Global insurance broker JLT Group has taken a share price hit after warning of a drop in profits across its reinsurance business and European-based Thistle Insurance Services.

JLT has been one of the industry’s slower performers this year, rising 12% against a wider 22% surge in the FTSE non-life insurance index.

CEO Dominic Burke told an investor seminar in London last week the group has maintained “good levels of organic growth” against a weak insurance rating environment and the “broader economic backdrop” of recession-hit Europe.

“This has been particularly evident in the UK economy, where pressures on consumers and businesses have combined to further impact Thistle’s results,” he said.

Investment in new staff to “capitalise on the clear… opportunity” in emerging reinsurance markets has also sapped JLT Re of resources.

“This – and the fact that… certain large primary insurers decided to retain more risk in certain classes of business as they seek to improve their internal balance sheet management – means we now expect the trading profit for JLT Re will be lower for the full-year 2012 when compared with 2011,” Mr Burke said.