Global inter-dealer broker ICAP and Jardine Lloyd Thompson Group, an insurance and reinsurance broking company, have entered into an agreement to establish a 50:50 joint venture company to provide a broking service in markets where insurance, financial derivatives and securities are converging.
<p>Dominic Burke, CEO of Jardine Lloyd Thompson Group (JLT), commented: We are delighted to be working with ICAP at the center of developments in this area. Our clients, both corporates and insurers with risks that they wish to transfer, will benefit substantially from the additional capacity this new venture will create.<br /><br />Michael Spencer, CEO of ICAP, said: I anticipate that derivatives and securities based on insurance risks will be one of the principal new growth markets of tomorrow. We have seen over the past decade the emergence of substantial markets for derivatives on credit, energy, and transport amongst others. We believe insurance is next as there is a clear opportunity for improved efficiency in risk transfer, liquidity, transparency and market access.<br /><br />The financial details for the transaction have not yet been disclosed.</p>