Cox Insurance crashes by pounds 207m

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Cox Insurance crashes by pounds 207m

COX INSURANCE Holdings, the Lloyds underwriter, saw its market value crash by more than pounds 207m yesterday after it announced it would shed 150 of its 1,500-strong workforce, and warned profits would be almost 40 per cent below expectations.

Its shares plummeted 45 per cent to 187p as Cox said it would take a pounds 4.3m exceptional hit this year due to an increase in US auto claims, the loss of pounds 1m in its nuclear underwriting business, and the cost of the group restructuring.

The company plans to retreat from businesses such as marine insurance and property, according to Richard Brewster, the finance director.