JLT – A Strong Foundation for Growth

China Airlines, BNP Paribas and, very

recently, Hitachi.

“JLT truly understands each client’s

business, their industry and the

specific risks they face,” said

Mr Burke.

In its other major revenue generating

area of employee benefits, JLT has,

over the last decade, broadened its

services and grown to become the

fourth largest employee benefits

business in the United Kingdom. Most

recently its capabilities increased even

further with the acquisition of HSBC’s

employee benefits business.

“The plan now is to internationalize

these employee benefits services

across the whole group,” said Mr Burke.

JLT’s ambition to further build its

activities took another significant step

at the beginning of 2011 with the launch

of JLT Specialty.

“This will allow us to capitalize on JLT’s

position as one of the world’s leading

specialty brokers,” said Mr Burke.

Some 175 years after Jardines first

entered the insurance business in

Canton, the Jardine Matheson Group

continues to be a strong force in the

global insurance market through its

32% shareholding in Jardine Lloyd

Thompson (JLT), which was formed in

1997 following the merger of Jardine

Insurance Brokers and the Lloyd

Thompson Group. JLT has more than

100 offices in 36 countries and some

6,200 employees. This presence is

extended further through the JLT

International Network, which provides

flexible, tailored services in over

130 countries worldwide through

JLT’s partnerships with leading local

insurance brokers, where it does not

have an owned JLT office.

Over the past five years, JLT has

reviewed and re-energized its strategy

with a clear vision to support its

continuing growth.

“Our vision is to be the best, though

not the biggest, international group of

risk specialists and employee benefits

consultants,” explained JLT Group

Chief Executive Dominic Burke.

JLT’s focus on developing a leadership

position is demonstrated by the range

of specialist services offered within

its Risk & Insurance group where its

capabilities are aligned to the client

industries it serves. These include

the Aerospace, Oil & Gas, Marine,

Life Sciences, Telecommunications,

Construction and Financial Risks

industries. JLT provides bespoke

solutions to address the individual

risk mitigation needs of each client,

an approach which has enabled it

to win and retain as clients, many

of the world’s leading companies in

each of these industries, among them

Exxon Mobil, Nokia, Astra Zeneca,

JLT provides bespoke solutions to address the individual risk mitigation needs of each client.

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Risk Specialists

“Our market-leading teams demonstrate the strength

of the JLT offering and our ability to attract and retain

the best industry professionals.”

The success of JLT, which was named UK National

Broker of the Year 2010 at the Insurance Times

Awards, is underlined by its strong financial

performance in recent years. As a group, over the

last three years, turnover has increased by 30%

and underlying profit before tax has increased by

over 50%.

“JLT’s proven ability in a highly competitive market to

win new business and deliver organic growth gives

us great confidence,” said Mr Burke. “We offer our

clients and business partners a distinctive choice

through a combination of independence, flexibility,

scale and specialism.”

JLT’s Risk & Insurance group provides

insurance and reinsurance broking and

risk management services for clients

across an extensive range of business

sectors. Employing over 4,000 people,

the principal lines of business are

Retail, Specialist, Wholesale and

Reinsurance.

In the Retail sector, JLT provides

services to private individuals,

SMEs and mid to large corporations.

As one of the largest dedicated

wholesalers, JLT provides brokers in

the US and elsewhere with access

to insurance capacity in London,

Bermuda and Continental Europe.

In the area of reinsurance, JLT brings

an analytical approach and a wide

variety of risk management solutions,

providing reinsurance broking and risk

management services for some of the

world’s leading insurers and reinsurers.

Centre: Warren Downey of JLT Specialty holding the UK National Broker of the Year 2010 award is congratulated by (left) Radio Presenter Chris Evans and (right) Equity Red Star Deputy Underwriter and Head of Distribution and Operations David Grant.

From its London headquarters, JLT’s Risk & Insurance group provides services for clients across an extensive range of businesses.

Employee Benefits Consultants

JLT Specialty

JLT’s Employee Benefits business

employs over 1,500 professional

staff in 15 offices in the UK,

Ireland and India. Services include

Pension Scheme Consulting and

Administration, Employee Benefits

Solutions and Wealth Management.

