
Ken Carter, chairman of JLT, will become chief executive for a period of up to two years. JLT said the firm would appoint a new chief executive by that time.
JLT blamed an insurance market, which it said has softened at a faster rate than expected for the results. Adding to lowering prices are a drop in revenues from United Kingdom and U.S. reinsurance business and weakness in the U.S. dollar.
While not saying the disappointing results were a direct cause of Mr. McGill's resignation, Mr. Carter, in a statement, said, "Although December remains an important month for revenue generation, the board is now of the view that the group profit before tax will be lower than the current market expectations and we have therefore moved to update the market accordingly.
He said the board had "accepted the resignation of Steve McGill and would like to thank him for his hard work and considerable achievements and wish him well for the future."
JLT also announced that it has received regulatory authorization from the Financial Services Authority to continue its brokerage business.
The FSA is a U.K. regulatory body that will assume regulation of insurance brokers as of Jan. 14, 2005. Formerly, the General Insurance Standards Council regulated U.K. brokerage business.
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