ERA acquisition broadens JLT’s local presence

THE South African operations of Jardine Lloyd Thompson (JLT) has acquired 100% of Durban-based brokerage firm, Eikos Risk Applications (ERA), for an undisclosed amount.

The acquisition of ERA, which specialises in marine, transportation and logistics risk consulting, broadens JLT’s presence in SA and enhances its speciality offering in the country. JLT is listed on the London Stock Exchange, and in SA, it provides specialist insurance, reinsurance and employee benefits brokerage services.

The company has had a presence in SA since 2011.

“We bought them (ERA) because of what they can do. We would like to take their expertise and expand in the region (Africa),” JLT SA CEO Andrew Chislett said.

ERA had brokered annual premiums worth about R500m, he said.

“Combining our South African operations creates a business of scale and substance in SA, and provides a platform from which we can promote our speciality into Southern African and indeed further afield,” Hugh Reimers, the MD of Eikos Risk Applications said.

Mr Chislett said the plan was for JLT SA to focus on building its market presence in the country before expanding operations in the rest of Africa.

In sub-Saharan Africa, 80% of the re-insurance premiums were spent in SA, he said.

In 2012, JLT SA entered into an empowerment deal with Thebe Investment Corporation. In the transaction, Thebe bought 20% of JLT SA operations.

JLT SA also sold a further 5% stake to employees.