U.K.’S Cox Reports 22% 2003 Profit Increase; Announces Outsourcing Plans

May 21, 2004

Cox Insurance Holdings, plc., the U.K.’s largest motorcycle insurer, which operates primarily out of the Lloyd’s market, announced a hefty 22 percent increase in profits for 2003 to £52.1 million ($92.8 million). The insurer also announced plans to save an additional £40 million ($71.2 million) in an outsourcing deal with CGI.

Cox Insurance Holdings, plc., the U.K.’s largest motorcycle insurer, which operates primarily out of the Lloyd’s market, announced a hefty 22 percent increase in profits for 2003 to £52.1 million ($92.8 million). The insurer also announced plans to save an additional £40 million ($71.2 million) in an outsourcing deal with CGI.

A report from Reuters indicated that the company foresees continued strong growth of between 4 and 5 percent in premium rates in its auto and motorcycle sectors for 2004, approximately the same rate of increase as it posted for 2003.

Cox’s ten year IT outsourcing contract with CGI is valued at £138 million ($246 million). “As part of the contract, CGI will become the primary manager of all aspects of the insurer’s computing infrastructure, providing applications management including support and maintenance, and development activities spanning Cox’s entire business,” said the bulletin.

Cox CEO Neil Utley commented: “Working with CGI, we will be able to stay focused on the core competency of our insurance business while benefiting from CGI’s expertise and best-of-breed technology services. CGI is a company able to provide the thought leadership and strategic focus we are looking for in a services provider.”

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