London-based insurance broker Jardine Lloyd Thompson Group plc reported net profit increased 88 percent for the six months of this year, helped by the sale of one of its units.
The firm reported net profit of ?62 million ($126 million U.S. at current exchange rate), an increase of ?29 million ($59 million) over last year's first-half results.
The company credited much of the increase with the ?29.7 million ($60 million) it received with the completion of the merger of French brokerage firm SIACI with another French brokerage firm, Assurances et Conseils Saint-Honor?. The result was partly offset by "exceptional restructuring costs of ?4.1 million ($8 million)."
Founded in 1932, SIACI has been an associate of the JLT group since 1991.
After the merger of the two units, JLT said it has become a 20 percent shareholder in the newly formed holding company, Newstone Courtage. The firm also said it has increased its direct shareholdings in SIACI's business in Italy by 40 percent, in Poland by 20-to-70 percent, and acquired a 62 percent shareholding in SIACI's business in Spain.
The firm reported fees and commissions of ?245 million ($497 million), up slightly less than 1 percent, or ?1.13 million ($2.3 million).
"After a positive first-half performance, we anticipate that the results in the second half will be impacted by the deteriorating market conditions and the weaker U.S. dollar," said Dominic Burke, JLT's chief executive. "However, we still expect JLT to show overall progress in its financial performance in 2007 compared with 2006. We will continue to build on the foundations we have laid and our clear strategy to build revenues through greater international collaboration, better penetration and growth through bolt-on acquisitions."
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