Even though an estimated $100bn-worth (£63bn) of insurance sector losses during 2011 are boosting catastrophe-related premium rates, insurance broker Jardine Lloyd Thompson (JLT) isn't really benefiting from that. In fact, management pointed to a still "soft insurance rating environment", reflecting the uneven nature of the upturn.
But JLT is doing well regardless. The risk and insurance unit – which generates nearly 80 per cent of total revenue – saw sales rise 11 per cent in 2011 to £642.4m, while trading profit there rose 8 per cent to £140.3m. The division's retail side grew revenue 15 per cent to £312.5m, as strong performances in Asia, Latin America and Australasia offset a tougher environment in Europe and Canada. The London market business performed well, too, with revenues up 8 per cent to £329.9m and trading profit up 7 per cent to £70.2m. The smaller employee benefits arm, meanwhile, boosted revenue 5 per cent, with trading profit up by a fifth to £26m, although profits were largely flat at the Thistle Insurance unit after it exited an unprofitable pet insurance line during 2010.
Broker Numis Securities expects pre-tax profit of £159.2m for 2012, giving EPS of 52.9p (from £148m and 45.3p in 2011).
JARDINE LLOYD THOMPSON GROUP (JLT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 695p | MARKET VALUE: | £1.52bn | |
| TOUCH: | 695-699p | 12-MONTH HIGH: | 775p | LOW: 562p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 131p* | NET DEBT: | 34% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 473 | 95 | 33.7 | 20.5 |
| 2008 | 536 | 93 | 29.6 | 20.5 |
| 2009 | 613 | 102 | 33.3 | 21.0 |
| 2010 | 741 | 119 | 41.8 | 22.5 |
| 2011 | 812 | 134 | 40.7 | 24.0 |
| % change | +10 | +13 | -3 | +7 |
Ex-div: 4 Apr Payment: 1 May *Includes intangible assets of £311m, or 143p a share | ||||
