RNS Number:8947P
Cox Insurance Holdings PLC
18 September 2003


                           Cox Insurance Holdings Plc

         Unaudited Interim Report for the six months ended 30 June 2003


                                                                 2003      2002
Operating profit on ordinary activities for continuing
operations before tax *                                         #30.2m   #21.9m
                                                                
Operating profit on ordinary activities before tax              #28.3m    #9.1m
                                                                
Earnings per share                                                6.3p     1.6p

* On the basis of a longer-term rate of return


Highlights


* Strong 1st half performance.

* Continuing Underwriting result up 30% at #21.7m (2002: #16.7m)

* Combined ratio of 86% market leading

* Record 'Broking and Insurance Services' profits up 62%

* Programme to deliver further cost savings and efficiencies underway

* Run-off of discontinued commercial business on track.

* Intend to recommend a final dividend for 2003.



Peter Owen, Chairman, Cox Insurance Holdings Plc, said:


Our position in the retail insurance market has provided us with a solid
platform for this improved result. We will continue to underwrite for profit and
to exploit opportunities in our Broking and Insurance Services businesses.


We have laid firm foundations for continued success in 2003 and beyond.



For further information, please contact:


Cox Insurance Holdings Plc                                     0870 787 3663

Peter Owen, Chairman
Neil Utley, Chief Executive
James Morley, Finance Director


Brunswick Group Ltd                                            020 7404 5959


Anita Scott / Rupert Young


www.cox.co.uk

Report to Shareholders

for the six months ended 30 June 2003


OVERVIEW


The significant improvement in financial performance that we reported in the
2002 results has continued during the first half of 2003. Our position remains
strong and continues to provide a favourable trading environment for us.


Group profit before tax improved to #28.3m an increase of 211% on the #9.1m of
the same period last year. Profit after tax increased to #19.1m from #2.6m, and
earnings per share increased to 6.3p from 1.6p.


The run off of the discontinued commercial business is making steady progress
and gives us increasing confidence that the ultimate position will be positive.
The discontinued business made an operating loss, at longer-term rates of
return, of #1.3m for the period - an improvement from a loss of #9.7m for the
same period last year.


Retail Underwriting has been the bedrock of our business and has made a
technical profit each year for 35 years. At longer-term rates of return its
results have improved for the first half from #16.7m to #21.7m, an increase of
30%. Our Broking and Insurance Services businesses continue to make excellent
progress raising profits from #8.6m for the first half of 2002 to #13.9m this
year, an increase of 62%. Divisional numbers shown above are before elimination
of inter-company profits of #0.7m.


UNDERWRITING


Whilst we have a track record of profit and growth in the retail insurance
market, we continue to drive our business forwards.


The private car-broker sector constitutes less than a quarter of our
underwriting business and whilst at this competitive point in the cycle,
continues to provide opportunities for profitable underwriting, we are focusing
on other areas for growth. In particular, we have seen increases in motorcycles,
special risks, household and parts of our fleet portfolio, all of which are
producing good returns.


Whilst the underlying levels of premiums actually signed has increased over the
previous first half year, a re-estimation of pipeline business between the
periods results in a small decrease in reported written premiums.


Our combined ratio at 86% (89% first half 2002) is market leading.


BROKING AND INSURANCE SERVICES


We have continued to focus on expanding our partnership and branch-based
businesses whilst competing effectively in the 'direct' business. We have
strengthened our panels and improved their pricing effectiveness. The profits at
#3m are up 30% on the same period last year and the expense ratio at 82% makes
us one of the most efficient in the market.


The Insurance Services businesses have been restructured to increase efficiency
and maximise cross-selling opportunities. Our premium finance business increased
advances to customers by 2.9% to #50m. The first half has also seen the release
of a substantially improved update of our Brokersure policy management system
for high-street brokers. Monthly transaction values have increased eightfold
since the beginning of the year. We expect Brokersure to allow us to
intermediate a significant and increasing share of the substantial high-street
broking market. The profits for the Insurance Services businesses have improved
73% to #10.9m from #6.3m.


DISCONTINUED BUSINESS


The run-off of the discontinued commercial book has proceeded well, resulting in
an improvement of #8.3m over the same period last year, to a loss of #1.3m. The
number of live risks has reduced by over 80% since January. We are in final
negotiations to outsource the administration of the run-off. The value of assets
in the balance sheet available to support any deterioration in the position of
the discontinued business has increased from #17m to #25m, as explained in Note
2.


COST REDUCTIONS


This year we started a major programme, which will deliver more efficient
processes, improve service delivery and generate significant ongoing cost
savings. Our target is an annualised reduction of over #15m from our current
controllable expense base of #107m by the end of 2005, the majority of which
will fall to the benefit of the Group.


