Jardine Group CEO insurance industry in China will have bright prospects

Yan Ting for United Kingdom Jardine Holdings Limited (JardineLloydThompsonGroupP.L.C.), Chief Executive of DominicBurke, Shanghai Bund 27th--Jardine House, significant. This witness the historical vicissitudes of life and the great changes in Shanghai's United Kingdom retro building, was a famous British Jardine 1843 as the first operation in Shanghai to foreign office building being built in Shanghai to open a branch. 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Benefit from rapid business growth in Asia and Latin America business news: Jardine insurance's financial situation was healthy last year, profit after tax of up to more than 90 million pounds. This year's performance, are you optimistic? DominicBurke: as a listed company, our financial situation was always very careful to predict the future, so I will not say 2011 earnings data will be better, but try to do better. I expect JLT performance this year would be good, although the global economy still faces resistance in Asia, Latin America, North America and Europe has its own problems. JLT in 2010 making good performance is mainly based on two factors: first, our employees. We have retained our most outstanding staff, has also attracted many from competitors at the industry's leading experts. We have business in 42 countries, our competitiveness is the ability to retain talent. As a customer-oriented, focusing on customers ' demand of the company, adhere to the commitment, forged the us success in recent years. Second, Latin America and Asia is a very successful 2010 two business areas. Latin America business has increased by about 20%, about 25% in Asia. Is the strong growth in emerging markets supports our strong performance in the 2010 year. News: you mentioned last year, Latin America and Asia's contribution rate is very high, but now many people are worried that economic growth in emerging markets is slowing, especially in a series of Government austerity policies. DominicBurke: this is indeed a challenge. We see that China's recent GDP data, slightly lower than expectations. However, the insurance market, market still is the most important insurance market in London. Globalization has brought about very alarming changes over the past decade, but the London insurance market dominance. This is a major test for JLT, from Brazil, and Chile to Mexico, and Colombia, within the market's ability to take risk is very small, so the last risk is pooled to London. Asia as well. I agree with the slowdown in GDP growth rates in China may have a greater negative impact on some companies, but 8%~10% of GDP growth in China, is already very considerable growth. News: If you want to compare in Asia and Latin America, which areas of fast business growth? DominicBurke: this is a very interesting question. I'm more optimistic about Asia. There are two reasons: first, we have more staff in Asia, for example, in South-East Asia such as Singapore, Hong Kong and Guangzhou. Second, mainland China middle class rising trend is irreversible. We provide professional services to their strength. Around the risk of intellectual capital will further boost our growth in China. News: you have said a few years ago into the United States market was a mistake, now? DominicBurke: Yes. United States occupy the global assets of 46%~47% and accidents, people will think to enter this market is a very natural thing. But the operation is a business, not only to see today, remains to be seen in the future. Our business very rich resources, the debt ratio is low, we have sufficient funds can invest anywhere in the world. But in fact, I think investment in Latin America, the greater China region, Eastern Europe, South Africa, the Middle East, North Africa more attractive, which will provide more long-term than North America to JLT, better economic returns. Because I believe that global economic center was transferred from West to East, from currency valuation, as well as Latin America and the rise of China and Asia's emerging middle class all you can see that. When we were competitive on a global scale and fairly successful time, why devote enormous resources to catch up with the giants of the North American market? We do not want to in the United States becomes the one who chased the former and later on the market, although we and the United States three insurance broker, gap is not very big, but they are in the United States position is very firm. Nevertheless, the North American market is still very important for JLT. Our operations center is set in North America, and independent brokers have a lot of cooperation. These brokerage representatives did not, and three large insurance brokerage company, they chose JLT because our innovation and trading skills. Today, we are in the United States still has more than 300 million dollars of income, but also continues to grow. Intellectual capital that London will still maintain the dominance of the global insurance industry news: London will continue to maintain a dominant position do? DominicBurke: I think so. Because a great deal of intellectual capital gathered in London – insurance companies, insurance brokers, accountants, legal advisers, and so on are brought together and fused together here, this means that London will continue to dominate. Intelligence is the leader-needed thing, not just the capital itself. News: with the advancement of government regulatory reform, regulation becomes more aggressive, London is able to maintain the present professional leadership, will force people to leave London, seeking a more relaxed environment? DominicBurke: I think the problem is not regulation, but the income tax levied by the Government. I do not think that the regulation is to let London