Jardine Lloyd Thompson Group PLC Interim Management Statement (5507O)
November 08 2016 - 2:00AM
UK Regulatory
TIDMJLT
RNS Number : 5507O
Jardine Lloyd Thompson Group PLC
08 November 2016
8 November 2016
Jardine Lloyd Thompson Group plc
Interim Management Statement
Jardine Lloyd Thompson Group plc ("JLT" or "the Group"), one of
the world's leading suppliers of insurance, reinsurance and
employee benefits related advice, brokerage and associated
services, releases its Interim Management Statement for the period
from 1(st) July 2016 through 7(th) November 2016.
Trading Environment and Performance
Risk and Insurance
The Group's 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.
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 GBP6 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.
Employee Benefits
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
GBP7 million of targeted cost savings benefits from the
restructuring programme we have implemented.
Financial Position and Foreign Exchange
The Group remains well-funded and its financial position,
including cash flow, continued to be strong. The Group's overall
performance continued to be impacted by movements in foreign
exchange rates, following the EU Referendum in June. As an update
to the guidance at the interim statement in July of a full year
GBP12 million benefit, if Sterling/U.S. Dollar rates were to remain
at current rates of exchange, we now estimate a further GBP4
million benefit, for a total of GBP16 million on a full year basis.
This additional GBP4 million benefit is anticipated to be more than
offset by the incremental U.S. Specialty investment, the
challenging rating environment, and our ongoing organic investments
in growth markets around the world.
Outlook
The trading environment is anticipated to remain challenging for
the remainder of the year. Despite these conditions we continue to
invest across the Group to drive future growth, improve margins and
win market share. We are confident that our specialty-focussed
strategy will continue to deliver good levels of organic revenue
growth.
- ENDS -
Enquiries:
Jardine Lloyd Thompson Group plc
Charlie Rozes, Group Finance Director (0)207-558-3929
Paul Dransfield, Investor Relations (0)207-528-4933
James Russell, Corporate Communications (0)207-558-3127
Brunswick Group
Tom Burns / Dania Saidam (0)207-404-5959
Forward-Looking Statements
This announcement may contain "forward-looking statements"
regarding the financial position, business strategy or plans for
future operations of the Group. By their nature, forward-looking
statements involve risk and uncertainty, relating to facts that are
beyond the company's ability to control, such as future market
conditions. Any such statements in this announcement speak only as
at the date of this announcement. The company does not assume any
obligation to, and does not intend to, revise or update these
forward looking statements except as required pursuant to
applicable law.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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November 08, 2016 02:00 ET (07:00 GMT)
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