IAP.L Regulatory News (IAP)

27 Feb 2007 08:20

ICAP PLC27 February 2007 27th February 2007 ICAP and JLT Joint Venture in Insurance ICAP plc ("ICAP") (IAP.L), the world's largest interdealer broker, and JardineLloyd Thompson Group plc ("JLT"), the leading insurance and reinsurance brokinggroup, have agreed to establish a joint venture company owned equally by the twogroups, to operate in areas where the market for insurance, financialderivatives and securities are converging. This joint venture will offer abroking service in these nascent markets as well as seeking to originate andstructure insurance related transactions. Dominic Burke, CEO of JLT, commented "During the past two years there has been asubstantial increase in the use and variety of structures by which investorslooking for different investment characteristics have committed capital directlyto the insurance market. We believe, however, that this development is still inits infancy and that the types of risk that will be covered by capital from newsources, the mechanisms by which risk will be covered or managed and thestructures and instruments by means of which the capital is subscribed - allthese are subject to a process of development that can only accelerate. We aredelighted to be working with ICAP at the centre 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 willcreate". Michael Spencer, CEO of ICAP, said "I anticipate that derivatives and securitiesbased on insurance risks will be one of the principal new growth markets oftomorrow. We have seen over the past decade the emergence of substantial marketsfor derivatives on credit, energy, and transport amongst others. We believeinsurance is next as there is a clear opportunity for improved efficiency inrisk transfer, liquidity, transparency and market access. We are delighted tohave established this joint venture to pool ICAP's knowledge of securities andderivatives with JLT's insurance expertise. This will enable us to originatecompletely new ideas and products for our clients and this market will, Ibelieve, rapidly evolve to create a whole new class of instruments. - ENDS - Contacts: Paul Dransfield 020 7528 4933 Jardine Lloyd Thompson Group plc Mike Sheard 020 7050 7103 ICAP plc Neil Bennett 020 7379 5151 Maitland for ICAP plc Notes to Editors: ICAP plc ICAP is the world's largest interdealer broker with a daily average transactionvolume in excess of $1.5 trillion, more than 60% of which is electronic. TheGroup is active in the wholesale markets in interest rates, credit, energy,foreign exchange, equity derivatives and emerging markets. In June 2006 ICAPacquired EBS, the world's leading provider of FX trading and market datasolutions. ICAP plc was added to the FTSE 100 Index on 30 June 2006. For moreinformation go to www.icap.com Jardine Lloyd Thompson Group Jardine Lloyd Thompson Group plc is a leading risk management adviser andinsurance and reinsurance broker, as well as a major provider of employeebenefit administration services and related consultancy advice. JLT is thelargest European-headquartered company providing these services and is one ofthe largest firms of its type in the world. JLT operates out of more than 100 offices in over 30 countries and employs 5000personnel For further detail refer: www.jltgroup.com This information is provided by RNS The company news service from the London Stock Exchange