JLT says its core businesses are trading strongly after first-half earnings took a hit from costs associated with a global transformation program announced in February.

All three divisions – specialty, reinsurance and employee benefits – achieved organic revenue growth of 4-6% in the six months to June.

JLT split its business into the three units as part of the revamp.

“The strategic initiatives we are implementing are already generating tangible benefits for our clients and for the group,” Group CEO Dominic Burke said. 

“We are trading with real momentum as we move into the second half and we expect to report continued strong organic revenue growth and further financial progress for the full year.” 

Overall pre-tax profit fell 9.1% to £89.4 million ($158.8 million) and net profit declined 11.5% to £59.5 million ($105.7 million). Revenue grew 3% to £713.5 million ($1.27 billion).

Net exceptional items cost JLT £19.4 million ($34.5 million), which includes £17 million ($30.2 million) in expenses implementing the transformation program.

Specialty revenue increased 4% to £408.3 million ($726 million) and reinsurance revenue grew by the same margin to £152.8 million ($271.4 million). Employee benefits revenue was flat at £152.4 million ($270.7 million) but grew 4% on an organic basis.