JLT’s organic growth in 2012 has yet again exceeded its rivals’
There was a familiar sense of déjà vu this morning when JLT reported its annual results.
Once again, the global broker’s full-year figures have revealed how its consistent performance has outperformed its closest rivals, including Aon, Marsh, Willis and Arthur J Gallagher.
The headline figure was JLT’s 7% organic growth in 2012, a repeat of its previous result a year earlier.
But how has JLT done it again?
Latin America and Asia fuel growth
The broker is putting its latest outperformance down to focusing on its specialty business, and particularly in emerging markets. The results revealed that the biggest rates of organic growth were seen in Latin America (22%) and Asia (13%).
JLT’s annual report revealed encouraging signs for the regions. It said: “Our Asian revenues again benefited from the relatively higher levels of economic growth in that region. Total revenue increased by 16%, or 15% at CRE [constant rates of exchange], with organic growth of 13%, reflecting a number of high-profile client wins, which demonstrate the increasing success of our Asian specialty capabilities.”
JLT said it was seeing significant opportunities to improve the performance of its Asian business by “better leveraging our market position, improving the efficiency of the operating model and taking further advantage of Jardine Matheson’s strong presence in the region”.
The Chile connection
On Latin America, JLT stated: “Our Latin American operations again performed well, with revenues increasing by 32% or 36% at CRE. This increase reflects 22% organic growth, 13% from acquisitions – this being the first full-year contribution from Orbital-JLT in Chile – and the combined impact of foreign exchange rates and investment income (-3%).”
In the region, JLT said it had benefited from its focus on specialty lines, including construction, energy and mining, which are aligned with infrastructure investment and demographic growth in the region. “We have also continued to invest in leading industry professionals in the region,” it added.
JLT also said it saw “significant opportunities for growth” in its Australia and New Zealand business, which posted 4% organic growth.
Finally, how does JLT’s 2012 organic growth compare to its rivals’?
| Organic growth (%) | |
|---|---|
| JLT | 7.0 |
| Aon | 4.0 |
| MMC | 5.0 |
| Willis | 3.1 |
| Arthur J Gallagher | 4.4 |
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