DIVIDEND


In the Annual Report we stated that we would re-consider the question of
dividends at the time of the interim results and we are pleased to confirm that,
in the absence of any unforeseen events, the board intend to recommend the
payment of a final dividend in respect of the year ended 31 December 2003.


OUTLOOK


Cox has the specialist skills and expertise to exploit opportunities in the
current market. In the first half of 2003 Cox has delivered an excellent trading
profit.


Our position in the retail insurance market has provided us with a solid
platform for this improved result. We will continue to underwrite for profit and
to exploit opportunities in our Broking and Insurance Services businesses.


We have laid firm foundations for continued success in 2003 and beyond.







Peter Owen                                      Neil Utley
Chairman                                        Chief Executive


17 September 2003


Unaudited Consolidated Profit and Loss Account - Technical Account

for the six months ended 30 June 2003

                             Six months ended 30 June 2003           Six months ended 30 June 2002       Year ended 31
                                                                                                         December 2002
                                      (unaudited)                             (unaudited)                    (audited)

                         Continuing  Discontinued                Continuing  Discontinued
                         operations    operations          Total operations    operations       Total            Total
                 Note         #'000         #'000          #'000      #'000         #'000       #'000            #'000
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Gross written       3       149,598        (6,103)       143,495    160,695        76,376     237,071          370,368
premiums
Outwards                    (14,444)       (4,154)       (18,598)   (23,595)      (80,858)   (104,453)        (100,416)
reinsurance       
premiums
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Net written                 135,154       (10,257)       124,897    137,100        (4,482)    132,618          269,952
premiums          
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Change in gross              (8,266)       12,990          4,724    (24,001)       26,688       2,687            2,783
unearned
premiums
Change in                    (1,606)      (10,098)       (11,704)    10,409        30,618      41,027           11,382
unearned          
outwards
reinsurance
premiums
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Change in net                (9,872)        2,892         (6,980)   (13,592)       57,306      43,714           14,165
unearned          
premiums
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Net earned          3       125,282        (7,365)       117,917    123,508        52,824     176,332          284,117
premiums
Net investment      5         7,262         2,418          9,680      5,387         6,445      11,832           23,164
return on a       
longer -term
rate of return
basis
transferred from
non-technical
account
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Total technical             132,544        (4,947)       127,597    128,895        59,269     188,164          307,281
income            
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Gross claims                (92,551)     (110,103)      (202,654)   (82,612)      (91,559)   (174,171)        (370,190)
paid
Reinsurance                  12,999        12,629         25,628      9,572        54,607      64,179          157,061
recoveries on     
paid claims
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Net paid                    (79,552)      (97,474)      (177,026)   (73,040)      (36,952)   (109,992)        (213,129)
claims            
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Change in claims             (1,077)      109,523        108,446    (11,503)       13,669       2,166          108,566
provisions
Change in                     5,303        (5,875)          (572)     7,230       (23,547)    (16,317)         (73,092)
reinsurers'       
share of claims
provisions
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Change in net                 4,226       103,648        107,874     (4,273)       (9,878)    (14,151)          35,474
claims            
provisions
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Net claims                  (75,326)        6,174        (69,152)   (77,313)      (46,830)   (124,143)        (177,655)
incurred
Net operating       3       (34,772)       (2,559)       (37,331)   (34,874)      (22,098)    (56,972)         (98,308)
expenses          
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Total technical            (110,098)        3,615       (106,483)  (112,187)      (68,928)   (181,115)        (275,963)
charges           
---------------  -----      -------      --------         ------    -------      --------    --------        ---------
Balance on          3        22,446        (1,332)        21,114     16,708        (9,659)      7,049           31,318
technical         
account
---------------  -----      -------      --------         ------    -------      --------    --------        ---------





Unaudited Consolidated Profit and Loss Account - Non-technical Account

for the six months ended 30 June 2003

                              Six months ended 30 June 2003           Six months ended 30 June 2002       Year ended 31
                                                                                                          December 2002
                                     (unaudited)                             (unaudited)                      (audited)

