Profits were also hit by a greater than expect impact of the effect of the Retail Distribution Review on its commission revenue, an interim statement from the firm issued last week says.
JLT anticipates these factors, which have led to a ‘significant slowdown in project work and new business’, will result in full year revenues in the UK Employee Benefits business reducing by a mid to high single digit percentage on 2014 and trading profit will be between £13m and £15m.
JLT says despite the continued uncertain outlook of the UK occupational pensions market, it nonetheless anticipate some level of revenue growth and an improvement in the trading margin in 2016.
JLT UK Employee Benefit chief executive Duncan Howorth stepped down last month just five months after returning to the post following a stint heading up the firm’s Asia business. He has been succeeded by Bala Viswanathan who was formerly group COO, having joined JLT in 2006.
JLT says the business is focused on continuing to improve its technology platform and enhancing its operational efficiency, which it says are increasingly important under the emerging UK pensions regime.
JLT group chief executive Dominic Burke, says: “While the recent performance of our UK Employee Benefits business is clearly disappointing, we are confident of returning this business to long-term growth.”