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Trading statements

JLT remains confident

08 November 2016 07:26

Jardine Lloyd Thompson Group expects the trading environment to remain challenging for the remainder of the year but remains confident that its speciality-focused strategy will continue to deliver good levels of organic revenue growth.

The group's interim management statement for the period from 1 July says its Risk and Insurance businesses delivered a resilient performance during the period, in spite of the insurance and reinsurance pricing pressures in multiple markets and headwinds caused by ongoing global economic uncertainty.

It says: "JLT Specialty's performance in the period was good. Divisional performance in certain sectors such as Energy and Marine continued to reflect the impact of depressed commodity prices and reduced activity in these sectors, while other divisions, such as Aviation and Construction, performed well. The new business pipeline across Specialty was strong, with several significant client wins recorded in the period.

"JLT Re traded well in the period, with notable strength in the U.S. and Asia regions. The business remains on track to increase its operating margin to 20% in 2016. "Across the other Risk and Insurance businesses, including Latin America, Asia, and Australia & New Zealand, performance remained steady in the period.

"The build-out of our U.S. Specialty business continued in line with our plans. Total investment spend for this year will be approximately £6 million above that of 2015, reflecting the combined effect of the additional investment announced at the interim statement in July and the negative impact of foreign exchange movements.

"Our international Employee Benefits businesses saw good growth in the period, with a particularly strong performance in Australia & New Zealand, reflecting our focus on, and investments in, the return-to-work sector.

"Trading in UK Employee Benefits remained challenging in the period. Revenues in the second half of 2016 are expected to be ahead of those in the same period in 2015. As stated in the interim results in July, the business is on track to realise the remaining £7 million of targeted cost savings benefits from the restructuring programme we have implemented."

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