Jardine Lloyd Thompson Group P.L.C. Group Chief Executive Dominic Burke expects revenue growth this year as the London-based brokerage continues to build its specialty, reinsurance and employee benefits businesses despite a challenging environment.

JLT saw gross revenues rise 11.3% to £620.1 million ($971.1 million) and its brokerage revenues increase 14.3% to £611.7 million ($958 million) in 2009 compared with 2008.

“We have grown the business against the fierce head winds of a soft insurance market, a global economic downturn and considerably reduced investment income from lower interest rates,” Mr. Burke said.

“And in April we reported that we were seeing encouraging levels of organic growth again in 2010,” he said in noting that organic growth will continue to define JLT's plans to grow the business.

However, the pound's weakness against the U.S. dollar in 2009 compared with 2008 turned a solid gain in pounds into a slight decline when converted to dollars.

JLT made several significant acquisitions during the past year, including HSBC Actuaries & Consultants Ltd. in December and iimia Wealth Management in January, both to bolster its employee benefits offering.

“We have completed 25 acquisitions at a cost of nearly £100 million since the beginning of 2007 and this is a trend that I see continuing,” Mr. Burke said of the brokerage ranked No. 8 in Business Insurance's 2010 rankings of the world's largest brokers. “Acquisitions for JLT are only made to improve our competitiveness in the territories in which we trade and disciplines in which we specialize.”

JLT is in a more financially healthy state than many of its rivals, carrying relatively low levels of debt with revenues growing faster than expenses, said Eamonn Flanagan, head of the Liverpool, England, office at Shore Capital Group Ltd.

JLT also has grown its business through recruitment, with notable hires in aviation, financial lines, marine, reinsurance and benefits.

The main sources of revenue growth were from the London market and retail insurance businesses, which saw 2009 revenues increase by £39.1 ($61.2 million) million to £250.4 million ($392.1 million) and by £32.3 million ($50.6 million) to £269.5 million ($422.1 million), respectively.

“Last year was really about our London-market businesses where we saw substantial improvements in performance in our specialty, wholesale and reinsurance operations,” said Mr. Burke.

JLT continues to build its reinsurance broking business: JLT Reinsurance Brokers Ltd. posted a 12% rise in reinsurance revenues in 2009 at £53.5 million ($83.8 million). JLT Re launched Jan. 1, 2006, adding the acquired reinsurance business of Harman Wicks & Swayne Ltd. in June 2008.

JLT also has been building its aerospace broking business, which is part of JLT Re, and made some key appointments in 2009.

Jardine Lloyd Thompson Ltd., the broker's specialty and large-account corporate business, posted revenue growth of 14%, rising to £131.5 million.

“As an independent specialty broker focused on providing bespoke service, JLT Ltd. is proving an attractive proposition for major corporates, evidenced by the degree of success we have had in winning new global clients,” Mr. Burke said. “We have had success right across our specialty areas from construction, real estate, energy and marine, life sciences, through to financial risks and telecommunications.”

JLT's stance against contingent commissions also is part of the broker's offering, said Mr. Burke. Incentive commissions paid by insurers in 2009 amounted to £6.9 million ($10.8 million), less than 1% of the group's revenue. The commissions were for “facilities with longstanding partners” and relate to “small binder fees,” he said.

JLT has a “complete transparency” policy on revenue with clients and would like to see a level playing field on contingent commissions. “We believe that some brokers are taking a backwards step toward accepting contingent commissions again, but we question how such commissions can possibly square with transparency and a broker's duty of care to its clients,” Mr. Burke said.

Another differentiator for JLT is that it operates a network of partner brokers that can service the overseas subsidiaries of clients in 130 countries.

“We have great aspirations for JLT Network as a conduit to service our multinational clients, for insurance broking, employee benefits, and as a distribution channel for our specialist, wholesale and reinsurance businesses,” said Mr. Burke. Developing international partners “is an area where we expect to make some interesting moves.”

The broker withdrew from the U.S. retail market in 2006, but continues to operate in the wholesale market. “JLT has no retail representation in the U.S. and I see no circumstances where we would return. Today, we are winning market share in the U.S. working hand in hand with U.S. independents,” he said.

One area where 2009 growth was “disappointing” was JLT's U.K. employee benefits business as clients' discretionary spending declined. “This year has started with encouraging signs that employee benefits is returning to normal and we are busy consulting with clients on pension schemes and employee benefits as they move away from providing defined benefits,” Mr. Burke said.

In addition to acquisitions, JLT launched BenPal, its online employee benefits management system that he said already has added about 30 new clients.

The broker also has been developing its international employee benefits offering for multinational clients in Asia, Australasia and Latin America.

Overall, revenue growth was particularly strong in Asia and Latin America where JLT has been winning new business, said Mr. Burke.

Revenues from Asia grew 25% to £50.9 million ($79.7 million) in 2009, driven mainly by the expansion of JLT's employee benefits businesses and recruitment in aviation, energy and construction.

Latin American revenues grew to £28.5 million ($44.6 million, with strong growth in construction, energy and employee benefits business, and from Brazil, where JLT made several new appointments in its retail and reinsurance businesses.

Strong organic growth helped JLT increase its aftertax group profit by 13% to £73.3 million ($114.8 million) in 2009. The profit also reflected “effective cost controls” that were achieved without the need to reduce head count, said Mr. Burke.

JLT stock closed July 9 at £5.55 a share. Its 52-week high was £6.04 and its 52-week low was £3.99.