“In the constantly evolving world of

Employee Benefits, companies find

themselves spending increasing

amounts of time and money fulfilling

a growing number of legislative and

regulatory obligations,” said JLT

Employee Benefits Chief Executive

Duncan Howorth. “Any Employee

Benefits programme must, therefore,

be well planned, properly controlled,

efficient, cost effective and individually

tailored to the needs of the business

in question.”

JLT Benefits Solutions’ launch in 2009

of its powerful, easy-to-use online

benefits management system, BenPal,

has made a significant impact on

the business. BenPal enables any

company to develop an integrated

online strategy for delivering their

employee benefits and also offers both

online and mobile access to manage

pension plans and their investments.

Initially JLT targeted BenPal at

UK companies, but it has rapidly

expanded overseas with a number of

well-known names already using the

system such as Apple and Hitachi.

Most recently, BenPal has been used

in Brazil with Nokia, enabling its 600

staff there to view online their Total

Reward Statements including details

of their pension, life, healthcare and

dental cover. The appeal of BenPal was

also underlined by the recent launch of

a BenPal Pension Modeller App for the

Apple iPhone.

“Alongside rapid growth in the

UK, we see BenPal as the unifying

administration platform across our

global network of offices to underpin

our growing capability in international

employee benefits,” said Mr Howorth.

Through the newly formed JLT

Specialty, JLT serves the particular

needs of clients in selected industries

through a world-class group of

specialist teams. These include

the Construction sector where the

group boasts the largest team in the

Lloyd’s market and is the partner

of choice in over 100 of the world’s

major construction projects, and the

Aerospace sector, where over the last

five years, JLT has increased its share

of the aviation insurance market from

4% to its current position of 20%,

making it the third largest aviation

broker in the world and well on the

way to achieving its goal of becoming

number one.

JLT’s online benefits management system, BenPal, enables any company to develop an integrated online strategy for delivering their employee benefits.

Over the last five years, JLT has increased its share of the aviation insurance market to 20%, making it the third largest aviation broker in the world.

“JLT Specialty has grown to its position

today by applying its skills where

they make the biggest difference

for clients – it is this focus that

differentiates us from our largest

competitors,” said JLT Specialty Chief

Executive Officer Martin Hiller. “We

pride ourselves on the highest levels of

professionalism and integrity, combined

with senior-level attention to clients and

relationships. Such commitment has

gained JLT its exceptional reputation.”

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Developing Opportunities in Latin America

Worldwide Network

The JLT strategy of not having an owned

presence in every part of the world

enables the group to focus on areas

offering the greatest potential. In 2010,

the JLT International Network expanded

through new network partners,

GrECo, SIACI SAINT HONORE and

Ecclesia Group. This has significantly

strengthened JLT’s presence across

Continental Europe and added some 80

European offices to the Network, with

a particular emphasis on the growing

markets in Eastern Europe.

One of the aspects of emerging

markets that JLT finds most exciting

is that the industries that are driving

their growth are very closely aligned

to the specialist areas where the

group has market-leading expertise.

These include natural resources,

construction, aviation, healthcare and

telecommunications. It also means

that the JLT International Network now

offers not just risk specialist services,

but is also creating a market-leading

employee benefits data management

platform, through BenPal.

Just as important is the more efficient

way in which JLT now handles

business, through initiatives like The

Business Transformation Programme,

which was introduced in 2009

and involves the streamlining and

centralization of many back office

processes to JLT’s Mumbai office.

“This state-of-the-art facility has

proved a great success and it is now

JLT’s second largest office globally,”

said Group Chief Operating Officer

Mike Methley. “Meaningful cost

savings are almost entirely reinvested

directly back into the business in areas

such as new technology and additional

client facing resources.

“Today more than ever, JLT works

as one group that combines the

scale and resources necessary to

serve the world’s leading companies

while retaining the flexibility of a

smaller group, ensuring speedy

and open internal communications

and an appropriate response to our

clients’ needs.”

JLT is keen to develop new opportunities

in Latin America where it already has

strong majority-owned operations

in Brazil, Colombia and Peru and an

associate shareholding in Mexico.

