JLT chief quits after profit alert

THE chief executive of troubled insurance group Jardine Lloyd Thompson has quit in the wake of a bleak profit warning that has lopped about £20m off targets for the year.

JLT said today it had 'accepted the resignation' of Steve McGill, and he was leaving with immediate effect. Chairman Ken Carter will take over the role for a period of up two years. The shares plunged 56p, or 12%, to 404p, a whisker above lows for the year.

The profits warning comes just three weeks after JLT, Britain's biggest broker, said it would stop accepting the contingent commissions that are central to New York Attorney General Eliot Spitzer's probe into the sector.

A spokeswoman for the group said that McGill's resignation had 'nothing to do' with Spitzer's investigation, which has led to legal action against US rival Marsh & McLennan. 'This is purely down to trading,' she said.

JLT expects underlying profits for the year to be about £92m against previous estimates of £113m. 'The insurance market has softened at a faster rate than had been anticipated earlier in the year,' the company said.

McGill took over as chief executive three years ago. He was paid a basic salary of £400,000 last year and also bagged a £360,000 bonus.

JLT this summer revealed plans to split its broking division into three in a bid to rebound from a tough start to the year.