All material subject to strictly enforced copyright laws. © 2021 Insurance Insider is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

JLT shares fall following downbeat trading statement

Shares in Jardine Lloyd Thompson Group plc (JLT) came under sustained selling pressure last week after the firm issued another downbeat trading statement.

The UK headquartered broker warned that it was viewing the year with “continued caution” because of the weak US dollar, the absence of Placement Service Agreements and a “continued softening in insurance markets”.

The 28 April statement – issued at its annual general meeting - echoed a similar outlook made with its preliminary results on the 28 February 2005. “Since then,” explained the broker, “rates in most lines of business in which we operate have continued to fall and the dollar has remained weak”.

By the early afternoon, shares in the firm had fallen 5 percent to 340p, and closed on 29 April at 341.25p.

Last November, the group parted company with its chief executive Steve McGill amid suggestions from some insurance analysts that the firm had been too optimistic on its trading prospects.

As with the other major brokers, JLT disbanded the practice of charging contingent commissions last year. Although never a significant proportion of the group’s revenues, the company did warn in February that their abolition would remove some £8mn from this year’s profits (2004 profits before tax of £81.3mn).

On the positive side, the JLT reiterated that its employee benefits business “continues to perform in line with expectations”.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree