Preliminary Results For The Year Ended 31st December 2002

Financial Highlights

€¢ 11% increase in turnover to £388.1 million, reflecting strong organic growth and new business development in continuing hard market conditions

€¢ 31% increase in trading profit to £79.1 million, reflecting growth and continued control of overheads

€¢ profit before tax, exceptional items and goodwill amortisation up 21% to £101.8 million

€¢ profit before tax up 28% to £100.2 million

€¢ 16% increase in dividend to 18.5p per share, continuing unbroken record of dividend growth

€¢ diluted earnings per share up 33% to 33.8p (2001: 25.5p after restatement for FRS 19)

€¢ 16% increase in diluted earnings per share before exceptional items and goodwill amortisation to 34.7p (2001: 30.0p, prior to restatement for FRS19)

Operational Highlights

€¢ Risk & Insurance - strong revenue growth (16% for continuing operations) and trading margin improvements for every part of this business

€¢ Employee Benefits - good underlying growth in UK/Ireland and promising new business pipelines in UK and US for 2003 and beyond

€¢ Favourable market conditions for both Risk & Insurance and Employee Benefits set to continue

Steve McGill, Chief Executive, commented:

"In 2002 JLT achieved the milestone of exceeding £100 million of profit before tax for the first time in its history with continued double digit growth in turnover, profit and dividend. JLT has also been the best-performing share in the FTSE 350 over the last 5 years with a total shareholder return over that period of 377%*. We have a highly professional and dedicated team, a well-managed business underpinned by a strong balance sheet and substantial net cash resources. We enter 2003 with real confidence and anticipate another year of excellent progress for JLT."

PRELIMINARY STATEMENT

I am very pleased to report that Jardine Lloyd Thompson continued its unbroken record of year on year growth in 2002 with profit before goodwill amortisation, exceptional items and tasation increasing 21% to a record £101.8 million.

Turnover grew by 11% to £388.1 million (2001: £349.7 million) and the Group's trading profit,

defined as turnover less expenses and excluding goodwill amortisation, grew by 31% to £79.1

million (2001: £60.2 million).

These results should be considered both in absolute terms and in the context of the global economic and financial climate. Most major stock markets ended 2002 down for the third year in succession and man of our clients are suffering industry-specific problems, as well as operating in weak global and local economies. Insurers have been significantly affected by the fallout from financial markets; many have raised new capital whilst others now operate withour the surpluses that had been the norm for these companies.

As expected, the hard insurance market continued throughout 2002 and we believe it will continue in this manner for at least the next two years.

The Group's senior executives, led by Steve McGill, who became Chief Executive at the start of 2002, kept the company focused on its core businesses during this difficult time and their success in this regard is detailed in the Operational review. The senior management team worked hard during 2002 to develop and refine the operating strategy and structure of the Group and to grow the business organically.

The Board was augmented by the appointment of three additional independent non-executives in January 2002 and these new colleagues have introduced fresh perspectives on JLT from their considerable and varied business experience.

Operational Review

Group Strategy

At the beginning of the year the Group's operational structure was reorganised into two business groups: Risk & Insurance and Employee Benefits.

The Risk & Insurance Group comprises JLT's worldwide insurance, reinsurance broking and local government activities. During 2002 we have continued working to maximise the potential benefits from synergies within the group together with the ongoing development of new business in each of our chosen sectors including the creation of specific industry focus groups to co-ordinate our skills and resources.

The Employee Benefits Group consists of pension administration, outsourcing, employee benefits consultance and US group marketing activities. This business, which complements our Risk & Insurance activities, is characterised by long-term contracts and is not subject to insurance market cycles. We continue to see excellent potential for future growth inthis area.

Insurance Market Overview

Premiums for most buyers of insurance and reinsurance have been increasing since 2000 and many clients have seen further significant increases in premium through 2001 and 2002. The impact of the September 11th attacks, combined with the need to strengthen reserves to offset the poor underwriting results from the soft insurance market of the late 1990s and falling investment returns, have all taken their toll on insurers' balance sheets. With subdued investment returns appearing unlikely to improve substantially in 2003 and with a challenging outlook for the global economy as a whole, underwriters must focus on underwriting profitably to deliver the funds they need to restore adequate capital levels that provide buyers with the financial security they require. That said, it would appear that despite some high profile losses, the overall returns for 2002 should mean that some of the ground lost by insurers will be recovered.

