Jardine Lloyd Thompson (LON:JLT) , the international group of risk specialists and employee benefits consultants, has moved to bolster its position in the important Latin American market by signing a heads of agreement to acquire an initial 50.1% interest in the share capital of Alta SA. The deal includes an option to acquire a further 25% in 2020. Alta is the holding company of Orbital Corredores de Seguros, the fourth largest insurance broker in Chile, and Alta Re, a reinsurance broker which commenced operations in April 2010. It has been a member of the JLT International Network since 2010. The news added 4.5p to the JLT share price, which was trading at 647p by mid morning.

Alta generated net revenue of US$8.1 million in 2010 and produced a profit before tax of US$3.4 million. It is anticipated that JLT will initially acquire 50.1% of the company from purchasing shares from the management of Alta which is led by CEO, Jose Ignacio Lathrop and chairman Federico Tagle; both of whom will continue in their existing roles after the proposed transaction has been completed. The deal remains subject to contract and any necessary regulatory approvals and is expected to complete during the second half of 2011.

JLT’s Latin America operations was the fastest growing segment of the group’s retail division during 2010, with revenue growth of 44%, or 30% at constant exchange rates, reflecting organic growth of 25%. Overall, it contributed revenues of £41.1 million to a total retail revenue of £270.9 million. JLT’s group revenues grew by 21% to 746.3 million during the year. Announcing its preliminary results in March, JLT said the region was becoming an increasingly important part of its operations and was also producing strong revenue flows to its London Market businesses.

Vyvienne Wade, the CEO of JLT’s Latin American operations, said: “This acquisition continues JLT’s drive to expand its Latin American businesses following a strong performance in 2010. Chile is a well established insurance and employee benefits market and this acquisition will add to our presence in the region where we already have majority owned operations Brazil, Colombia and Peru. It is another step forward in JLT’s strategy of expanding the reach of our core specialisms and increasing our exposure to the world’s faster-growing economies.”

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