Presentation is loading. Please wait.

Presentation is loading. Please wait.

Distinctive. Choice. JLT Investor Seminar Introduction Dominic Burke, CEO.

Similar presentations

Presentation on theme: "Distinctive. Choice. JLT Investor Seminar Introduction Dominic Burke, CEO."— Presentation transcript:

1 Distinctive. Choice. JLT Investor Seminar Introduction Dominic Burke, CEO


3 Distinctive. Choice. JLT Reinsurance Brokers Limited Alan Griffin Chairman & CEO

4 JLT Reinsurance Brokers Ltd Risk & InsuranceEmployee Benefits Jardine Lloyd Thompson Group London Market Jardine Lloyd Thompson Ltd Specialty Lloyd & Partners Wholesale JLT RE Reinsurance/ Aerospace May 2009 Retail EuropeAustralia & NZ Latin America CanadaAsiaInsurance Management JLT REJLT AEROSPACE

5 Where we are today… JLT Reinsurance Brokers Limited (300) JLT Re (205) JLT Aerospace (75) Business Research (20) Europe ( 128) Bermuda (2) North America (55) UK (58) North America (17) Asia (20) Including staff numbers

6 Staff numbers Re Aero

7 Revenue (£000s) Re 31,46229,51533,206 Aero 15,98214,52415,627 47,44444,03848, Re 2,7558.8%3, %4, % Aero 1,2307.7%1, %2, % 3,9858.4%4, %7, % Trading profit and trading margin

8 Distinctive. Choice. JLT Re

9 JLT Re Started Life as… A medium-size broking team imbedded in an insurance broking operation No recognised reinsurance brand Portfolio dominated by marine and energy business Lack of analytical and risk modelling capabilities Essentially, a London-based operation JLT Re 2006 Portfolio Non-Marine (24%) Marine (61%) Aviation (15%) Estimated Global Market Non-Marine (94%) Marine (4%) Aviation (2%)

10 JLT Re Strategic Plan 2006 – 2010 Focus on risk and capital management, not just reinsurance/risk transfer Balanced business mix reflecting market opportunities International brand Single, client-centred global entity Effective international network with centres of excellence in key markets Efficient business processes – a 21st century operation Innovative advisory services and thought leadership

11 To date we have : Made a significant investment in analytical expertise Established a presence in USA/Bermuda Established Non-Marine Treaty practice in London through hires and acquisition of HWS We continue to: Hire individuals/teams Consider acquisitions

12 JLT Re Business Mix 24% 61% 15% 33% 53% 14% MarineAviationNon-Marine %40% 11% 2008 Estimated Global Market Non-Marine (94%) Marine (4%) Aviation (2%)

13 Distinctive. Choice. JLT Aerospace

14 Acknowledged number 4 Broker in Class Blue Chip client list

15 JLT Aerospace Clients

16 JLT Aerospace Acknowledged number 4 Broker in Class Blue Chip client list Opportunities for growth : –Asia –USA –2 nd and 3 rd tier operators, general aviation

17 Today JLT Re & JLT Aerospace Providing a real alternative to clients.

18 Distinctive. Choice. Lloyd & Partners John Lloyd Chairman & CEO

19 What is Lloyd & Partners? Wholesale brokerage firm providing specialised transactional / service solutions for independent brokers, worldwide but particularly in the USA and JLT retail operations, worldwide but particularly in Australasia / Canada and South America. Operating from London and Bermuda (JLT Park) 240 Staff: –London: 210 –Bermuda: 30

20 Key Disciplines: Energy & Marine Cargo, Fine Art & Specie Property Casualty, Healthcare & Professional Lines Property 22% Energy & Marine 30% Casualty, Healthcare & Professional lines 26% Cargo, Fine Art & Specie 22%

21 A sustainable growth story Achievement in last two years: Acquisition of Park Ltd in Bermuda to create more complete product offerings – Casualty, Financial Lines & Property. Strengthening Property capability with particular focus on mining industry. (3 hires) Creation of Fine, Art & Specie capability to add diversification to Cargo offering. (3 hires) Creation of facultative R/I capability to Energy team to create better value on premium handled. (3 hires) Acquisition of Craven & Partners to broaden Marine and Onshore Energy capability and more Cargo resource. (15 hires) Expansion of Property programme team to enhance capability. (2 hires, to date)

