Rates unlikely to rise soon, says JLT
Rates are unlikely to increase in the immediate future, JLT Group CEO Dominic Burke has told shareholders in London.
The prediction came as the group revealed its annual profit and announced a two-year business transformation plan that aims to save £12 million ($17.64 million) annually.
JLT Australia CEO Leo Demer told insuranceNEWS.com.au he agrees with the rates assessment, but says the Australian experience is “patchy” and insurers have made increases in a few areas.
The global transformation plan will have little impact on JLT’s Australian operations because “we already have an offshoring capability”, Mr Demer says.
JLT Group says revenues from risk and insurance in Australia and New Zealand grew 5% – or 4% at constant exchange rates – with organic growth of 4%.
Local retail activities have been realigned along specialty lines over the past two years and the public sector business continues to provide solid results.
JLT Australia hired several senior executives last year from rivals Aon and Marsh.
“In Australia we have just enlarged our specialty capability in the country, a move that has been the talk of the market and that has already seen us pick up tender requests we would previously not have been considered for,” the group financial report says.
The Australian employee benefits arm increased total revenue by 12% to £5.1 million ($7.5 million) after transforming its business processes and reporting a series of client wins.
JLT says seven major insurers have signed up to its international employee benefits program BenPal.