The hefty premium rate increases seen on insurers' catastrophe-related lines – after 2011's stream of costly disasters – haven't really benefited insurance broker Jardine Lloyd Thompson (JLT). That's because the company earns its fees and commissions on business that isn't really focused on catastrophe cover and rate increases elsewhere have been modest. Nevertheless, JLT is growing fast – helped by an increasing emerging market exposure – leaving more share price upside looking likely.
JLT's core risk and insurance division increased half-year profits by 14 per cent year-on-year to £80.3m, on 8 per cent higher revenue, with operations in Latin America and Asia the star performers. Asian profits more than doubled and revenues in the region grew 22 per cent, while in Latin America revenue jumped 31 per cent and profits rose 30 per cent. Combined, the two regions now account for 16 per cent of divisional revenue.