22 Revenue: £41.2 millionRevenue: £47.1 million Trading Margin: 17%Trading Margin: 17% Goal is continued double digit top line growth and improved trading margin. A sustainable growth story

23 Distinctive. Choice. Jardine Lloyd Thompson Ltd Martin Hiller CEO

24 JLTL Business Mix Marine Oil & Gas (25%) Natural Resources (12.5%) Construction (25%) Financial Risks (17.5%) GRS - Life Sciences, Telecoms & major accounts (10%) GCube (10%)

25 ROEs Turnover£106.3m£119.0m£116.0m Trading Profit£8.0m£19.5m£16.5m

26 Revenue Growth Initiatives New business Facilities and higher commissions Segment development / diversification Investments

27 Segment Development / Diversification Construction Latam US Infrastructure European contractors GRS Clinical trials Global support Non damage BI Oil & Gas Renewable Energy International E&P Offshore Construction Financial Risks Lawyers PI Residual Value Sport Natural Resources US Casualty Latam Renewable Energy Marine P&I Special Risks Power Barges

28 Investments 2008 Real Estate Core Risks Middle East & North Africa Retail Power Transportation/Utilities Future GCube Claims/Echelon PI, E&O & D&O GRS – Major Accounts Further Bolt-ons

29 Distinctive. Choice. JLT Asia Pacific Brian Carpenter Chairman

30 Asia Trading Performance 2008:Revenue 40, % Trading Profit 8, % PBIT 8, % 4 Year Average Ratio 2005/08 Trading Ratio20.17% PBIT/Revenue21.50%

31 JLT Asia Historically major P&C activities 2008 review, introduction of specialties under matrix structure Objectives –Grow business organically and through bolt-on acquisitions –Reduce volatility –Focus on emerging wealth of Asia –Focus on products and services to the mass populations and small to mid-corporates

32 Opportunities for JLT in Asia Private Client Services Affinity SME Personal Lines Financial Institutions Aviation Capital and Political Risks Energy Construction Employee Benefits Creation/Enhancement of specialist teams that focus on the Asian growth drivers

33 Affinity Short-term –Mixture of challenge and opportunity in the short-term Long-term –Growth opportunities within certain business lines –Delivering insurance products efficiently and effectively at points of sale to support consumer purchases Opportunities –Insurance products to support motor vehicle sales and service (China automobile market; Indonesia motorcycle market; extended warranty) –China crop insurance –Personal Accident & Health

34 Aviation Expect significant increase in aircraft deliveries to Asia over next 20 years Asia is a leader in new aircraft orders Aviation risks are transferred to insurance market – no self insurance JLT building regional capabilities to focus on aviation and ancillary insurance

35 Energy Direct link between energy demand and population/economic growth Growth in energy demand and power generation in Asia: 6.9% CAGR in power generation forecast through 2018* Plans in place to develop high net worth energy products Asia upstream energy projects: 75 upstream projects with total value of USD104bn in next 5 years** *Source: BMI China Power Report Q **Source: Energy Industries Council (EIC)

36 Employee Benefits Retirement consulting, administration and products –Ageing population low birth rates –Normal retirement age increasing –Trend away from DB to DC plans –Increasingly complex benefits structures Healthcare –Rising medical care costs; increase in lifestyle diseases –Ageing populations, health risks, new technologies, pharmaceuticals, consumer demand –Government sponsored plans on the rise –Growing interest from employers in managing EB programs effectively and economically

37 2008: $A Revenue:160, % Trading Profit: 39, % PBIT: 47, % 2005/08Trading RatioPBIT/Revenue JLT25.75% 30.95% Marsh11.95% 18.35% 2005/07 Aon22.00% 29.40% Willis20.63% 25.26% Australian Trading Performance

38 Strong Business Base Approximately 60% of PBIT is derived from non-transactional clients Government Instrumentalities –Provide insurance/risk management services to over 90% of Australian local councils –Administration of self- insured funds –State and Federal entities Echelon Consultants –Claims management –Enterprise risk management –Environmental risk management –OHS/rehabilitation services –Loss adjusting

