LexisNexis® Risk Solutions, a division of Reed Elsevier, has announced its intention to create a joint-venture with Jing You, a leading private supplier of data, software and services to the insurance industry in the People’s Republic of China. The joint-venture will supply data to insurance companies in China and be based in Beijing.

The partnership is part of LexisNexis Risk Solutions’ strategy of internationalizing its business in fast-growing markets. LexisNexis already provides extensive services to US auto insurance carriers and is increasing its product offering to UK insurers.

“The auto insurance market in China is growing rapidly, and the combination of our expertise and technology with Jing You’s data and deep understanding of the local market provides us both with a unique opportunity,” said Bill Madison, chief executive, Insurance, LexisNexis Risk Solutions. “This marks another important step in the international growth of our company through partnerships with organisations in markets that are already viable and productive.”

“Jing You has been cultivating the Chinese insurance data market for more than 10 years. It owns high-quality data, services a large customer base, and has deep experience meeting the needs of the local market. Combined with LexisNexis’ technology and product expertise, we will offer even better products and services to the Chinese insurance industry,” said Feng Yancheng, founder and chief executive officer, Jing You. “Following the upcoming reform of Chinese non-compulsory auto insurance products, insurers will increasingly focus on improving management and performance through data products and services. The joint-venture between Jing You and LexisNexis will leverage the resources of both parties, and offer even better outcomes to our customers.”

Financial terms were not disclosed. The completion of the transaction is conditional upon regulatory approval.

Interim Management Statement Reed Elsevier 23 okt. 2014

Reed Elsevier, the global professional information company, reports continued underlying revenue growth in the first nine months of 2014 and reaffirms the outlook for the full year.

• Underlying revenue growth +4% (+3% excluding exhibition cycling) in the first nine months.
• Continued positive underlying revenue growth across all major business areas.
• Continued transformation of our business, primarily through organic development, supported by selective portfolio actions.
• Completed or announced 25 acquisitions of small content, data and exhibition assets year to date for a total consideration of £294m.
• Disposed of 11 assets year to date for a total consideration of £55m.
• Completed £525m of share buybacks, with the remainder of the previously announced £600m total to be completed by the end of the year. Financial position and cash flow profile remain strong.
• Full year outlook: The 2014 outlook is unchanged. We remain on track to deliver another year of underlying revenue, profit and earnings growth.

Nine month trading performance and full year outlook by business area:

Scientific, Technical & Medical
• Underlying revenue growth +2%.
• Research subscription revenue growth rates remained around half a percentage point higher than prior year. Article submissions and usage growth accelerated further, into double digits. Scientific & medical databases & tools grew well.
• Print book revenue declines have moderated year to date compared to prior year. However, a weak August for print books led to the overall growth rate for STM, while still higher than a year ago, rounding back down to +2% year to date.
• Full year outlook: We expect the improvement in research subscription revenue growth rates to continue for the full year. Although print book revenues showed positive year on year growth in the month of September, their sales trajectory in the final quarter remains uncertain.

Risk & Business Information
• Underlying revenue growth +7%.
• Strong growth continued across insurance, business services, government and major data services, driven by volume growth, new product roll-outs and expansion in adjacent verticals. A part of the improvement in growth rate since the first half was due to favourable phasing.
• Risk & Business Information has accounted for around half of Reed Elsevier’s 25 acquisitions year to date. FircoSoft has strengthened our existing anti-money laundering solution set, and the Jing You joint venture marks our entry into the Chinese auto insurance market.
• Full year outlook: We expect underlying revenue growth trends to continue, although the small favourable phasing effect is likely to unwind in the full year.

Legal
• Underlying revenue growth +1%.
• Customer markets remain subdued in the US and Europe. The roll-out of new platform releases has continued, with adoption and usage of new products and solutions progressing well.
• Full year outlook: Although the scope for underlying revenue growth remains limited in the current customer market environment, we remain focused on process improvement and expect the run rate of profitability gains in the first half to be at least maintained for the full year.

Exhibitions
• Underlying revenue growth +8% (+7% excluding cycling and timing effects).
• Growth remained strong in the US and Japan, and modest in Europe. China continued to see strong growth in certain sectors, and more modest growth elsewhere. Revenues in Brazil reflected good growth in some of our leading events but a slowdown in the wider economy.
• Full year outlook: We expect the overall revenue growth trends to continue. The positive impact of cycling is expected to contribute around two percentage points of full year underlying revenue growth.

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