The stronger UK currency has resulted in a 6% rise in first-half profit for JLT Australia/New Zealand being translated into an 11% drop for the division in the London-based parent’s latest report.

The Australia/New Zealand trading profit was £22.6 million ($40.87 million) for the six months to June 30.

The division’s total revenue increased 7% at constant rates of exchange, but when converted to sterling it becomes a 10% fall to £64.5 million ($116.65 million).

JLT Australia CFO Igor Fijan told insuranceNEWS.com.au the local operation has done well in a soft market, reflecting an investment in core specialties.

“The market is the most competitive we have seen it in a long time,” he said.

The parent company reported a 15% increase in total revenue to £559.6 million ($1.01 billion), while profit grew 15% to £73.2 million ($132.38 million) for the half.

CEO Dominic Burke says JLT achieved strong growth in Asia, Latin America and its international employee benefits division.

“We are confident we can deliver year-on-year financial progress, but we are more cautious over the outlook for the remainder of the year given the marked decline in the insurance and reinsurance rating environment over the past quarter and the continued strength of sterling,” he said.

A strong underlying performance from Australia/New Zealand reflects growing benefits from investment in specialty areas “and the continued strength of our public sector business”.

Mr Burke says growth in organic revenue demonstrates the success of focusing on specialty and higher-growth economies.