39 Strong Business Base Affinity –Group schemes for sporting organisations, trade associations and common interest groups –Developing opportunities with Trade Unions –Management of discretionary trusts –Employee benefits: life/health care

40 General Broking - Segments Corporate: – National new business structure – Recruitment of high profile executives – Culture transformation from transactional to business advisor – Investment in risk modelling software Natural Resources and Construction – New business team employed – Broader set of skills introduced to existing/new clients

41 General Broking - Segments SME: – Business re-engineering – Delivery channels – National centralisation – JLT Online opportunities Regional Network: – Expansion of offices in Townsville – New offices in Darwin/Gold Coast

42 Asia Pacific Summary Re-engineering existing key segments Identified new products/segments Recruiting specialists from Brokers/Underwriters Investing in training/education Minimizing cost base Seeking acquisitions

43 Distinctive. Choice. International Flows Mark Drummond Brady International Chairman, Risk & Insurance

44 International Chairmans Role Breaking down barriers – internal and with The Market Developing collaboration throughout the Group Managing and developing our Global Network Expanding distribution and Global Flows Promoting and defending the JLT brand globally

45 International Collaboration - Brazil Early identification of seismic market shift Selection of local partner / formation of JLT Re Education of Markets / Lloyds obtains reinsurance licence Flows emanate from local retail operations to local reinsurance office, to London and international markets Flows emanate from all over JLT Network to Brazil

46 JLT Network Retail network – we also have Wholesale, Reinsurance and Specialist businesses around the world Owned offices: more than 100, in 36 countries Network partners in 120 countries Global Support Unit in London Network Managing Director

47 US Broker Sales Initiative JLT has long been a Champion for the independent sector London, Bermuda and International Markets for Wholesale and Surplus Lines The Network is a USP for JLT with brokers with international or multi-national clients Sales drive operates at all levels of the Group 35% increase in sales in 08, over 07

48 Distinctive. Choice. JLT Investor Seminar A Sustainable Growth Story

49 JLT Latin America Vyvienne Wade CEO

50 What is JLT Latin America? Why is Latin America important to JLT?

51 JLT LATIN AMERICA JLT Offices JLT Brasil (Retail and Reinsurance), Rio de Janeiro JLT Brasil (Retail and Reinsurance), São Paulo JLT Mexico JLT Corredores de Seguros & JLT Valencia e Iragorri, Medellín JLT Re Colombia, Bogotá JLT Valencia e Iragorri, Cali JLT Corredores de Reaseguros, Lima Mariateguí JLT Corredores de Seguros, Lima Jardine Lloyd Thompson & Valencia e Iragorri, Bogotá JLT do Brasil, Ribeirão Preto Network Members Kieffer & Associados SA, La Paz Prodese, Quito Corporacion Continental, Panama Risk Solutions Venezuela, Caracas Seguransa Meta CA, Caracas Risk Solutions Group, Santiago Subsidiary Operations in 4 countries – Peru, Mexico, Colombia and Brazil. Network partners represent in the rest of the major economies in Latin America. Middle Sea/AMR SA, Buenos Aires

52 OUR LATIN AMERICAN REGIONAL FINANCIAL STATISTICS for subsidiary LATAM businesses RETAIL REINSURANCE* All figures in £ 000s Operation BrazilPeruColombiaMexicoPeruColombia LATAM REGION# Rev. Actual 07 Trading Profit 07 Trading Margin 07 2, % 1, % 4, % 2,374 (923) N/A % 4,164 1, % 16,075 1, % Rev. Actual 08 Trading Profit 08 Trading Margin 08 2, % 2, % 6, % 2,628 (375) N/A 1, % 5,401 2, % 20,864 3, % Headcount 07 Headcount CONSOLIDATED *JLT Brazil Re – new venture for 2008/2009 so not included in these numbers. #There are one or two central adjustments so the consolidated number is not the simple sum of these 6 businesses.

