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JLT sets up securitization joint venture


LONDON—Jardine Lloyd Thompson Group P.L.C. has entered into a joint venture with interdealer broker ICAP P.L.C. to broker insurance-related financial derivatives and securities products.

London-based insurance and reinsurance broker JLT said the company would be owned jointly by itself and ICAP, a London-based intermediary that operates in the wholesale market for over-the-counter derivatives; fixed-income securities; money-market products; foreign exchange; and energy, credit and equity derivatives.

In a statement, Dominic Burke, chief executive officer of JLT, said: "Our clients—both corporates and insurers with risks that they wish to transfer—will benefit substantially from the additional capacity that this new venture will create."

Mr. Burke said that JLT believed that "the types of risk that will be covered by capital from new sources, the mechanisms by which risk will be covered or managed, and the structures and instruments by means of which the capital is subscribed—all these are subject to a process of development that can only accelerate.

Michael Spencer, CEO of ICAP, said in the statement that he expected that derivatives and securities based on insurance risks will be one of "the principal new growth markets of tomorrow."