Cox Insurance announced a major change of direction for its business yesterday after its share price dropped 23%, 10.5p down to 36p.
It said it is going to discontinue all commercial underwriting with immediate effect (outside its profitable nuclear and aviation businesses) and will focus instead on its retail operations.
Lloyd's has approved the restructuring proposals.
Cox also said it will act as an underwriting agency for third party capital providers for the 2003 year of account, or will sell the business.
It has proposed an equity capital raising in order to capitalise a new dedicated corporate member, and support the underwriting of the retail business in future.
It is believed Cox was pressured to make the announcement by the Financial Services Authority.
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