UK - Insurer and employee benefits consultancy firm Jardine Lloyd Thompson saw an unexpected fall in its pension review business in the second half of 2002, though it still sees excellent prospects for its employee benefits arm as a whole in 2003.

“Strong underlying growth in our core business of actuarial, consulting and pension administration was masked by an unexpectedly fast fall off in pension review business in the second half of the year,” JLT said in statement accompanying its 2002 earnings report.

“The pensions review business has reduced significantly over the past two years as this revenue stream had a limited life.”

Revenue at its employee benefits arm – comprising pension administration, outsourcing, employee benefits consultancy and US group marketing - was flat at 74.5 million pounds (109.7 million euros) . “Revenue from new long-term contracts won in 2002 have started to flow through and will benefit the results from 2003.”

“We continue to see excellent potential for future growth in this area,” said JLT. The unit is characterised by long contracts and is “not subject to insurance market cycles”.

The company reported overall 2002 pre-tax profit – before exceptional items - of 101.8 million pounds on turnover that rose 11% to 388.1 million. The rise in turnover reflected “strong organic growth and new business development in continuing hard market conditions”.

“We enter 2003 with real confidence and anticipate another year of excellent progress for JLT,” said chief executive Steve McGill.