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Interim Results for the six months ended 30 th June 2010

Interim Results for the six months ended 30 th June 2010. 30 th JULY 2010. 2010 Interims. Organic turnover growth of 6% Market leading growth Employee Benefits Successful integration of HSBC Actuaries & Consultants and iimia Wealth Management acquisitions

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Interim Results for the six months ended 30 th June 2010

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  1. Interim Resultsfor the six months ended 30th June 2010 30th JULY 2010

  2. 2010 Interims • Organic turnover growth of 6% • Market leading growth • Employee Benefits • Successful integration of HSBC Actuaries & Consultants and iimia Wealth Management acquisitions • Business Transformation Programme • On track • Adding power to the JLT international brand • Building the JLT International Network capabilities, international roll-out of specialisms, Thistle, Employee Benefits Continuing investment to maintain strategic momentum

  3. 2010 Interim highlights Six months to June(£M) Growth 2010 2009 Actual CRE Organic Total revenue* 377.8 313.0 21% 13% 6% Underlying trading profit** 70.7 57.8 22% 3% Trading margin 18.7% 18.5% Underlying PBT** 73.6 59.7 23% Reported PBT 70.0 61.3 14% Underlying EPS (diluted)** 23.6p 19.3p 22% Reported EPS (diluted) 27.0p 19.9p 36 % Dividend per share 8.8p 8.5p * Total revenue comprises fees and commissions and Investment Income * * Underlying results exclude exceptional and non-recurring items CRE is constant rates of exchange Organic growth is on fees and commissions excluding acquisitions, disposals and the impact of currency

  4. Total revenue & trading profit Six months to June(£M) Total Revenue Trading Profit Trading Margin 2010 Growth CRE Organic 2010 CRE 2009 2010 CRE 2009 Retail 132.3 24% 11% 9% 32.5 28.9 21.3 25% 24% 20% London Market 164.1 11% 4% 5% 42.7 35.0 36.5 26% 23% 25% Risk & Insurance 296.4 16% 7% 7% 75.2 63.9 57.8 25% 23% 23% EmployeeBenefits 64.8 50% 50% 4% 9.1 9.1 6.2 14% 14% 15% Thistle Insurance Services 16.6 11% 11% - (0.8) (0.8) (0.1) (5%) (5%) (1%) Central Costs - - - - (12.8) (12.8) (6.1) - - - 377.8 21% 13% 6% 70.7 59.4 57.8 19% 17% 18%

  5. Retail Six months to June(£M) Total Revenue Trading Profit Trading Margin 2010 Growth CRE Organic 2010 CRE 2009 2010 CRE 2009 Australasia 56.1 24% 2% 2% 17.5 14.4 12.8 31% 31% 28% Asia 29.7 14% 12% 11% 6.3 6.1 6.2 21% 21% 24% Latin America 19.9 57% 42% 22% 5.7 5.4 2.1 28% 30% 16% Canada 13.9 17% 7% 7% 1.8 1.8 0.7 13% 14% 6% ContinentalEurope 10.4 20% 22% 24% 1.3 1.3 (0.4) 12% 12% (5%) InsuranceManagement 2.3 (4%) (2%) (2%) (0.1) (0.1) (0.1) (4%) (4%) (4%) 132.3 24% 11% 9% 32.5 28.9 21.3 25% 24% 20%

  6. Jardine Lloyd Thompson Limited Six months to June(£M) Total Revenue Trading Profit Trading Margin 2010 Growth CRE Organic 2010 CRE 2009 2010 CRE 2009 Jardine LloydThompson Ltd 89.6 10% 4% 6% 24.2 20.5 20.6 27% 24% 25% Lloyd & Partners 34.8 12% 3% 4% 9.4 7.9 7.5 27% 24% 24% JLT Re 39.7 12% 4% 5% 9.1 6.6 8.4 23% 18% 24% 164.1 11% 4% 5% 42.7 35.0 36.5 26% 23% 25%

