Following a 22% rise in pre-tax profits in the 12 months ending 31 December 2003, Cox Insurance Holdings said it was planning to reinstate its dividend with a final payment of 1p per share.
Pre-tax profits rose to £52.08m for the year, up from £42.69m in 2002.
Cox said 2003 had been the most successful year in its history, with gross written premiums reaching £310.93m, slightly up from the £301.53m written the previous year.
Operating profit on continuing operations before goodwill was £58m, compared with £52.6m for 2002.
“We believe that the underwriting climate remains favourable, particularly in our chosen markets where both volumes and premiums are showing encouraging signs of growth,” said chairman Peter Owen. “I have every confidence that we will continue to build on our impressive performance going forward.”
Owen described the group's underwriting excellence as “unparalleled” and said it had a strong team and proven strategy which was delivering positive results.
He said the group's successful exit from commercial operations has allowed it to focus efforts on making the most of the significant opportunities which the retail insurance market presented.
The company warned that due to the current legal dispute over losses from the September 11 World Trade Center attacks, losses from the disaster had the potential to rise. Cox's exposure to the claim comes entirely through Syndicate 1208, it said.
At 31 December 2003, gross claims outstanding from the attacks were approximately £33m, which after anticipated costs and recoveries was reduced to approximately £15m.
Should the WTC trial rule that the attacks constituted as two events, which the insurer disputes, Cox warned gross losses would increase by an estimated £30m, or a net loss of £8m.
