London-based Jardine Lloyd Thompson Group Plc reported a year-over-year increase in full-year 2017 profits and announced a reorganization of its business in a bid to improve returns.
From April 1, the group will be aligned into the three divisions of reinsurance, specialty and employee benefits. JLT also said it will implement a groupwide global transformation program to save £40 million annually by 2020, leading to a one-off cost of £45 million, spread across 2018 and 2019.
The company reported preliminary full-year 2017 profit attributable to owners of the parent of £118.4 million, up from £81.5 million a year ago. EPS came in at 54.7 pence, compared to 37.8 pence in 2016.
Fees and commissions revenue increased year over year to £1.38 billion from £1.26 billion. Investment income stood at £7.5 million, up from £4.7 million.
JLT incurred depreciation, amortization and impairment charges of £36.5 million in 2017, compared to £35.0 million a year prior. Total net exceptional costs narrowed on a yearly basis to £9.9 million from £37.7 million.
The company proposed a final dividend of 21.8 pence per share for 2017, up from the final dividend of 20.6 pence per share for the year-ago period, and payable May 8 to shareholders on the register April 3. The total dividend for the year stands at 34.0 pence per share, up from 32.2 pence per share in 2016.
For 2018, JLT said it does not expect a "consistently hard insurance market."