  7. Lloyd & Partners Six months to June(£M) Total Revenue Trading Profit Trading Margin 2010 Growth CRE Organic 2010 CRE 2009 2010 CRE 2009 Jardine LloydThompson Ltd 89.6 10% 4% 6% 24.2 20.5 20.6 27% 24% 25% Lloyd & Partners 34.8 12% 3% 4% 9.4 7.9 7.5 27% 24% 24% JLT Re 39.7 12% 4% 5% 9.1 6.6 8.4 23% 18% 24% 164.1 11% 4% 5% 42.7 35.0 36.5 26% 23% 25%

  8. JLT Re Six months to June(£M) Total Revenue Trading Profit Trading Margin 2010 Growth CRE Organic 2010 CRE 2009 2010 CRE 2009 Jardine LloydThompson Ltd 89.6 10% 4% 6% 24.2 20.5 20.6 27% 24% 25% Lloyd & Partners 34.8 12% 3% 4% 9.4 7.9 7.5 27% 24% 24% JLT Re 39.7 12% 4% 5% 9.1 6.6 8.4 23% 18% 24% 164.1 11% 4% 5% 42.7 35.0 36.5 26% 23% 25%

  9. Employee Benefits Six months to June(£M) Trading Profit Total Revenue Trading Margin 2010 Growth Organic 2010 2009 2010 2009 EmployeeBenefits 64.8 50% 4% 9.1 6.2 14% 15%

  10. Thistle is an underwriting and distribution company • Writing small-ticket high-volume business • It is a marketing led organisation focusing on the design, underwriting and distribution of Thistle branded products • It distributes direct, through affinities, via third party brokers and online The Group’s balance sheet is not used to underwrite risk

  11. Total Revenue Trading Profit Trading Margin 2010 Growth 2010 2009 2010 2009 Six months to June(£M) Trading Profit Total Revenue Trading Margin 2010 Growth 2010 2009 2010 2009 Thistle Insurance Services 16.6 11% (0.8) (0.1) (5%) (1%)

  12. Financial Review for the six months ended 30th June 2010 Jim RushGroup Finance Director

  13. Profit and Loss Six months to June(£M) 1H 2010 1H 2009 Change Underlying trading profit 70.7 57.8 12.9 Associates after tax 3.5 2.9 0.6 Net underlying finance costs (0.6) (1.0) 0.4 Underlying PBT 73.6 59.7 13.9 Net exceptional (costs)/gains (3.6) 1.6 (5.2) PBT 70.0 61.3 8.7 Underlying tax expense (20.4) (17.7) (2.7) Non-recurring tax credit 11.0 (0.1) 11.1 Minority interests (2.0) (1.0) (1.0) PAT (after minorities) 58.6 42.5 16.1 Underlying PAT (after minorities) 51.2 41.1 10.1 Diluted EPS 27.0p 19.9p 7.1p Underlying diluted EPS 23.6p 19.3p 4.3p Interim dividend per share 8.8p 8.5p 0.3p

  14. Underlying diluted EPS Six months to June Pence 23.6p + 22% 19.3p + 12% 17.3p + 8% 2008 2009 2010 Interim dividend per share increased to 8.8p in 2010 from 8.5p in 2009

  15. 2009 2010 2011 Actual F’cast F’cast F’cast Cost savings: Additional benefit achieved in the year 3 8 3 Recurring benefit 3 11 14 Exceptional one-off costs: Cost in the year (7) (8) (3) Cumulative cost (7) (15) (18) Business Transformation Programme Twelve months to December (£M) Full Year

  16. Underlying operating cost ratio Six months to June(£M) 2010 2009 Change Fees and commissions 376 100% 310 100% 66 Operating costs: Staff costs 218 58.1% 181 58.4% 37 Premises 20 5.3% 18 5.8% 2 IT costs 13 3.5% 11 3.5% 2 Travel & entertainment 13 3.4% 11 3.6% 2 Other operating costs 43 11.5% 34 11.1% 9 307 81.8% 255 82.4% 52

