Jardine Lloyd Thompson Group, plc, reported revenues increased by 4 percent for the first half of the year, but net income declined 2.5 percent based on higher income tax and operating expense, the London-based insurance broker reported.
“In light of the difficult trading conditions, we have delivered a creditable performance,” said Dominic Burke, chief executive of JLT.
“Profits have been stabilized and we have made significant progress with our operational review,” he reported. “The review has served to highlight the quality of our people and the strength of our underlying business. Through this process, a road map is emerging that will help set the future direction of JLT. We anticipate that benefits will be reflected in 2007 and more fully in 2008.”
He added that the firm expects to see only modest improvements over its 2005 results in 2006.
For the six months, the firm reported fees and commissions increased ?9.7 million ($18.1 million at current exchange rate), from ?250.7 million ($468.5 million) to ?260.4 million ($486.6 million).
Net income decreased ?838,000 ($1.6 million), from ?33.7 million ($63 million) last year to ?32.9 million ($61.4 million).
To rein in costs, JLT said it is considering closing its pension plan to all new hires as of Dec. 1. It said the move would reduce pension liabilities by an amount that has yet to be finalized, but would be material to the firm's financials.
JLT said most of its divisions performed well, and that its North and South America operations benefited from winning new business, but margins remain under pressure.
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