                         Continuing Discontinued                Continuing  Discontinued
                         operations   operations          Total operations    operations          Total           Total
                    Note      #'000        #'000          #'000      #'000        #'000s          #'000           #'000 
---------------    -----    -------     --------         ------    -------      --------       --------       ---------
Balance on          3, 4     22,446       (1,332)        21,114     16,708        (9,659)         7,049          31,318
technical account
Net investment         5     12,618        2,418         15,036      9,533         6,445         15,978          32,197
return on a
longer-term rate of
return basis
Share of                         29            -             29          -             -              -             (43)
associate
Net investment               (7,262)      (2,418)        (9,680)    (5,387)       (6,445)       (11,832)        (23,164)
return on a
longer-term rate of
return basis
transferred to
technical account
Other income                 34,559            -         34,559     36,263             -         36,263          61,396
                             -------------------------------------------------------------------------------------------
Other expenses              (30,662)           -        (30,662)   (33,861)            -        (33,861)        (57,508)
Amortisation of              (1,522)           -         (1,522)    (1,374)            -         (1,374)         (2,525)
goodwill and                 
syndicate
capacity
                             -------------------------------------------------------------------------------------------
Other charges               (32,184)           -        (32,184)   (35,235)            -        (35,235)        (60,033)
---------------    -----    -------     --------         ------    -------      --------       --------       ---------
Operating profit/      4     30,206       (1,332)        28,874     21,882        (9,659)        12,223          41,671
(loss) based on a
longer- term
investment return
Short term             5       (488)         (92)          (580)    (2,359)         (809)        (3,168)          1,015
fluctuations in      
investment return
---------------    -----    -------     --------         ------    -------      --------       --------       ---------
Operating profit/            29,718       (1,424)        28,294     19,523       (10,468)         9,055          42,686
(loss) on ordinary
activities before
tax
Tax on profit/               (9,633)         427         (9,206)    (6,445)            -         (6,445)        (16,614)
(loss) on ordinary   
activities
---------------    -----    -------     --------         ------    -------      --------       --------       ---------

Profit/(loss) on             20,085         (997)        19,088     13,078       (10,468)         2,610          26,072
ordinary activities
after tax
Minority                          -            -              -          -             -              -               2
interests            
---------------    -----    -------     --------         ------    -------      --------       --------       ---------

Retained profit/       8     20,085         (997)        19,088     13,078       (10,468)         2,610          26,074
(loss) for the       
period
---------------    -----    -------     --------         ------    -------      --------       --------       ---------
Earnings per           6                                    6.3p                                    1.6p           11.2p
share
Diluted earnings       6                                    6.2p                                    1.6p           11.0p
per share





Unaudited Consolidated Balance Sheet

as at 30 June 2003

                                         30 June        30 June    31 December
                                            2003           2002           2002
                             Note          #'000          #'000          #'000
                                     (unaudited)    (unaudited)      (audited)

Assets

Investment in syndicate         7         16,442         17,171         16,972
capacity

Goodwill                                  23,309         25,267         24,474

Investment in own shares                   2,863          2,883          2,883

Investment in participating                  568            784            754
interests

Other financial                          410,535        410,911        458,092
investments

Reinsurers' share of
technical provisions
-         provision for                   10,050         70,181         21,756
          unearned premiums
-         claims                         211,461        269,812        213,475
          outstanding

Debtors                                  253,654        286,765        297,242

Tangible fixed assets                     28,817         26,187         26,914

Cash at bank and in hand                  42,236        129,481         27,355

Deferred acquisition                      37,597         44,840         38,732
costs

Prepayments and accrued                   16,681          5,962          8,946
income
------------------------     ------     --------        -------       --------

Total assets                           1,054,213      1,290,244      1,137,595
------------------------     ------     --------        -------       --------

Capital and reserves

Share capital                             30,839         82,932         30,827

Share premium account           8         24,488        173,295         24,442

Revaluation reserve             8            560            566            566

Profit and loss account         8         46,331       (196,612)        27,237
------------------------     ------     --------        -------       --------

Total equity shareholders'               102,218         60,181         83,072
funds
Equity minority interests                     74             73             74
------------------------     ------     --------        -------       --------

                                         102,292         60,254         83,146
------------------------     ------     --------        -------       --------

Liabilities

Technical provisions
-         provision for                  166,367        224,094        171,091
          unearned premiums
-         claims                         544,364        758,802        661,829
          outstanding

Provisions for other risks                 2,427          1,817          2,042
and charges

Creditors                                209,959        195,974        174,344

Accruals and deferred                     28,804         49,303         45,143
income
------------------------     ------     --------        -------       --------

Total liabilities                        951,921      1,229,990      1,054,449
------------------------     ------     --------        -------       --------

Total equity shareholders'             1,054,213      1,290,244      1,137,595
funds and liabilities
------------------------     ------     --------        -------       --------







Unaudited Consolidated Statement of Total Recognised Gains and Losses

for the six months ended 30 June 2003

                                       Six months     Six months          Year 
                                            ended          ended         ended
                                          30 June        30 June   31 December
                                             2003           2002          2002
                                            #'000          #'000         #'000
                                      (unaudited)    (unaudited)     (audited)

