JLT reports profit growth
–14 March 2008
JLT has reported a good overall improvement in its underlying performance for the year. This was despite the challenging insurance market conditions and weak dollar which continued to prevail through 2007.
Dominic Burke, chief executive, commented: "I am very pleased to report a good set of results against a challenging backdrop.
“These results are a 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.”
Turnover for the year was £473.2 million ($946 million), three percent ahead of 2006, or four percent ahead at constant rates of exchange.
Profit before tax was £95.2 million compared to £90.8 million in 2006, up five percent. This includes an exceptional gain of £29.1 million arising on the completion of the merger of French associate SIACI with Assurances et Conseils Saint-Honoré (ACSH), partly offset by exceptional restructuring costs, impairments and other charges totalling £16.4 million.
The underlying trading profit before exceptional items and impairments was £62.1 million, six percent ahead of the prior year or nine percent at constant rates of exchange. The underlying trading margin improved to 13.1 percent from 12.8 percent in the prior year. Investment income for the year increased by £0.6 million to £17.5 million.
Turnover for the Risk & Insurance Group grew by three percent to £390.3 million or four percent at constant rates of exchange and trading profit was £63.3 million compared to £61.4 million in 2006, producing a trading margin of 16 percent, or 17 percent at constant rates, compared to 16 percent for the prior year. This business group comprises our retail operations around the world, together with our reinsurance, specialist risk and insurance businesses which are largely London based
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