The risk and insurance arm of JLT Australia and New Zealand has reported an 8% drop in total revenue to £114.1 million ($222.53 million) for last year, mainly due to the lower Australian dollar.

“The underlying performance of the business remains pleasing when set against the continued fierce competition and decline in insurance rates experienced in the region,” CEO Dominic Burke said.

The division's trading profit fell 13% to £32.3 million ($62.99 million) or by 10% at constant rates of exchange.

The global broker’s market-leading Australasian public sector business continued its progress last year, Mr Burke says.

“The investments made in attracting talent to the group’s core specialties such as energy, mining and construction are repositioning JLT to become one of the leading specialty brokers for large corporate buyers in the region.”

He said revenue rose 2% excluding the currency movement.

JLT Australasia’s employee benefits division increased revenue by 1% to £7.7 million ($15.17 million) or by 13% excluding currency movements, and the trading profit jumped 81% to £2 million ($3.94 million).

The business is growing by offering an integrated broking, occupational health and return-to-work service, assisting clients in managing the rising cost of mandatory workers’ compensation and discretionary benefits, says the company.

Its recent acquisition of Recovre increases its scale and ability to provide workplace rehabilitation services for corporate clients and insurers.

JLT Australia CEO Leo Demer says the regional figures are “very good... for a soft market”.

He says little is expected to change due to intense competition.

“There is so much capital in the market for insurance companies at the moment. Underwriting is competitive, so rates remain competitive.”

JLT’s total trading profit before tax grew 3.9% to £159.7 million ($312.87 million) last year, and total global revenue was up 13% to £1.1 billion ($2.14 billion).

“Despite a challenging insurance rating environment, we are confident in JLT’s revenue growth momentum and in our strategy of continuing to invest to deliver sustainable long-term earnings growth,” Mr Burke said.

JLT established a specialty insurance broking business in the US last year, and merged JLT Specialty and Lloyd & Partners, which Mr Burke says will be pivotal in shaping long-term growth.

Eight acquisitions last year cost £63 million ($122.84 million), including Hayward Aviation for £27 million ($52.64 million).

JLT Asia delivered revenue growth of 7% to £71.8 million ($139.96 million), with trading profit up 9% to £11.3 million ($22.02 million).

The Latin America division achieved revenue growth of 9% to £60.7 million ($118.32 million) last year.

JLT USA was formed last August when the group entered the US market as a specialty broker with a focus on energy, construction, financial lines, credit, political and security, and aerospace.

JLT’s London market total revenue, from Thistle UK, fell 5% to £33.2 million ($64.71 million) and trading profit grew 12.5% to £2.7 million ($5.26 million) last year.