The Brazilian market is a particular

focus. In 2009 it was the 10th largest

economy in the world and is forecast

to become the 5th largest by the end

of the decade. Growth sectors include

infrastructure projects and natural

resources, which match JLT’s areas

of specialism such as construction

and oil & gas. There is also a growing

middle class with rising average

incomes, which offers the potential

for increased spending on insurance

products. Added to this is an upward

demand for employee benefits and

private healthcare products driven by

the growing and aging middle class

population in the region.

“The changing demands of the

emerging economies in Latin America

are providing significant opportunities

for JLT, which we are exploring in line

with our strategy for growth,” said JLT

Chief Executive Officer Latin America

Vyvienne Wade. “JLT’s subsidiary

businesses have already established

market-leading positions in their

respective countries and we are now

the largest reinsurance broker in all

three countries.”

Many of JLT’s back office processes have been streamlined and centralized to its state-of-the-art Mumbai office.

JLT is exploring new opportunities for growth in Latin America in sectors such as oil & gas, one of the group’s areas of specialism.

Market Leader in Asia

JLT Asia is one of the top three

international brokers in Asia and

a market leader in insurance &

reinsurance broking, risk management

and corporate consultancy services.

With 1,100 staff and 18 offices in 13

territories, JLT’s technical abilities

and knowledge span a wide range of

industries and specialist areas and the

group is renowned for its innovative

approach to developing integrated

solutions to meet the complex risks

inherent in Asia.

“Our long history in Asia means that

our expertise and experience is second

to none,” said JLT Asia Chief Executive

Officer Warren Merritt. “Where client

needs dictate, our thinking goes beyond

the traditional boundaries of insurance.”

Currently JLT’s growth strategy for

Asia aligns with the emerging wealth

of the region and the increasing

levels of sophistication of its people.

Recent areas of development have

been Employee Benefits, Aviation,

Life Insurance, and Risk Management

as well as reinvigoration of a number

of the group’s existing areas of focus.

In addition, a new Marine initiative at

the end of last year has established a

JLT team in Indonesia to take a leading

position in the Hull and Protection

and Indemnity sectors there as

opportunities arise.

In the Aviation sector, increasing

demand for travel, the launch of

Asian-based budget carriers and the

expansion of existing established

fleets has contributed significantly to

JLT’s increased share of the aviation

insurance market over the last two

years. Indeed, of some 30 new aviation

clients won during that period, the

largest concentration has been from

the Asian region.

In response to the increasing desire

for health insurance from both the

corporate sector and a growing middle

class, JLT has implemented a broader

service capability and in the near

future will look to include a Third

Party Administration (TPA) offering

across the region under its Employee

Benefits banner.

also hopes to utilize the strength of

its regional and global brand to attract

leading players from our competitors,

as well as invest further in the training

and development of our existing staff

to ensure maximum staff retention.”

Building on its presence in mainland

China where JLT Lixin is the top broker

JLT’s Universal Life operations under

the banner of ‘Private Client Services’,

which incorporate life insurance

products for high net worth individuals

who wish to transfer wealth to future

family generations, have made

tremendous progress since the global

financial crisis with a substantial

increase in distribution agreements

with the private banking sector.

The specialist industries too offer

significant opportunities for growth, in

particular sectors such as construction

and energy, as governments invest

in infrastructure projects across the

region and explore ways of meeting

future energy demands.

“Other focus areas include investment

in products and services for the

small to mid-market sector using a

combination of IT and market facility

solutions,” said Mr Merritt. “JLT Asia

in Guangdong Province and has offices

in Beijing and Shanghai, the group

plans to drive expansion through

organic growth and acquisitions of

teams/personnel, and widen the

current business plan.

“This will give us the depth and

geographical positioning to continue

to deliver double – digit growth,”

explained Mr Merritt.

Further investment is also planned

in Hong Kong and Singapore, with

the recruitment of key individuals in

the leadership and specialty areas,

while in Japan, JLT is repositioning its

business to become a fully-licensed

insurance and reinsurance broker.

“JLT Asia has a strong geographic

footprint and presence in the region

with plenty of potential opportunities

for future expansion,” said Mr Merritt.

JLT has a strong presence in Asia where it is one of the top three international brokers.

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