Jardine Lloyd profits rise 25%

Jardine Lloyd Thompson, which has recommended an offer from Marsh & McLennan, revealed that it grew profits 25% last year.

Revenues of £1.45bn were generated in the calendar year, up 5% on the previous year, with all divisions delivering organic revenue growth. Underlying profit before tax jumped 25% to £233.6m.

Trading profit grew 21%, driven by a 25% increase in the Global Specialty insurance business to £192.7m, 10% in Global Reinsurance to £45.8m and 8% in Global Employee Benefits to £51.2m.

The restructuring programme extracted £20.7m of benefits at a cost of £28.6m, with management aiming for further incremental benefits of £16.3m in 2019, and full annualised benefits of £40m in 2020.

No final dividend will be paid for the 2018 financial year.

Under the terms of the MMC takeover, JLT shareholders will receive a cash consideration of £19.15 per share.

The process of satisfying various competition and regulatory conditions is continuing, JLT said, with clearance received from the US anti-trust authority in October.