London-listed broker JLT has unveiled a group restructure and plans for a group-wide global transformation structure alongside the company’s 2017 results announcement.
As of 1 April 2018, the group will be aligned into three divisions - reinsurance, specialty, and employee benefits – in order to “facilitate closer global coordination and enhance client delivery”.
Under the revamped structure, JLT Group CEO Dominic Burke told analysts on a call that based on 2017 revenues of £1.4bn, the split between the divisions is approximately £220mn for reinsurance, £850mn for specialty and £320m for employee benefits.
As announced in January, Lucy Clarke will become global CEO of the group’s specialty business as of 1 April 2018, in line with the structural changes.
JLT said that it believes that bringing its regional insurance broking operations together into an integrated specialty division, with leaders appointed in each of JLT’s principal industry specialities (energy, construction, financial lines, aerospace, marine & cargo and credit & political risks) responsible for globally coordinated sales and delivery to clients, will enable the broker to operate as a combined group of global specialists.
The broker noted that an integrated global management structure already operates effectively and delivers value in its reinsurance division under Mike Reynolds, adding that it is confident that it will realise the same benefits in its global speciality business.
Meanwhile, the firm said that international employee benefits will now also operate as a worldwide business under the leadership of Bala Viswathanan, working closely with global specialty.
JLT also announced that it is implementing a two-year plus group-wide global transformation programme, designed to transform its operational capabilities and to facilitate consistent and systematically coordinated working across the world, as well as eliminating duplication of costs.
JLT said it expects the programme to deliver annualised savings of £40mn by 2020 for a one-off cost of £45mn spread over a two-year period.