JLT’s risk and insurance operations in Australia and New Zealand made a £36.1 million ($64.2 million) net profit last year, up from £34.1 million ($60.7 million) in 2016.

Revenue increased to £125.7 million ($223.6 million) from £117.7 million ($209.4 million) but declined 2% on an organic basis.

“It is anticipated that earnings from a number of significant business wins [last year] will help these businesses return to organic revenue growth [this year],” the London-listed broker says.

The employee benefits business in Australia and New Zealand grew revenue by 9% to £30.1 million ($53.5 million). JLT says structural changes in the workers’ compensation market slowed revenue growth, but it expects better results this year.

Group net profit rose to £118.4 million ($210.6 million) from £81.5 million ($144 million), while revenue grew to £1.39 billion ($2.47 billion) from £1.26 billion ($2.24 billion).

Risk and insurance revenue improved 11% to £1.07 billion ($1.9 billion) and employee benefits income climbed 7% to £320.2 million ($569.5 million).

“JLT has entered [this year] with real momentum, but we do not expect a consistently hard insurance market,” the company says. “While the group is positive with regards to the factors within its control, volatile currency markets present a risk.”

The broker has announced its businesses will be structured into three divisions – reinsurance, specialty and employee benefits – from the second quarter and financial results will be reported on this basis.

It says the new structure will facilitate closer co-ordination and improve customer outcomes.

JLT will embark on a group-wide transformation program that is expected to deliver a £40 million ($71.1 million) cut in operating costs by the end of the 2020 financial year.