2003 has so far not seen the same level of rate increases as in 2002 and, in our view, the current upswing is at or near its peak in many areas of business. At this point in the pricing cycle, there has traditionally been a fairly rapid reduction in pricing. However, due to the combination of factors outlined above, we believe that pricing levels are likely to remain around their current levels throughout 2003 and 2004. Despite the numerous injections of capital into new insurance and reinsurance ventures, the continuing low investment returns and historically low levels of capital reserves mean that aggregate capacity remains tight, reducing the scope for competition to apply downward pressure on rates.

This is a market for the skilled operator. Clients must strike a careful balance between the cost of retaining risk and transferring it. Insurers must underwrite at a profit to rebuild capital reserves in an unfavourable investment climate. A brokers' success depends on its ability to react rapidly to the often fleeting opportunities that such turbulent market conditions present, whilst at the same time maintaining excellent service levels and providing continuity for clients.

In a difficult and volatile marketplace, clients continue to look to JLT to provide effective and rapid solutions to their insurance needs. JLT was well positioned in 2002 to not only retain its existing business but also win new clients. We expect this trend to be even more pronounced in 2003.

Operations

2002 was a year of considerable success for the Group.

JLT's achievements over the year cannot simply be attributed to increased insurance premiums in the current hard market but also reflect organic growth achieved through new business wins and the benefits of a well managed business.

The Risk & Insurance Group produced a very strong result. Revenue for continuing operations increased by 16% to £313.6 million with new business and penetration providing most of this growth. Every business within Risk & Insurance improved its trading margin, demonstrating our growing strength and confidence as an international force that provides a real alternative to the largest global brokers.

Risk Solutions once again achieved strong growth across many business areas - in particular, Accident & Health, Cargo, Casualty, Construction, Energy, Financial & Professional Risks, Marine, direct Aviation and Property, together with Agnew Higgins Pickering, and our Bermuda based operations. In addition to our retail operation in the UK and Ireland, excellent results were also achieved by our Risk & Insurance operations in Australasia, Asia and Canada. Our associate, SIACI, continued to achieve good growth in revenue and profit.

We have continued to strengthen our resources to ensure that we maintain our reputation for having the best teams in the industry in our chosen sectors.

Employee Benefits revenue was flat at £74.5 million. Strong underlying growth in our core business of Actuarial, Consulting and Pension Administration was masked by an unexpectedly fast fall off in pension review business in the second half of the year. The pensions review business has reduced significantly over the past two years as this revenue stream had a limited life.

Against this background, our results for Employee Benefits were very creditable, and provide a firm foundation on which to build. Revenue from new long-term contracts won in 2002 have started to flow through and will benefit the results from 2003. These are the early successes from a strong new business pipeline which we believe will enable us to meet the ambitious targets we set for this business.

In the UK, strong underlying growth has been achieved in our core business areas and we see many opportunities for JLT in the rapidly changing UK Pension and Financial Services sectors.

In the USA revenue was flat, reflecting changes to our major account base. However, into 2203, we have restructured our business to improve trading margins and we believe there are good opportunities as the trend to the outsourcing of administration services continues.Whilst the trading margin for continuing operations in Employee Benefits was impacted by these factors, factors, we expect an improvement in 2003 as we continue to improve our operational efficiency in this business.

Pensions

The transitional provisions of the accounting standard, FRS17 ("Retirement Benefits"), require us to disclose by way of a note to the financial statements, the net deficit on our defined benefit pension schemes at 31st December 2002, calculated in accordance with the principles laid down in the standard. As noted previously, FRS17 adopts a market value approach to the measurement of retirement benefits and requires expanded disclosures, but does not require implementation of the proposed change in measurement approach until the year ended 31st December 2005. The relevant information is set out in note 13 to the attached financial statements.

Exceptional Items

The exceptional items reflect an adjustment to property provisions and the impact of disposals of non-core businesses undertaken during the year.

Dividends

Subject to shareholder approval, a final dividend of 11.0p (net) per share for the year to 31st December 2002 will be paid on 2nd May 2003 to shareholders on the register at 4th April 2003. This brings the total dividend for the year to 18.5p (net) per share, an increase of 16%.

Prospects

Notwithstanding the uncertain economic background in the major markets in which JLT operates around the world, we enter 2003 with real confidence in our ability to deliver future growth in our chosen business sectors.

We have a highly professional and dedicated workforce with a reputation for delivering effective and rapid solutions to our clients' needs, all the more important in these challenging times.

For both Risk & Insurance and Employee Benefits there remains enormous potential for JLT to increase market share and our track record bears testimony to our ability to deliver growth even in challenging economic or market conditions.

Ken Carter

Chairman