Jardine Lloyd Thompson : Acquisition

JLT acquires stake in Construction Risk Partners in the USA

Jardine Lloyd Thompson Group plc ('JLT'), one of the world's leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services, has acquired a 50.1% stake in Construction Risk Partners LLC ('CRP'), a construction risk and surety specialty insurance broker in the U.S., for a cash consideration of US$50m, subject to the achievement of performance conditions in the 12 month period following completion. The terms of the transaction allow JLT to increase its shareholding to 100% over time.

Highly regarded in the industry, CRP counts many of North America's largest contractors as clients and acts as the broker of choice for over 150 construction clients.

The partnership adds scale, specialist construction capability and market presence for JLT Specialty USA, in line with the Group's strategy to build out its U.S. Specialty business. CRP provides JLT with a platform to accelerate the expansion of its construction business, adding deep capability in the substantial and growing North American market to JLT's global specialty strength in construction. CRP will have access to JLT's global resources to support its continued expansion across the U.S. and introduce JLT's wider specialist insurance products to its clients.

JLT and CRP share a strong strategic and cultural fit as specialist brokers and already work closely together serving a number of JLT's global construction clients. CRP's product specialties align with JLT's global construction capabilities, which have enabled JLT to become the broker to many of the world's contractors and largest construction projects.

CRP has a strong and experienced management team, all of whom will remain with the business, which will trade as Construction Risk Partners, a JLT Group company.

Dominic Burke, JLT Group Chief Executive Officer, said: 'Our partnership with Construction Risk Partners puts us in a strong position in one of the world's most attractive construction growth markets. JLT is already one of the world's leading construction risk brokers and advisors, and this important partnership further strengthens our global capabilities and will provide a significant complement to our growing U.S. Specialty business, which we launched in 2014. The specialty focus and 'client-first' philosophy that JLT and CRP share together create a compelling proposition for our construction clients in the United States and around the world.'

JLT will consolidate CRP's results from completion. The preliminary financial statements of CRP reflect gross assets at completion of US$12.2m. For the year ended 31 December 2016 the adjusted profit before tax was US$6.9m. The acquisition will be financed from JLT's existing cash and debt facilities.

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ENQUIRIES

Paul Dransfield

Group Head of Communications, JLT Group

paul_dransfield@jltgroup.com

+44 (0)20 7528 4933