Cox Insurance said 2004 had started positively as it announced a ten-year outsourcing agreement with CGI Europe for the management of Cox's IT services.
Cox chairman Peter Owen said the outsourcing agreement should deliver savings of approximately £40m over the term of the contract. This represents an 18% reduction in Cox's IT operating costs, he added.
The savings are set to be realised during the 2005 financial year, said Owen, when it is estimated to deliver an annual pretax saving of approximately £3.8m.
In an annual general meeting trading statement, Cox said the year had started well for its underwriting operations, with a continued increase in business volumes.
It said it expects to see further improvement in underlying performance during 2004 for its broking and insurance services, despite the presence of strong competition.
