Insurance broker Jardine Lloyd Thompson (JLT) saw its shares jump about 7 per cent to 664p after 30 per cent shareholder Jardine Matheson offered 765p a share to buy a further 10 per cent of the company. Jardine Matheson's management says that, while it wants JLT to remain as an independently listed company, it's also keen to "reinforce its long-term commitment to the company".
JLT's shares have suffered in recent weeks, but that has more to do with wider financial market turmoil than the company itself. Indeed, with so many costly first-half catastrophes – such as the Japanese and New Zealand earthquakes – then the insurance sector is seeing premium rates on the most affected business lines rise firmly as insurers attempt to rebuild reserves. And hardening rates boost commission income, which is good news for all insurance brokers.