Profit for the financial period            19,088          2,610        26,074
Movement in revaluation reserve                 -            (11)          (11)
--------------------------              ---------      ---------      --------

Total recognised gains and losses          19,088          2,599        26,063
arising in the year

--------------------------              ---------      ---------      --------




Unaudited Consolidated Cash Flow Statement

for the six months ended 30 June 2003



                                      Six months     Six months           Year 
                                           ended          ended          ended
                                         30 June        30 June    31 December
                                            2003           2002           2002
                             Note          #'000          #'000          #'000
                                     (unaudited)    (unaudited)      (audited)

Net cash outflow from          10        (34,083)       (14,611)       (64,212)
operating activities

Returns on investments and                (3,122)        (3,337)        (6,565)
servicing of finance

Taxation                                    (118)          (336)           448

Capital expenditure                       (3,956)        (3,679)        (6,904)

Acquisitions and                            (162)          (402)          (458)
disposals

Financing                                 (5,126)        22,490         21,735

---------------------          ----     ---------     ---------       --------

(Decrease)/increase in cash
and portfolio investments
                                         (46,567)           125        (55,956)
---------------------          ----     ---------     ---------       --------



Unaudited Reconciliation of movement in equity shareholders' funds

                                      Six months     Six months           Year 
                                           ended          ended          ended
                                         30 June        30 June    31 December
                                            2003           2002           2002
                                           #'000          #'000          #'000
                                     (unaudited)    (unaudited)      (audited)

Profit for the financial period           19,088          2,610         26,074
Shares issued, net of issue costs             58         68,165         67,593
Revaluation of freehold property               -            (11)           (11)
-------------------------              ---------      ---------       --------

Net increase in equity                    19,146         70,764         93,656
shareholders' funds
Opening equity shareholders' funds/       83,146        (10,510)       (10,510)
(deficit)
-------------------------              ---------      ---------       --------

Closing equity shareholders'             102,292         60,254         83,146
funds
-------------------------              ---------      ---------       --------



Notes to the Unaudited Interim Report

for the six months ended 30 June 2003



1.        Basis of preparation


The unaudited interim accounts have been prepared on the basis of accounting
policies consistent with those set out in the Group's 2002 Report and Accounts.


The interim announcement, which does not constitute statutory accounts, has been
prepared in accordance with Section 255A of, and Schedule 9A to, the Companies
Act 1985, as amended by the Companies Act 1985 (Insurance Companies Accounts)
Regulations 1993 and the ABI SORP on Accounting for Insurance Business issued in
December 1998.


The previously stated figures as at 30 June 2002 and 31 December 2002 have been
adjusted to reflect the reclassification of discontinued and continued
operations. This reclassification has not been audited.


The audited accounts for the year ended 31 December 2002, extracts of which are
included in this interim report, have been delivered to the Registrar of
Companies and received in an unqualified audit report. Copies of this report are
available from the Company Secretary at the registered office, Library House,
New Road, Brentwood, Essex, CM14 4GD.


2.             The Lloyd's Agreement


On 11 April 2002 the Company and certain of its subsidiaries entered into an
agreement with Lloyd's relating to the proposed restructuring of the Group's
activities.


As a consequence any further economic exposure of the group in respect of the
liabilities of CDCM Limited ('CDCM') estimated at the balance sheet date from
its participation on Syndicate 1208 should be limited to the aggregate of:


* Underwriting earnings from the 2002 and prior underwriting accounts


* Any value realised by CDCM from existing tax losses over and above
#40m (the amount recognised in the balance sheet at 31 December 2001)


* #875,000 of financing charges


If the liabilities of CDCM were to deteriorate beyond this limit CDCM could
become insolvent as the Company will not provide any further support to its
subsidiary. Should CDCM become insolvent, subsequent to the appointment of a
liquidator the Company would no longer consolidate the assets and liabilities of
CDCM. However, until this time any future underwriting results and other changes
in the value of assets and liabilities of CDCM will be reflected in the Group's
profit and loss account.


At 30 June 2003 the value of assets recognised in the Group balance sheet which
are subject to this exposure are estimated to be #25m (31 December 2002 - #17m).





