Jardine Lloyd Announces Merger of JLT Specialty and Lloyd & Partners

The expansion plan is expected to result in a net investment of approximately 50 million pounds during the period 2015 to 2017. This figure takes account of the costs of building out the business offset by revenues which are expected to build more slowly.

The firm anticipates that the majority of this investment will be made in the first two years of the period and that the business will start to contribute to profits in 2018 and then generate an accelerated return thereafter.

The company stated that it has appointed Michael Rice CEO and Pat Donnelly President and Deputy CEO of JLT Specialty Insurance Services Inc., subject to them fulfilling their existing contractual obligations.

Mark Drummond Brady, Deputy Group CEO of JLT, and Jonathan Palmer-Brown, a member of the JLT Group Executive Committee, will become members of the US Executive team. The company also intends to appoint a new Non-Executive Director with specific knowledge and experience of the US insurance market to the JLT Group plc Board.

The merger of JLT Specialty and Lloyd & Partners will create a single specialty business of scale and distinctive capability.

Subject to the appropriate regulatory approvals, John Lloyd, the current CEO of Lloyd & Partners, is appointed CEO of JLT Specialty with Adrian Girling, the current Chairman of JLT Specialty, being appointed Chairman of Lloyd & Partners. The merger will take effect for reporting purposes from 1st January 2015, at which point John Lloyd and Adrian Girling will become CEO and Chairman respectively of the combined business which will trade as JLT Specialty.

The Lloyd & Partners brand will be retained to service and develop the Group's independent wholesale client base. JLT is firmly committed to serving the needs of its independent wholesale clients.

There is limited overlap between the two businesses. More details will be provided on the anticipated one-off integration costs and associated savings at the time of our preliminary results in March 2015.

Separately, Jardine Lloyd Thompson Group announced a series of senior management appointments. These appointments are being made in the context of today's announcement of the significant expansion of its US specialty capabilities and the merger of JLT Specialty Ltd. and Lloyd & Partners Ltd.

Mark Drummond Brady is appointed Deputy Group CEO with immediate effect. In addition Mark will sit on the Executive Committee of our new US specialty operation and the Board of the merged JLT Specialty / Lloyd & Partners business. This will ensure strong alignment and collaboration between our US and London-based specialty operations and reflects the increasing importance of the US to the JLT Group following last year's acquisition of Towers Watson Re.

Mike Reynolds is appointed global CEO of JLT Towers Re with immediate effect. Ross Howard remains as Chairman with Alistair Lockhart-Smith continuing in his role as Deputy Chairman of the global business.

Mike is extremely well qualified to take on the role of global CEO of JLT Towers Re having held senior roles in a major reinsurance broker and global reinsurer and worked in London, the USA and Bermuda prior to joining JLT. Mike retains his position as Group Finance Director and as a PLC Board Director until the appointment of his successor.

Following today's announcement of our intention to merge JLT Specialty and Lloyd & Partners, Martin Hiller is appointed CEO of EMEA and assumes responsibility for our MGA businesses and Thistle Insurance Services