While the reinsurance and specialty lines insurance markets have experienced a moderation or end to price reductions after the major losses of 2017, the pattern of firming rates is not consistent and restricted mainly to loss hit areas, according to JLT.
Jardine Lloyd Thompson Group plc (JLT Group or JLT), the global insurance or reinsurance brokerage and advisory, explained that it sees a “trader’s market” currently, which it believes positions the company “well placed to grow and implement its strategy.”
In releasing its first-quarter management statement this morning, JLT said that it has made good progress on many fronts in Q1, as it makes progress with its previously announced Global Transformation Programme, which is designed to save it £40 million a year once completed.
The company has already re-structured its specialty lines broking business under new leadership, a move which JLT says will facilitate greater coordination and help to drive further growth.
A number of client wins were reported in the specialty lines area, with organic revenue growth now forecast for this year, both globally and in the core U.S. market.
In reinsurance broking, JLT saw positive activity at the key January renewal season, saying that its reinsurance business is making good financial progress and that the performance delivered in 2017 across Europe and North America has continued into this year.
The firm also said that its Employee Benefits business grew in Asia and that the UK market maintained momentum during the quarter.
Looking ahead, the broker says that it has further growth in mind through targeted acquisitions and says there is a pipeline of opportunities which could add organic revenue growth and extend the brokers specialty lines capabilities.
In a forecast for the year ahead, JLT said, “We entered 2018 with real momentum, which has continued through the period, and anticipate delivering organic revenue growth in line with historical rates and achieving further financial progress.”