Costs consists of £12m for the restructuring of its UK and Ireland employee benefits division and £22m to settle its legal dispute with Willis
Jardine Lloyd Thompson (JLT) expects that the restructuring of its employee benefits arm and the settlement of its legal dispute with Willis will result in one-off costs of £34m in 2016.
The broker has said that the restructuring of its UK and Ireland employee benefits division which is expected to result in £12m of exceptional costs is expected to be completed in the second half of this year.
JLT could shed around 10% of its UK and Ireland employee benefits staff, after revenues and profit were hit by government-led changes to the pensions industry.
The division employed 1,700 people at the end of 2015, meaning that roughly 170 jobs could go.
The restructuring is expected to produce £14m of annual cost savings.
JLT has previously announced that it will pay £22m to settle its legal dispute with Willis.
But the broker remains upbeat on its trading performance despite the difficult trading environment.
JLT said: “The group made a good start to the year in the overall trading performance of both our insurance and reinsurance businesses. This was despite external challenges that contributed to a difficult trading environment, including insurance and reinsurance rating pressure, lacklustre economic growth, and weak energy and commodity prices.
“Our US Specialty build-out continued to gain strength and the number of professionals employed in the business grew in line with our plans.
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