53 JLT LATIN MARKET POSITIONS Shareholder Structure Partnership with strong local minority long term shareholder management partners

54 REGIONAL ECONOMIC ENVIRONMENT Growth economics GDP GrowthPeruBrazilMexicoColombia %3.7%5.1%6.9% 20079%5.9%3.3%7.5% %5.1%1.3%2.5% 2009 (forecast) GDP3.8%3%(-4%)2% GDP 2008US$129billionUS$1.58 trillionUS$893billionUS$242billion Population million191million106.7million47.6million Major Economic Sectors within Territories. All economies which have strong growth sector match with JLT Specialisms PeruBrazilMexicoColombia Construction Industry/Manufacture AgricultureIndustry/ManufactureAgriculture Aviation MiningConstructionMiningConstruction Industry/Manufacture Oil & GasMiningOil & GasMining Oil & Gas PowerOil & Gas Power TelecomsPower Transport/Roads/Infra TourismTelecomsTourismStructure

55 JLT COLOMBIA Market Position JLT both a retailer and a facultative reinsurance broker in Colombia Largest reinsurance broker & 4 th largest retail broker Operation Rev. Actual 07 Trading Profit 07 Trading Margin 07 Rev. Actual 08 Trading Profit 08 Trading Margin 08 Headcount 07 Headcount 08 All figures in £ 000s JLT Areas of focus: Public Sector, Financial Institution, Construction, Utilities, Oil & Gas & Employment Benefits JLT Opportunities: Construction, Oil, Aviation (General), Oil & Gas sector, Employment Benefits Colombia 4, % 6, % Colombia 4,164 1, % 5,401 2,301 42% RETAILREINSURANCE

56 JLT MEXICO Operation Rev. Actual 07 Trading Profit 07 Trading Margin 07 Rev. Actual 08 Trading Profit 08 Trading Margin 08 Headcount 07 Headcount 08 Mexico 2,374 (923) N/A 2,628 (375) (N/A) Turn Around: Lost much major business in 2006/2007, rebuilding, good growth forecast for 2009 and a return to profitability. Strategy: to seek a retail broking partner and to leverage facultative reinsurance capability. All figures in £ 000s REINSURANCE JLT Position: A facultative reinsurance broker only focusing on complex risk with international placement requirements. JLT Focus Areas: Aviation, Construction, Power & Industrial, complex risk. Market Position: 6th or 7th largest in revenue terms.

57 JLT PERU Operation Rev. Actual 07 Trading Profit 07 Trading Margin 07 Rev. Actual 08 Trading Profit 08 Trading Margin 08 Headcount 07 Headcount 08 Peru 1, % 2, % Peru % 1, % JLT Peru Retail Focus Areas: Employment Benefits, Mining, Construction, Power, Energy, Aviation. JLT Peru Reinsurance Focus Areas: Mining, Construction, Power, Energy, Aviation. Opportunities: Growing economy, government infrastructure investment, and inwards investment. Close working alliance between the retail and reinsurance businesses. All figures in £ 000sREINSURANCE RETAIL JLT Position: 3 rd largest combined insurance/reinsurance broker: (2 nd largest reinsurance broker, 3 rd /4 th largest insurance broker, largest Employment Benefits broker).

58 JLT BRAZIL Operation Rev. Actual 07 Trading Profit 07 Trading Margin 07 Rev. Actual 08 Trading Profit 08 Trading Margin 08 Headcount 07 Headcount 08 JLT Brazil Retail Established for 20 years. Focus post opening of the market on developing a strong retail business in Brazil. New MD recruited. JLT targeting both organic and acquisition growth within its retail business. Focus areas: construction, agriculture (particularly ethanol/ sugar) power, oil & gas, industrial and employee benefits. Opportunities: closer alignment with JLT reinsurance operation working together to win major accounts. Business sector areas for focus Construction, Oil & Gas, Power, together with Employee Benefits and potentially Online/Affinity. JLT Brazil Reinsurance A relatively new start up in Brazil combining previous partners. Strong first 9 months of trading and already a market leader. Focus areas: Construction, Oil & Gas, Treaty Reinsurance, aviation and specie. Opportunities: new products – opening of the market, alignment with a stronger JLT retail business in Brazil, Complex risk, Construction, Oil & Gas, Power. Brazil 2, % 2, % Opportunity Largest economy of South America: 191 million people: GDP US$1.58 trillion Growing foreign investment: US$18 billion 2006; US$33 billion 2007; US$45 billion Opening of the reinsurance market, previous monopoly on reinsurance placements of IRB dismantled. Local admitted reinsurer monopoly reduced to 60% in 2008, 40% in 2011 and 0% in 2012.