3.           Analysis of underwriting result

Analysis of gross premiums written, gross premiums earned, gross claims
incurred, reinsurance balance, net operating expenses and the underwriting
result:

                                               Six months ended 30 June 2003 (unaudited)

                        Accident      Motor      Marine,     Fire &      Third   Miscellaneous  Reinsurance       Total
                        & health              aviation &   property      party                     to close
                                               transport     damage  liability
                           #'000      #'000        #'000      #'000      #'000           #'000        #'000       #'000
                                                                                
    

Gross premiums             3,252    124,717       (2,619)    14,337      2,187           1,621            -     143,495
written
Net earned                   530    106,931         (714)     8,530      2,443             197            -     117,917
premiums
----------------          ------     ------       ------     ------     ------          ------      -------      ------

Gross premiums             2,826    122,290       10,146     10,885      2,412            (340)           -     148,219
earned
Gross claims              (2,637)   (88,431)      (3,964)      (416)    (7,958)          9,198            -     (94,208)
incurred
Reinsurance               (2,583)     8,246       (8,820)       237      4,086          (6,412)           -      (5,246)
balance
Net operating             (1,366)   (26,410)      (3,162)    (4,283)      (275)         (1,835)           -     (37,331)
expenses
Net longer-term              109      5,617        1,302      1,874        963            (185)           -       9,680
investment return
transferred from
the non-technical
account
                                                                                                                        
----------------          ------     ------        ------    ------     ------          ------      -------      ------

Balance on                (3,651)    21,312        (4,498)    8,297       (772)            426            -      21,114
technical account
----------------          ------     ------        ------    ------     ------          ------      -------      ------



                                              Six months ended 30 June 2002 (unaudited)                               

                         Accident     Motor    Marine,    Fire &      Third Miscel-  Reinsurance              Total    
                         & health           aviation &  property      party laneous     to close                        
                                             transport    damage  liability                                             
                            #'000     #'000      #'000     #'000      #'000   #'000       #'000               #'000     
                                                 
Gross                       2,885   139,429     27,958    56,192      6,956   3,651           -             237,071 
premiums written                                                                                                        
Net earned                  5,167   103,379     10,754    44,489      8,614   3,929           -             176,332 
premiums                                                                                                            
----------------           ------    ------     ------    ------     ------  ------     -------              ------
Gross                       4,917   114,547     28,104    72,568     15,343   4,279           -             239,758 
premiums earned                                                                                                         
Gross                      (1,945)  (76,152)   (31,633)  (40,579)    (8,462)(13,234)          -            (172,005)
claims incurred                                                                                                         
Reinsurance                (2,367)   (3,936)     7,971   (32,443)     3,442  11,769           -             (15,564) 
balance                                                                                                             
Net                        (1,994)  (25,640)    (8,158)  (16,415)    (2,908) (1,857)          -             (56,972) 
operating expenses                                                                                                      
Net                                                                                                                 
longer-term                    22     3,661      2,231     4,567      1,185     166           -              11,832 
investment return                                                                                                       
Transferred from the                                                                                                    
non-technical account                                                                                                   
----------------           ------    ------     ------    ------     ------  ------     -------              ------     
 
Balance on                 (1,367)   12,480     (1,485)  (12,302)     8,600   1,123           -               7,049 
technical account                                                                                                       
     
----------------           ------    ------     ------    ------     ------  ------     -------              ------ 
 

                                                                                                                      
                                                Year ended 31 December 2002 (audited)                                 

                       Accident     Motor     Marine,    Fire &      Third  Miscellaneous Reinsurance       Total     
                       & health            aviation &  property      party                   to close                   
                                            transport    damage  liability                                              
                          #'000      #'000      #'000     #'000      #'000           #'000      #'000       #'000       
                                                  
Gross                     8,208    259,704     17,455    69,122      7,921           7,038        920     370,368   
premiums written                                                                                                        
Net earned               16,199    211,686     10,693    33,808      2,287           8,524        920     284,117   
premiums                                                                                                            
----------------         ------     ------     ------    ------     ------          ------    -------      ------     
Gross                    13,296    237,043     31,444    73,049      7,922           9,477        920     373,151   
premiums earned                                                                                                         
Gross                    (7,443)  (166,018)   (48,984)   (4,273)    (9,512)        (24,474)      (920)   (261,624) 
claims incurred                                                                                                         
Reinsurance               3,500      1,323     17,744   (45,860)    (1,170)         19,398          -      (5,065)   
balance                                                                                                             
Net                      (5,740)   (53,022)   (15,235)  (20,623)      (602)         (3,086)         -     (98,308)  
operating expenses                                                                                                      
Net longer-term             107      9,952      3,451     7,404      1,889             361          -      23,164    
investment return                                                                                                       
Transferred from the 
non-technical account 
----------------         ------     ------     ------    ------     ------          ------    -------      ------     
Balance on                3,720     29,278    (11,580)    9,697    (1,473)           1,676          -      31,318    
technical account                                                                                                       
----------------         ------     ------     ------    ------     ------          ------    -------      ------       
  

Reinsurance inwards business has been analysed by class of business, rather than
being shown separately, as the reinsurance accepted by the Group has the
characteristics of primary business.


