Global insurance and reinsurance brokerage and advisory, Jardine Lloyd Thompson Group plc (JLT Group or JLT), has outlined a new divisional structure and plans for a transformation programme.
This morning JLT announced revenues of £1.386 billion for the full-year 2017, up 10% on the prior year, and reported profit before tax of £181.6 million, up by an impressive 35%.
Organic growth was particularly strong, with 5% recorded across the business, split as 6% in Specialty businesses, 4% in reinsurance broking and advisory at JLT Re, and 8% in UK & Ireland Employee Benefits.
In reinsurance broking specifically, JLT Re saw revenues of £217.1 million, up 11%, which it said reflect organic revenue growth of 4% in these lines. JLT highlighted this growth, “despite the continued decline in pricing across most lines of reinsurance business and in most geographies across the year.”
Alongside the results JLT has outlined plans for some strategic restructuring and a transformation programme, as it seeks to position itself for ongoing growth.
JLT is realigning the group into three distinct divisions of Reinsurance, Specialty, and Employee Benefits, as of April 1st 2018, which it says will “facilitate closer global coordination and enhance client delivery.”
Additionally, the broking group is implementing a group-wide Transformation Programme, which it says will “deliver globally consistent processes and operational efficiencies creating opportunities for improved returns through global client solutions.”
JLT expects the transformation programme will result in annualised savings of £40 million by 2020 for a one-off cost of £45 million spread across both 2018 and 2019.
Dominic Burke, Group Chief Executive of JLT, commented, “2017 was an important year for the JLT Group. The decisions we took during the year and the strategic developments we have initiated will, I believe, mark the start of a new chapter in the growth of JLT.”
The company said that a re-examination of its strategy during 2017 confirmed that the firms specialist strength is a key differentiator between JLT and larger competitors, while its U.S. footprint gives the firm the chance to move from an international to a global business across each of the new distinct divisions, Reinsurance, Specialty and Employee Benefits.
Part of this will involve the divisional re-alignment, but also implementing the same integrated global management structure that JLT Re has been operating successfully with in its other lines.
From the second-quarter of 2018 these divisions will also constitute the reporting structure for the group.
Additionally, the transformation programme is designed to streamline operational processes and deliver global consistency, while also eliminating duplication of costs across the group. With JLT expecting by 2020 to use a consistent set of processes and core operating platforms across the divisions.
The goal is to “achieve significant, tangible benefits: a better client experience, improved cost efficiency and stronger controls” across the group businesses, JLT said.