59 WHY LATIN AMERICA FOR JLT? Our subsidiary operations are strong profitable businesses in their own right with strong market positions within their own territory. JLT employees within Latin America are high calibre recognised professionals. The JLT Latin American shareholder structure – long term economic alignment between senior staff/local shareholders and JLT. The economies of the countries in which JLT has operations, are growing economies generally. The Latin America territories have economies which are growing in areas which coincide with JLTs specialties: eg construction, mining, oil and energy, power, aviation, telecoms. Large complex risks and catastrophe exposures with limited local capacity give rise to business flows to JLT in London and Bermuda generating significant revenues. These are fully brokered insurance markets where the role of the broker is accepted and the norm. The middle class is growing within the Latin American territories which gives rise to good opportunities for employee benefits, affinity and potentially online insurance products. Brazil: opening of the reinsurance market – opportunities for new products in a very large economy in the most sophisticated insurance culture within the BRIC countries combined with economic growth potential thus providing many opportunities. A sustainable growth story

60 Distinctive. Choice. European Retail Adrian Girling CEO

61 What do we do? We are a Composite Broker, with business operating in two main areas:- Division Advisory Clients Full service, independent advice. Mid market & Specialist Risks Products Complex Products. Service delivery Face to face with client. Non advisory Single policies, no advice. Individuals and SMEs Simple Products. On line or Tele-sales and service.

62 European Retail - Income growth £ms

63 Last years financials 12% Growth on %Trading Margin 11,116Trading Profit 67,242Revenue Actual 2008 £000s 17% 10,302 60,051 Actual 2007

64 Geographic locations United Kingdom –Birmingham –Coventry –Gloucester –Leeds –Liverpool –London –Maidenhead –Manchester –Southampton Poland –Warsaw Ireland –Dublin –Cork Italy –Milan –Turin Spain –Madrid Norway –Oslo Sweden –Stockholm

65 Income breakdown

66 JLT Partnership Practice Accountants –JLT Corporate Recovery Lawyers –JLT Law Capital Providers –JLT Mergers & Acquisitions Accountants Lawyers Capital Providers


68 What have we done? We have continued to develop the existing brands –Photoguard –Cycleguard –Musicguard How do customers find us? –



71 2008 Growth year on year was at 27% JLT Online

72 Where do we want to go? We have added new products –Pets –Touring caravans We have entered the micro commercial market, defined by the DTI as having 1-9 employees –Represents almost 25% of UK Business –Circa 1.4 million businesses within sector Target market generates gross premiums in excess of £1 billion

73 What have we done? We have launched a new brand called We have the fastest, fully transactional web site, targeting the sector –

74 What have we done? We have launched a new brand called We have the fastest, fully transactional web site, targeting the sector – We are now planning launches into Italy and Ireland

75 In conclusion This business has a new business culture where we retain around 93% of our clients We are exposed to the Economic pressures but we have some counter cyclical business We are targetting further organic growth and have some exciting opportunuities –JLTOnline –Partnership Practice We believe that there is opportunity to improve margin

76 Distinctive. Choice. UK Employee Benefits Group Duncan Howorth CEO

77 Agenda UK Employee Benefits Group – a brief overview Market trends – Defined Benefits Market trends – Defined Contribution BenPal – The future for management of employee benefits programmes

78 The Employee Benefits business has increased revenues by 72% since It makes a very significant contribution to the Groups financial results and contributes 16% of the Groups turnover % 5% 10% 15% 20% Turnover £M Trading margin % 14% 16% 17% £59m £71m£76m 17% £81m £88m 17% UK Employee Benefits – key data

79 UK Employee Benefits – an overview Pension consulting Actuarial consulting Investment Consulting Flexible Benefits Healthcare, Life and Income Protection Annuity purchases Private Clients Defined Benefits Defined Contribution Pension and Annuity payment Flexible Benefits SIPPs and Group SIPPs Independent Trusteeship Risk and control management Data integrity Operational consulting Administration Accounting Web delivery Contribution modelling Flexible Benefits Employee Benefits AdviceOutsourcingGovernanceSystems/Technology

80 Market trends – Defined Benefits Pensions has become a boardroom issue with deficit and liability management and reduction key issues. Schemes close to new joiners Cessation of all accrual Investment strategy Buy out options Longevity hedging The existing DB market comprised 7,400 schemes with assets of £772 billion. Capital to support buy outs is less than 5% of this. Other forms of risk management and transfer will need to form part of long term run off. Aggregate deficit of FTSE 250 stood at £50 31 st March 2009 according to research conducted by Pension Capital Strategies, a JLT Company. But the true number may be nearer £200bn when bond spreads return to more normal levels.