Gross premiums are all written in the United Kingdom and are transacted in the
following currencies:

                                     Six months       Six months          Year 
                                          ended            ended         ended
                                   30 June 2003     30 June 2002   31 December
                                                                          2002
                                          #'000            #'000         #'000
                                    (unaudited)      (unaudited)     (audited)
Pounds Sterling                         147,862          206,827       323,119
US Dollars                               (1,124)          28,283        44,186
Canadian Dollars                         (3,243)           1,961         3,063
------------------------------        ---------         --------      --------

                                        143,495          237,071       370,368

------------------------------        ---------         --------      --------



4.                Segmental analysis



                                                 Six months ended 30 June 2003 (unaudited)

                        Retail         Underwriting          Total        Broking &         Corporate           Total
                                         Commercial                       Insurance
                                                                           Services
                         #'000                #'000          #'000            #'000             #'000           #'000
                                                                                                              143,495
Gross written          149,598               (6,103)       143,495                -                 -
premiums
-----------------       ------              -------         ------          -------           -------          ------
Net earned premiums    125,282               (7,365)       117,917                -                 -         117,917
Net claims incurred    (75,326)               6,174        (69,152)               -                 -         (69,152)
Operating expenses     (34,772)              (2,559)       (37,331)               -                 -         (37,331)
Other income                 -                    -              -           33,421             1,138          34,559
Other expenses               -                    -              -          (25,418)           (5,244)        (30,662)
(including share of       
associate)
                        ------------------------------------------------------------------------------------------------
Net longer-term          7,262                2,418          9,680                -                 -           9,680
investment income
Investment return on         -                    -              -            5,819             2,684           8,503
other activities
Interest payable                                  -              -             (603)           (2,544)         (3,147)
                        ------------------------------------------------------------------------------------------------
Net investment           7,262                2,418          9,680            5,216               140          15,036
return
Share of associate           -                    -              -                -                29              29
Amortisation of              -                    -              -                -            (1,522)         (1,522)
goodwill & syndicate
capacity
-----------------       ------              -------         ------          -------           -------          ------

Operating profit/
(loss) based on a
longer-term
investment return
- continuing
- discontinued          22,446                    -         22,446           13,219            (5,459)         30,206
                             -               (1,332)        (1,332)               -                 -          (1,332)
-----------------       ------              -------         ------          -------           -------          ------
30 June 2003 net                                            91,446           16,982            (6,136)        102,292
assets /(liabilities)


-----------------                                           ------          -------           -------          ------






                                              Six months ended 30 June 2002 (unaudited)

                    Retail         Underwriting            Total        Broking &         Corporate            Total
                                     Commercial                         Insurance
                                                                         Services
                     #'000                #'000            #'000            #'000             #'000            #'000    
Gross written      160,695               76,376          237,071                -                 -          237,071
premiums
----------------   -------              -------           ------           ------            ------           ------
Net earned         123,508               52,824          176,332                -                 -          176,332
premiums
Net claims         (77,313)             (46,830)        (124,143)               -                 -         (124,143)
incurred
Operating          (34,874)             (22,098)         (56,972)               -                 -          (56,972)
expenses
Other income             -                    -                -           36,763              (500)          36,263
Other expenses           -                    -                -          (32,778)           (1,083)         (33,861)
(including share       
of associate)
                    ----------------------------------------------------------------------------------------------------
Net longer-term      5,387                6,445           11,832                -                 -           11,832
investment
income
Investment return        -                    -                -            5,138             2,673            7,811
on other
activities
Interest                 -                    -                -             (518)           (3,147)          (3,665)
payable                
                    ----------------------------------------------------------------------------------------------------
Net investment       5,387                6,445           11,832            4,620              (474)          15,978
return
Amortisation of          -                    -                -                -            (1,374)          (1,374)
goodwill &
syndicate
capacity
----------------   -------              -------           ------           ------            ------           ------

Operating profit/
(loss) based on a
longer-term
investment
return
- continuing        16,708                    -           16,708            8,605            (3,431)          21,882
- discontinued           -               (9,659)          (9,659)               -                 -           (9,659)
                         
----------------   -------              -------           ------           ------            ------           ------
30 June 2002 net                                          32,232           23,877             4,145           60,254
assets

----------------                                          ------           ------            ------           ------







                                                  Year ended 31 December 2002 (audited)

                       Retail       Underwriting             Total        Broking &         Corporate            Total
                                      Commercial                          Insurance
                                                                           Services
                        #'000              #'000             #'000            #'000             #'000            #'000  
               

