JLT sets aside £100m fund for Midlands acquisitions

Broker Jardine Lloyd Thompson (JLT) is understood to have set aside £100m to spend on acquisitions.

The fund will allow JLT to take advantage of expected consolidation in the broker market.

It follows its unsuccessful attempt to buy Birmingham-based broker Perkins Slade in January this year and declaration that it had no plans for an acquisition spree.

A senior broking source said JLT is still interested in expanding its presence in the Midlands.

"They would be looking at large independent brokers, which would fit well with their appetite for corporate business."

The source identified Leicester-based broker Bland Bankart as one possible target.

A JLT spokesman said: "The company usually has a number of proposals under review at any time and an announcement would be made at the appropriate time.

"Any such acquisition would be designed to strengthen core business areas where the group has or can develop market leadership."

JLT is one of the largest listed brokers on the London stock exchange. It has offices in over 30 countries and employs more than 4,000 staff.

It was rated fifth in the Insurance Times Top 50 brokers in 2002.

In its 2002 results the group showed an 11% increase in turnover to £388.1m. This produced a 39% increase in trading profit to £79.1m.

Its share price stood at 600p on Tuesday.