lose leadingReasons. For example, JLT might want to consider registering to lower taxes Dublin, but made this decision means that we have to leave the market of a concentration of all key elements. For example, you may recall last year Mexico Gulf oil spill that occurred, the subsequent claims are done in London. In six days, the payment of about US $ 560 million. In resolving the claim in London has played a key role in the process, including legal arbitration, lawyers, accountants and other links. Also in the world no place like London has such a strong intellectual capacity and capital. I'm not strongly defended London's position, I'd rather these people all over the world, so that our customers can benefit from all over. Providing customers around the world with the same intellectual talents, experience, knowledge, solid technical skills is a challenge. We peer discusses how to Shanghai and Shanghai personnel sent to London for training, exchange of personnel of insurance plans. Daily insurance plays in the Chinese market: currently low insurance penetration and maturity of China's insurance market, what are your prospects? DominicBurke: my view is very optimistic. China market penetration of only 3.6%~3.7%, and in the United Kingdom is 12%, in the United States is 8%, Brazil was 4%. So a more normal market penetration ratio may be in between 8%~10%. Consideration of China's growth and market penetration rate of growth, I think the prospects of China's insurance market is very encouraging. First, the Chinese Government in the area of education and training efforts have been made, set up training courses at the University, encouraged access to finance, especially the insurance industry. Second, is the trend of its own interests. Middle class people to buy real estate, vehicles, furniture, they want to protect such property. We all remember the fire in Shanghai last year, many people lost their lives, but few people buy insurance. For the maturation of a developed economy, such a situation is not sustainable. Shanghai has now become a mature economy, a leading market, an important link in the global economy, cannot make people lose saved his life because of unexpected property. So the insurance market in China will have bright prospects. Chinese companies now traded around the world, JLT provided for several important enterprises in China's overseas trading services. This process essentially influenced many Chinese enterprises, so that they understand how insurance companies can play a role. I think this is a good trend, and will continue. News: what is your maximum limit is encountered in the Chinese market? DominicBurke: is intellectual capital, rather than ability, China has enough capacity. China has changed in recent years, China is on a different road, is pursuing a very robust strategies. And insurance economy engine lubricating oils in the world. It also not-so-obvious in China, because China has a high level of self-protection, the contracting parties own risk. But at the same time, China's private enterprises are growing up, and was very successful, this will require more insurance against risks, natural disasters, loss of life and property. As China begins overseas investment, you need to deal with the subject-area investment policy and legal environment, they need to help them make the right decision support. JLT is a very good platform to provide this support, not only for the enterprises of Chinese investment overseas, also for foreign-funded enterprises investing in China customers. News: your strategic plan for what's next in China? DominicBurke: it temporarily. I can tell you is that our plan very long-term, JLT is five years in China, for existing achievements and we are very excited, we have just defined a new five-year plan, we have a company in Shanghai, Beijing, Guangzhou, also is expected to be more. We may also provide the Western development, it is also possible to Northern Development. We want a long-term investment in China. Innovation and regulation and daily: we know that the JLT is an innovative, so what do you think about innovation in your field, such as credit default swaps (CDS), which is a good innovation is a poison? Do you have CDS involved business during the crisis? DominicBurke: first of all, let us clarify some concepts. Regardless of those toxic assets and insurance, banks in trading these assets rather than insurance companies. In many ways, is banking has created the problem, instead of the insurance business. 2007-2008 years since the financial crisis appears to be, and insurance business at all. JLT have been innovations has a good reputation, is famous for most powerful transactional brokers, insurance brokers and is the most innovative. News: If you want to invest in such products, what do you do? DominicBurke: we will not get involved in. In almost all parts of the world of our transactions are regulated, we need a trading licence, we are not involved in financial guarantees. JLT London head office cannot assist in arranging any financial guarantee contracts. Only a small portion of the insurance companies involved in financial guarantee contracts, AIG is the largest of which. The global economy, agricultural economics, tobacco and coffee, people need to trade these goods will require insurance, but financial security is not the original purpose of the insurance, nor to JLT. News: increasing volatility of commodity prices, JLT have innovative products to meet the market volatility? DominicBurke: this is probably a good idea. Now in stock market, investors can hedge to manage risk, modeling, programming, reducing transaction risks. But in fact, for any one of the very high transparency of financial markets, in which I do not think that insurance can help people avoid the downside risk.