Cox has announced a drop in profit on ordinary activities before tax to £26.2m at its 2004 year end compared with £51.7m a year earlier.
Cox said the drop reflected exceptional costs of £26.6m incurred in pursuance of the Group's strategy to simplify and focus it's operations on areas of profitable and long-term growth.
Insurance services reported an operating loss of £7.2m from £12.2m operating profit a year earlier after exceptional non-recurring costs of £18.1m arising from the decision to discontinue certain of the operating activities.
Group underlying operating profit also showed a slight decrease, Cox said, from £59.2m at the year ending 31 December 2003 to £59m a year later.
The Group said despite the exceptional loss total gross written premium (GWP) in the retail underwriting business, managed and 58.1% owned by Cox, increased to £551.7m from £536.2m in 2003. Its share of the underwriting profit increased to £48.4m from £48.1m a year earlier.
Cox said its broking business experienced strong growth during the year and operating premium throughout rose 21.1% to £161.6m from £133.4m, with operating profits up 24.1% to £6.7m from £5.4m.
Gross written premiums in Syndicate 218, managed and 58.1% owned by Cox, grew by 2.9% to £551.7m (2003: £536.2m). The operating ratio was reported as 87.3% from 86.4% in 2003.
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