JLT: Global economy may limit hardening market
The Australasian retail businesses of international broker Jardine Lloyd Thompson (JLT) have shown a rise of 13.6% to achieve a profit of $40.7 million.
Reporting its preliminary results for the year to December 31, the London-based company says reduced economic activity may take some hardness out of the international insurance market this year.
JLT says 2008 saw fees and commissions up 13% on the previous year, at £536.1 million ($1.18 billion).
A 13.8% dip in after-tax profit, at £63.6 million ($139.9 million) last year, reflected impairment charges.
“The insurance rating environment is mixed,” the company said. “In some areas, such as catastrophe-affected classes, financial lines and aviation, there is some evidence of rates hardening and, generally, primary insurers are becoming resistant to further reductions.
“There is a general expectation that rates may harden progressively during 2009 but increases in gross premium levels may be offset by reduced economic activity, resulting in lower values at risk due to the current global economic environment.”
Reporting its preliminary results for the year to December 31, the London-based company says reduced economic activity may take some hardness out of the international insurance market this year.
JLT says 2008 saw fees and commissions up 13% on the previous year, at £536.1 million ($1.18 billion).
A 13.8% dip in after-tax profit, at £63.6 million ($139.9 million) last year, reflected impairment charges.
“The insurance rating environment is mixed,” the company said. “In some areas, such as catastrophe-affected classes, financial lines and aviation, there is some evidence of rates hardening and, generally, primary insurers are becoming resistant to further reductions.
“There is a general expectation that rates may harden progressively during 2009 but increases in gross premium levels may be offset by reduced economic activity, resulting in lower values at risk due to the current global economic environment.”