Gross written         301,528              68,840          370,368                -                 -          370,368
premium
------------------     ------             -------          -------          -------           -------           ------
Net earned premium    259,227                   -          259,227                -                 -          259,227
- continuing
- discontinued              -              24,890           24,890                -                 -           24,890
Net claims           (160,343)            (17,312)        (177,655)               -                 -         (177,655)
incurred
Operating             (71,941)            (26,367)         (98,308)               -                 -          (98,308)
expenses
Other income                -                   -                -           62,242              (846)          61,396
Other expenses              -                   -                -          (52,951)           (4,600)         (57,551)
                       -------------------------------------------------------------------------------------------------
Net longer-term        12,806              10,358           23,164                -                 -           23,164
investment income
Investment return           -                   -                -           11,042             5,103           16,145
on other
activities
Interest payable            -                   -                -           (1,052)           (6,060)          (7,112)
                       -------------------------------------------------------------------------------------------------
Net investment         12,806              10,358           23,164            9,990              (957)          32,197
return
Amortisation of
goodwill &
syndicate capacity
and provision
against investment
in syndicate
capacity                    -                   -                -                -            (2,525)          (2,525)
------------------     ------             -------          -------          -------           -------           ------  
                         

Operating profit/
(loss) based on a
longer-term
investment return
 - continuing          39,749                   -           39,749           19,281            (8,928)          50,102
 - discontinued             -              (8,431)          (8,431)               -                 -           (8,431)
------------------     ------             -------          -------          -------           -------           ------
31 December 2002                                            77,073            7,602            (1,529)          83,146
net assets/
(liabilities)

------------------                                          -------          -------           -------           ------




The breakdown by activity shows the performance of each area of operation after
consolidation entries required to eliminate intra-group transactions. Income and
expenses within 'Broking and Insurance Services' exclude transactions with the
Group's share of Syndicate 218.


Underwriting profit and net assets are retained in trust funds within the Cox
managed syndicates until the relevant Lloyd's year of account closes, normally
after three years, and are not generally available to meet other liabilities of
the Group.


5.          Investment return

                                     Six months      Six months           Year 
                                          ended           ended          ended
                                   30 June 2003    30 June 2002    31 December
                                          #'000           #'000           2002
                                    (unaudited)     (unaudited)          #'000
                                                                     (audited)

Investment income                        17,603          19,196         39,942
Investment gains/(losses)                     -          (2,721)           382
 --------------------------------        --------        --------        -------

                                         17,603          16,475         40,324

Interest paid
                                         -------------------------------------
- bank interest                           2,758           2,932          5,706
- loan note interest                        364             405            800
- finance lease interest                      -               -             59
                                         -------------------------------------
                                         (3,122)         (3,337)        (6,565)
Investment expenses                         (25)           (328)          (547)
 --------------------------------        --------        --------        -------

Net investment return                    14,456          12,810         33,212

 --------------------------------        --------        --------        -------

Analysed as:
                                         -------------------------------------
Underwriting investment return on
a longer-term rate of return
basis (transferred to the
technical account)                        9,680          11,832         23,164
Non-underwriting investment               5,356           4,146          9,033
return                                   
                                         -------------------------------------
Net investment return on a               15,036          15,978         32,197
longer-term rate of return

Short-term fluctuations in                 (580)         (3,168)         1,015
underwriting investment return
 --------------------------------        --------        --------        -------
                                         14,456          12,810         33,212
 --------------------------------        --------        --------        -------



The transfer to the technical account represents the estimated long term rate of
return, as indicated below, applied to the Group's share of investment assets of
the syndicates and gross assets held as Funds at Lloyd's. The balance of the
investment return predominately relates to interest generated by the
distribution and premium financing operations.

                                  Six months     Six months     Year ended 31
                               ended 30 June       ended 30     December 2002
                                        2003      June 2002
                                 (unaudited)    (unaudited)         (audited)
                                                
Longer-term rate of return

UK and overseas bonds                    6.0%           6.0%              6.0%
  -----------------------------       --------       --------          --------


The longer-term rates of return were established by having regard to the
historical asset performance, current and prospective bond yields and the
estimated risk premium for holding equity investments. These rates were applied
to the average bond component of the underwriting investment assets. The net
values of these investments at the closing dates are shown below.