81 Market trends – Defined Contribution Scheme structure and management cost. Internal promotion Investment options Auto enrolment and Personal Accounts Governance frameworks Member education Charges Investment options Auto enrolment Increased delivery Member advice Investment structures Communication strategies. Employer focusRegulator focusMarket solutions After the initial establishment of DC schemes in response to Defined Benefit closure, attention is now turning to long term development of these schemes

82 Distinctive. Choice. Online Benefits Jim Carlton MD

83 SINGLE DATABASE SINGLE ADMINISTRATION PLATFORM UK Risk UK Health UK Pension Pension Modeller Reward Pack Flex Bens Cover Ex-UK Employer Zone Employee Interface Provider Zone

84 Dashboard

85 Funds

86 Dashboard Modeller

87 Dashboard Reward

88 Dashboard Flex

89 Dashboard Mobile

90 Dashboard Employers

91 Why choose BenPal? Reduce costs by outsourcing benefits admin Convert offline Trust DC to online GPP Reduce NI costs with salary sacrifice Empower employees in UK and internationally Reduce costs by rationalising legacy schemes Reduce costs with No-Fee option Aggregate all UK benefits on one platform Improve productivity in HR/Finance/Mgt

92 BenPal and JLT More services to existing clients New clients from different sectors Unique pension/benefits solution Revenue mix of commissions & recurring fees Scale with same headcount Sticky business Empower JLT international offices Alternative to Personal Accounts Technology-only option

93 Deploy key elements of BenPal system Give members a personalised experience Revitalise engagement with existing benefits EMPLOYEE ENGAGEMENT SOFTWARE Company intranet or New pension microsite PENSION PLAN Online Enrolment Fund Valuations Automated Messaging PENSION MODELLER Interactive Tool Pre-populated Data DB/DC/Contract Plans

94 Deployment across JLT R&HPension R&HPension R&H Admin Reward Flex RewardFlex

95 Personal Account from 2012 ONLINE AUTO ENROLMENT MEMBER CHARGE (AMC) 0.5% (est) 0.35%- 0.85% TYPE OF SCHEME Generic plan Largest ever Trust scheme Customised plan Fits each company profile SALARY SACRIFICE INTEGRATED BENEFITS A COST AN INVESTMENT PERSONAL ACCOUNT

96 Distinctive. Choice. Internationalisation of Employee Benefits William Nabarro International Chairman, EB

97 Developing Employee Benefits Internationally The Approach Actions: this year.... Actions:....and next Measures of success

98 Developing Employee Benefits Internationally The Approach Adding value through collaboration Without complicating the management structure Progressing through projects

99 Developing Employee Benefits Internationally Actions; this year.... Clarify what we have Engage all EB professionals Create marketing and internal communications networks Convert the immediate wins Utilise the BenPal investment

100 Developing Employee Benefits Internationally Actions;.....and next Global network serving multi-national clients Integrated international healthcare offering Sharing facilities Review segmental accounting

101 Developing Employee Benefits Internationally Measures of success Marketplace standing Top line benefit Efficiency and quality of delivery More broadly based, integrated business

102 20 th May JLT Investor Seminar James Gerry, Thistle Underwriters

103 Principal aims Portfolio Underwriting Change the Business Model

104 A tangible difference MGAs - What went wrong? MGU - End-to-end service - Profit-driven remuneration model - Front edge systems - Data capture & utilisation

105 Defining the opportunity UK start; global ambitions JLT's embedded business Non-JLT brokers Target client base is growing Acquisitions

106 Distinctive. Choice. JLT Investor Seminar A Sustainable Growth Story

Download ppt "Distinctive. Choice. JLT Investor Seminar Introduction Dominic Burke, CEO."

Similar presentations

Ads by Google