By Patience Saghana
Three local insuranceÂ companies that have led the Nigerian National Petroleum Corporationâ€™ Consolidated Policy (NNPC-CIP) have retained the services of JLT Group as coordinator of the nationâ€™s CIP.
The three companies are NICON Insurance Corporation, Leadway Assurance Company and Custodian and Allied Insurance Plc.
Investigations carried out by Vanguard revealed that the Nigerian companies prefer to deal with JLT which is conversant with the NNPC insurance and has been coordinating the insurance of the NNPC-CIP for years.
Some local insurance companies have questioned the use of JLT for eight years as non-competitive sole reinsurance broker whilst they alleged that the foreign broker carted away with the nationâ€™s $53million as its commission
Jardine Lloyd Thompson Reinsurance Brokers (JLT Re) is among the worldâ€™s top ten reinsurance brokers. The others include: Aon Re; Guy Carpenter & Co; Benfield Group; Willis Re; Towers Perrin; Cooper Gay; BMS Group; Gallagher Re and Collins
JLTâ€™s London market operations achieved strong growth in turnover and trading profit. Turnover increased by 19 percent to Â£250.4 million, or 13 percent at CRE, comprising 10 percent organic growth and 3 percent by acquisition. The trading margin was 18 percent compared to 16 percent in 2008.
JLT Reinsurance Brokers had an exceptionally strong year with revenue growth of 30 percent, orÂ 21 percent at CRE, with a further improvement in the trading margin from 15 percent to 17 percent.
Their Aviation and Aerospace expansion has placed them at the forefront of specialist aviation brokers and the non-marine treaty reinsurance business has grown strongly following the successful integration of Harman Wicks & Swayne, acquired in 2008. Turnover increased by 14 percent in 2009 to Â£612.9 million or 8 percent at CRE, comprising 5percent organic growth and 3 percent due to acquisitions.Underlying trading profit increased by 28 percent to Â£97.1 million or 15 percent at CRE to Â£87.5 million.
Mr Dominc Burke, Chief executive of JLT said that the company is in much better shape than it was few yearÂ ago. We have stabilised the business, given it a clear strategy and restructured our London market businesses. Everyone, internally and externally, can now see what JLT’s businesses in London are about, what it is focusing on and what it wishes to achieve.
According to him, â€œI think there is clarity, which had not existed for some time, and as a consequence of that morale is very good. There is a sense that JLT is now on the front foot and we are continuing to recruit some high-profile people.”
JLT Group continues to have strong cash flows from a diversified range of cash generative businesses with cash generated from operations before interest and taxation increasing from Â£74 million to Â£86 million in 2009. The balance sheet is funded predominantly by equity which increased by Â£7 million to Â£239 million in 2009.
Underlying profit before tax and exceptional items was Â£104.8 million representing a 10 percent increase on the prior year. This was achieved notwithstanding a Â£9.4 million decrease in investment income to Â£6.4 million in 2009. Net exceptional costs were Â£2.8 million in 2009 comprising mainly Business Transformation