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JLT Investor Seminar

JLT Investor Seminar. Introduction Dominic Burke, CEO. JLT Reinsurance Brokers Limited. Alan Griffin Chairman & CEO. JLT Reinsurance Brokers Ltd. Jardine Lloyd Thompson Group. Risk & Insurance. Employee Benefits. London Market. Retail. Jardine Lloyd Thompson Ltd Specialty.

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JLT Investor Seminar

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  1. JLT Investor Seminar Introduction Dominic Burke, CEO

  2. JLT Reinsurance Brokers Limited Alan GriffinChairman & CEO

  3. JLT Reinsurance Brokers Ltd Jardine Lloyd Thompson Group Risk & Insurance Employee Benefits London Market Retail Jardine Lloyd Thompson Ltd Specialty Lloyd & Partners Wholesale JLT RE Reinsurance/ Aerospace Europe Australia & NZ Asia Latin America Canada Insurance Management JLT RE JLT AEROSPACE May 2009

  4. Where we are today… JLT Reinsurance Brokers Limited (300) JLT Re (205) Business Research (20) JLT Aerospace (75) Europe (128) North America (55) Bermuda (2) Asia (20) UK (58) North America (17) Including staff numbers

  5. Staff numbers 2006 2007 2008 Re 164 178 225 Aero 89 80 75 253 258 300

  6. Revenue(£’000s) 2006 2007 2008 Re 31,462 29,515 33,206 Aero 15,982 14,524 15,627 47,444 44,038 48,834 Trading profit and trading margin 2006 2007 2008 Re 2,755 8.8% 3,106 10.5% 4,218 12.7% Aero 1,230 7.7% 1,521 10.5% 2,874 18.4% 3,985 8.4% 4,627 10.5% 7,092 14.5%

  7. JLT Re

  8. JLT Re 2006 Portfolio Non-Marine (24%) Marine (61%) Aviation (15%) Estimated Global Market Marine (4%) Aviation (2%) Non-Marine (94%) JLT Re Started Life as… • A medium-size broking team imbedded in an insurance broking operation • No recognised reinsurance brand • Portfolio dominated by marine and energy business • Lack of analytical and risk modelling capabilities • Essentially, a London-based operation

  9. JLT Re Strategic Plan 2006 – 2010 • Focus on risk and capital management, not just reinsurance/risk transfer • Balanced business mix reflecting market opportunities • International brand • Single, client-centred global entity • Effective international network with “centres of excellence” in key markets • Efficient business processes – a 21st century operation • Innovative advisory services and thought leadership

  10. To date we have : • Made a significant investment in analytical expertise • Established a presence in USA/Bermuda • Established Non-Marine Treaty practice in London through hires and acquisition of HWS We continue to: • Hire individuals/teams • Consider acquisitions

  11. Estimated Global Market Marine (4%) Aviation (2%) 2008 Non-Marine (94%) 33% 53% Marine 49% 40% 14% Aviation 11% Non-Marine JLT Re Business Mix 2006 24% 61% 15% 2007

  12. JLT Aerospace

  13. JLT Aerospace • Acknowledged number 4 Broker in Class • Blue Chip client list

  14. JLT Aerospace Clients

  15. JLT Aerospace • Acknowledged number 4 Broker in Class • Blue Chip client list • Opportunities for growth : • Asia • USA • 2nd and 3rd tier operators, general aviation

  16. Today JLT Re & JLT Aerospace Providing a real alternativeto clients.

  17. Lloyd & Partners John Lloyd Chairman & CEO

  18. What is Lloyd & Partners? • Wholesale brokerage firm providing specialised transactional / service solutions for independent brokers, worldwide but particularly in the USA and JLT retail operations, worldwide but particularly in Australasia / Canada and South America. • Operating from London and Bermuda (JLT Park) • 240 Staff: • London: 210 • Bermuda: 30

  19. Key Disciplines: • Energy & Marine • Cargo, Fine Art & Specie • Property • Casualty, Healthcare & Professional Lines Casualty, Healthcare & Professional lines 26% Property 22% Energy & Marine 30% Cargo, Fine Art & Specie 22%

  20. Achievement in last two years: Acquisition of Park Ltd in Bermuda to create more complete product offerings – Casualty, Financial Lines & Property. Strengthening Property capability with particular focus on mining industry. (3 hires) Creation of Fine, Art & Specie capability to add diversification to Cargo offering. (3 hires) Creation of facultative R/I capability to Energy team to create better value on premium handled. (3 hires) Acquisition of Craven & Partners to broaden Marine and Onshore Energy capability and more Cargo resource. (15 hires) Expansion of Property programme team to enhance capability. (2 hires, to date) “A sustainable growth story”

  21. “A sustainable growth story” 2007 2008 Revenue: £41.2 million Revenue: £47.1 million Trading Margin: 17% Trading Margin: 17% Goal is continued double digit top line growth and improved trading margin.

