JARDINE Lloyd Thompson, the insurance broker thought to be in takeover talks with rival Heath Lambert, yesterday became the first UK-listed broker to set up business in China.

Companies in China spend up to about $18 billion (£9.5 million) a year on commercial cover, but only $1 billion is bought through brokers.

John Hastings-Bass, the executive director in charge of JLT’s overseas operations, said that he aimed to provide insurance to Western companies flocking to China. He said that these companies were more accustomed to buying cover from brokers: “We have a lot of clients that are in the process of moving into China or will be doing so and we have to be there.”

Mr Hastings-Bass said that JLT hoped to sell insurance to big joint-venture infrastructure projects, and also aimed to sell to Chinese businesses.

JLT Lixin Insurance Brokers, of which JLT will own 51 per cent, with Guangdong Ricsson Enterprises owning the remainder, will be based in Guangzhou. The company plans to open offices in Beijing and Shanghai. Ricsson is one of China’s leading IT companies.

US rivals Marsh, Aon and Willis already have Chinese operations, and HSBC’s insurance broking unit has a minority share in a Chinese broker.

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By Christine Seib

Copyright 2006 Times Newspapers Ltd.