UK insurance broker Jardine Lloyd Thompson (JLT) has seen profits fall by 9% as it struggles against a competitive market and falling fees.

JLT said that it had expected 2005 to be a challenging year and that was how it turned out, with profits of GBP76.8 million, around GBP19.4 million less than the prior year.

The company said the fall was principally attributable to two factors. The first was the impact of currency transactions, the effect of which was to reduce profits before tax by GBP9.3 million.

Secondly, the company blamed reduced earnings from Market or Placement Service Agreements (PSAs). It also made note of the competitive insurance market conditions and their impact on its insurance broking businesses.