  22. Jardine Lloyd Thompson Ltd Martin Hiller CEO

  23. JLTL Business Mix • Marine Oil & Gas (25%) • Natural Resources (12.5%) • Construction (25%) • Financial Risks (17.5%) • GRS - Life Sciences, Telecoms & major accounts (10%) • GCube (10%)

  24. 2006 2008 2008 Actual Actual @ 06 ROE’s Turnover £106.3m £119.0m £116.0m Trading Profit £8.0m £19.5m £16.5m

  25. Revenue Growth Initiatives • New business • Facilities and higher commissions • Segment development / diversification • Investments

  26. Construction Latam US Infrastructure European contractors GRS Clinical trials Global support Non damage BI Oil & Gas Renewable Energy International E&P Offshore Construction Financial Risks Lawyers PI Residual Value Sport Natural Resources US Casualty Latam Renewable Energy Marine P&I Special Risks Power Barges Segment Development / Diversification

  27. 2008 Real Estate Core Risks Middle East &North Africa Retail Power Transportation/Utilities Future GCube Claims/Echelon PI, E&O & D&O GRS – Major Accounts Further Bolt-ons Investments

  28. JLT Asia Pacific Brian Carpenter Chairman

  29. Asia Trading Performance ₤ 2008: Revenue 40,608 +22.32% Trading Profit 8,092 +16.40% PBIT 8,384 +12.60% 4 Year Average Ratio 2005/08 Trading Ratio 20.17% PBIT/Revenue 21.50%

  30. JLT Asia • Historically major P&C activities • 2008 review, introduction of specialties under matrix structure • Objectives • Grow business organically and through bolt-on acquisitions • Reduce volatility • Focus on emerging wealth of Asia • Focus on products and services to the mass populations and small to mid-corporates

  31. Private Client Services Affinity SME Personal Lines Financial Institutions Aviation Capital and Political Risks Energy Construction Employee Benefits Opportunities for JLT in Asia Creation/Enhancement of specialist teams that focus on the Asian growth drivers

  32. Affinity • Short-term • Mixture of challenge and opportunity in the short-term • Long-term • Growth opportunities within certain business lines • Delivering insurance products efficiently and effectively at points of sale to support consumer purchases • Opportunities • Insurance products to support motor vehicle sales and service (China automobile market; Indonesia motorcycle market; extended warranty) • China crop insurance • Personal Accident & Health

  33. Aviation • Expect significant increase in aircraft deliveries to Asia over next 20 years • Asia is a leader in new aircraft orders • Aviation risks are transferred to insurance market – no self insurance • JLT building regional capabilities to focus on aviation and ancillary insurance

  34. Energy • Direct link between energy demand and population/economic growth • Growth in energy demand and power generation in Asia: 6.9% CAGR in power generation forecast through 2018* • Plans in place to develop high net worth energy products • Asia upstream energy projects: 75 upstream projects with total value of USD104bn in next 5 years** *Source: BMI China Power Report Q1 2009 **Source: Energy Industries Council (EIC)

  35. Employee Benefits • Retirement consulting, administration and products • Ageing population low birth rates • Normal retirement age increasing • Trend away from DB to DC plans • Increasingly complex benefits structures • Healthcare • Rising medical care costs; increase in “lifestyle” diseases • Ageing populations, health risks, new technologies, pharmaceuticals, consumer demand • Government sponsored plans on the rise • Growing interest from employers in managing EB programs effectively and economically

  36. Australian Trading Performance 2008: $A Revenue: 160,155 +9.7% Trading Profit: 39,136 +3.8% PBIT: 47,704 +5.1% 2005/08Trading RatioPBIT/Revenue JLT 25.75% 30.95% Marsh 11.95% 18.35% 2005/07 Aon 22.00% 29.40% Willis 20.63% 25.26%

  37. Approximately 60% of PBIT is derived from non-transactional clients Government Instrumentalities Provide insurance/risk management services to over 90% of Australian local councils Administration of self-insured funds State and Federal entities Echelon Consultants Claims management Enterprise risk management Environmental risk management OHS/rehabilitation services Loss adjusting Strong Business Base

  38. Strong Business Base • Affinity • Group schemes for sporting organisations, trade associations and common interest groups • Developing opportunities with Trade Unions • Management of discretionary trusts • Employee benefits: life/health care

  39. General Broking - Segments • Corporate: • National new business structure • Recruitment of high profile executives • Culture transformation from transactional to business advisor • Investment in risk modelling software • Natural Resources and Construction • New business team employed • Broader set of skills introduced to existing/new clients

  40. General Broking - Segments SME: Business re-engineering Delivery channels National centralisation JLT Online opportunities Regional Network: Expansion of offices in Townsville New offices in Darwin/Gold Coast

  41. Asia Pacific Summary • Re-engineering existing key segments • Identified new products/segments • Recruiting specialists from Brokers/Underwriters • Investing in training/education • Minimizing cost base • Seeking acquisitions

  42. International Flows Mark Drummond Brady International Chairman, Risk & Insurance

  43. International Chairman’s Role • Breaking down barriers – internal and withThe Market • Developing collaboration throughout the Group • Managing and developing our Global Network • Expanding distribution and Global Flows • Promoting and defending the JLT brand globally

  44. International Collaboration - Brazil • Early identification of seismic market shift • Selection of local partner / formation of JLT Re • Education of Markets / Lloyd’s obtains reinsurance licence • Flows emanate from local retail operations to local reinsurance office, to London and international markets • Flows emanate from all over JLT Network™ to Brazil

  45. JLT Network™ • Retail network – we also have Wholesale, Reinsurance and Specialist businesses around the world • Owned offices: more than 100, in 36 countries • Network partners in 120 countries • Global Support Unit in London • Network Managing Director

  46. US Broker Sales Initiative • JLT has long been a Champion for the independent sector • London, Bermuda and International Markets for Wholesale and Surplus Lines • The Network is a USP for JLT with brokers with international or multi-national clients • Sales drive operates at all levels of the Group • 35% increase in sales in ’08, over ‘07

  47. JLT Investor Seminar A Sustainable Growth Story

  48. JLT Latin America Vyvienne Wade CEO

  49. What is JLT Latin America? • Why is Latin America important to JLT?

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