Jardine Lloyd Thompson sees reinsurance profits slowdown

INSURANCE broker Jardine Lloyd Thompson (JLT) yesterday said that profits from its reinsurance business are set to fall this year.

Despite delivering good revenue growth the unit has encountered difficulties, as large insurers become more reluctant to pass on risk.

“This, together with our continued investment in the business, means that we now expect trading profit in this division to be lower in 2012 than in 2011,” the firm said in a statement.

However overall revenue growth at JLT between 1 July and 17 October was described as “in line with expectations”, assisted by growth in the Latin America and Asian markets.

Speaking ahead of an investor presentation, Panmure Gordon analyst Barrie Cornes reiterated his “hold” rating and said he believes the firm is “fully valued” and “vulnerable to any disappointment, compounded by the lack of liquidity”.

JLT also confirmed that Mike Reynolds will start work as group finance director on 26 November.