JLT Reports Net Profit Jumped 55%

Jardine Lloyd Thompson Group plc reported net profit increased 55 percent in 2007 despite the soft market and currency weakness against the dollar.

The London-based insurance brokerage reported net income for the year of ?73 million ($145 million U.S.), an increase of ?26 million ($52 million) from 2006. Fees and commissions rose 3 percent, or ?14 million ($28 million), to ?473 million ($939 million).

JLT did not report quarterly results.

In a statement, Dominic Burke, chief executive, said he was pleased by "a good set of results against a challenging backdrop."

He said the numbers were "testimony to the hard work done over the past two years to reshape JLT and ensure that we have a good balance of earnings between the different businesses across the group.

"We believe we now have the right strategy, structure and culture. We have great confidence in our ability to deliver profitable growth in 2008," Mr. Burke added.

In its retail operations, JLT reported growth in all segments except Latin America, which declined 11 percent on disappointing results from its business in Mexico.

London market specialty business was down 2 percent, reflecting the soft market and the impact of a weak dollar that impacted profits by ?2.3 million ($4.6 million). JLT Reinsurance brokerage was off 8 percent compared to 2006, but its employee benefits business rose 8 percent.

The firm said the market remains very competitive and this situation should not change in the short- or midterm.

JLT said it expects further profitable growth in 2008.