  17. Underlying operating costs by business Six months to June(£M) 2010 2009 Change Change Actual CRE Actual Actual CRE Retail 100 90 85 15 17% 5 5% London Market 121 119 112 9 9% 7 7% Employee Benefits 56 56 37 19 51% 19 51% Thistle InsuranceServices 17 17 15 2 16% 2 16% Central Costs 13 13 6 7 108% 7 108% 307 295 255 52 20% 40 16%

  18. Breakdown of exceptional and non-recurring items Six months to June(£M) 2010 Net exceptional costs: Business Transformation Programme costs (2.9) Integration of acquisitions (2.7) Other exceptional and non-recurring items 2.0 (3.6) Exceptional and non-recurring tax credits: Tax saving on net exceptional and non-recurring costs 0.7 Tax settlement credit 10.3 11.0

  19. USD/GBP achieved FX rates Six months to June Actual Hedging rates achieved as at 30 June 2010 $1.54 $1.72 Revenue % hedged 85% 85% Average market rates $1.53 $1.59 Revenue % unhedged 15% 15% Actual achieved rates after hedging $1.54 $1.72 Revenue % hedged + unhedged 100% 100% Value of $135m revenue in £M £88m £78m Approx YOY revenue impact in £M £10m

  20. USD/GBP hedging positions Twelve months to December Full Year Projections Actual 2009 2010 2011 2012 Forward rates Average market rates Hedging rates achieved as at 27 July 2010 $1. 72 $1.55 $1.51 $1.53 Revenue % hedged 100% 85% 80% 70% Market forward rates as at 27July 2010 $1.55 $1.55 $1.54 Revenue % unhedged 15% 20% 30% Blended rates after hedging $1.55 $1.52 $1.54 Revenue % hedged + unhedged 100% 100% 100% Actual achieved rates after hedging $1.72 $1.55 $1.52 $1.54 Value of $260M revenue in £M £152m £168m £171m £169m Approx YOY revenue impact in £M £16m £3m (£2m)

  21. Cash flow Six months to June(£M) 2010 2009 Underlying EBITDA 90 73 Less: exceptional items paid (4) - EBITDA 86 73 Net interest & other (4) (12) Net working capital (84) (47) Tax paid (9) (15) Normal capex (14) (10) Acquisitions (8) (10) Dividends paid (28) (25) Foreign exchange 1 (6) Net cash outflow (60) (52)

  22. Balance sheet (£M) 30 June 2010 31 Dec 2009 30 June 2009 Change Change Goodwill and intangibles 267 224 43252 15 Fixed assets 29 25 428 1 Associates and investments 44 42 244 - Net working capital and other 93 32 617 86 Hedging contracts after deferred tax (2) 13 (15)8 (10) Net pension deficit after deferred tax (83) (62) (21) (67) (16) Other deferred net tax assets 14 11 3 9 5 Net debt (102) (61) (41) (42) (60) Net assets260224 36 239 21

  23. Dominic BurkeGroup Chief Executive

  24. Adding power to our international brand

  25. Adding power to our international brand Industry specialisation - a global principle • UK • Australasia • Canada • Asia ‘Creating the world’s leading specialty broker’

  26. Adding power to our international brand • Thistle Insurance Services • Underwriting & distribution of branded, uniform products, targeting high volume, lower value risks. • Broad distribution through affinity marketing, direct, via third party brokers and online. • Thistle originated in the UK and is now being established in Australia, Canada and Asia • ‘Managed locally but collaborating internationally’ • Sharing processes, operating platforms and underwriting procedures and disciplines established in the UK

  27. Adding power to our international brand Internationalisation of Employee Benefits Employee Benefits solutions for multi-national companies

  28. Adding power to our international brand

  29. The JLT International Network

  30. Market Update • The general property and casualty market remains very soft with excess capacity continuing to chase market share. • The exception being off-shore energy market which is seeing increases of 10% to 50%.

  31. Outlook “ Trading activity in the first half of 2010 continued to be encouraging and this, coupled with the increasing benefits from the broad range of investments being made, comprising key hires, acquisitions and systems developments, gives us the confidence that we will continue to make financial progress for the full year. “ The momentum at JLT is continuing to build

  32. Interim Resultsfor the six months ended 30th June 2010 30th July 2010

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