                                    Six months     Six months    Year ended 31
                                 ended 30 June       ended 30    December 2002
                                          2003      June 2002
                                         #'000          #'000            #'000
                                   (unaudited)    (unaudited)         (audited)
                                                  

Syndicate assets - Other               306,022        337,514          359,867
financial investments

    -----------------------------       --------       --------         --------

Gross Funds at Lloyd's                  79,237         73,346           79,295
Less syndicated debt supporting        (45,000)       (50,000)         (50,000)
Funds at Lloyd's
    -----------------------------       --------       --------         --------

Net funds supporting underwriting       34,237         23,346           29,295
at Lloyd's
    -----------------------------       --------       --------         --------


6.                  Earnings per share


Earnings per share has been calculated based on earnings of #19,088,000 (30 June
2002 - #2,610,000; 31 December 2002 - #26,074,000). A reconciliation of the
number of shares used in the calculations of the basic and diluted earnings per
share is as follows:

                                    Six months     Six months    Year ended 31
                                 ended 30 June       ended 30         December 
                                          2003      June 2002             2002
                                   Number '000    Number '000      Number '000
                                   (unaudited)    (unaudited)        (audited)
                                                  

Basic:
At beginning of period                 308,272        130,309          130,309
Movement due to weighted average
number of shares in respect of:
ESOP & QUEST shares not vested          (5,774)        (6,087)          (5,938)
unconditionally to employees
Shares issued under employee                16              -                9
share schemes
Shares issued under placing and              -         37,323          108,126
open offer
    -----------------------------       --------       --------         --------

Weighted average number of shares      302,514        161,545          232,506
during the period
    -----------------------------       --------       --------         --------

Diluted:
Dilutions in respect of:
SAYE scheme                              1,767            659            1,510
Share option scheme - shares             2,960            928            2,563
granted not yet issued
    -----------------------------       --------       --------         --------

Diluted weighted average of            307,241        163,132          236,579
shares during the period
    -----------------------------       --------       --------         --------



7.                    Investment in syndicate capacity


Investment in syndicate capacity represents the following participations in the
Cox managed syndicates:

                             Lloyd's       Lloyd's       Lloyd's       Lloyd's
                           2003 year     2002 year     2001 year     2000 year
                          of account    of account    of account    of account
                            capacity      capacity      capacity      capacity
                               #'000         #'000         #'000         #'000

Motor Syndicate 218          251,687       205,202       170,428       135,789
      ------------------       -------       -------       -------       -------

Cox corporate Syndicate            -        30,423       129,713       166,337
1208
Written in parallel
with:
Nuclear Syndicate 1176             -        23,577        23,287        21,663
      ------------------       -------       -------       -------       -------

Cox corporate Syndicate            -        54,000       153,000       188,000
1208
      ------------------       -------       -------       -------       -------

                             251,687       259,202       323,428       323,789
      ------------------       -------       -------       -------       -------


Amounts shown in italics represent the Group's participation by way of parallel
arrangements with the relevant Cox managed syndicates. Other participations are
directly with the named syndicate.


As part of the restructuring of the Group the investment in syndicate capacity
relating to the Commercial underwriting operations of the Group has been
written-off as it is considered that this capacity has no on-going value.


Cox Syndicates


Cox Insurance Holdings Plc conducted its underwriting business at Lloyd's via
three dedicated corporate Names - CDCM (No 2) Limited, CDCM Limited and Equity
Red Star Limited all of which are wholly owned subsidiaries of the Group.

CDCM Limited was the single largest Name on motor and personal lines Syndicate
218 until 30 June 2002. With effect from 1 July 2002 Equity Red Star Limited
took on the motor and personal lines business arising from that date. CDCM
Limited is the only Name on composite Syndicate 1208 and ceased to write any new
business as at 31 December 2002. CDCM (No.2) Limited was a name on Syndicate 218
for the 2000 year of account.

Funds are deposited at Lloyd's by Cox Insurance Holdings Plc on behalf of both
CDCM Limited and CDCM (No. 2) Limited and directly by Equity Red Star Limited,
in accordance with risk based capital requirements assessed by Lloyd's. The
underlying security backing the syndicates, outside of premium trust funds, is
represented by certain funds of Cox Insurance Holdings Plc itself, together with
the Lloyd's Central Fund.


8.                  Reserves

                                 Share premium    Revaluation    Profit & loss
                                       account        reserve          account
                                         #'000          #'000            #'000
Group
At 31 December 2002 (audited)           24,442            566           27,237
Retained profit for the                      -              -           19,088
period
Transfer of realised profits                 -             (6)               6
Premium on shares issued in the             46              -                -
period
  -----------------------------          -------       --------         --------

At 30 June 2003 (unaudited)             24,488            560           46,331
  -----------------------------          -------       --------         --------





9.                    World Trade Center ('WTC')


The Group's exposure to losses from the terrorist attack of 11 September 2001 in
the United States arises entirely from its participation on Syndicate 1208. The
loss is unprecedented in the insurance industry and as such calculation of
ultimate gross and net loss to the Group is subject to a greater degree of
uncertainty than for other insurance losses. Resulting claims have had a
material effect on the Group's business.


As at 30 June 2003, notifications received from the Xchanging Claims Services
remained unchanged at approximately $270m. After anticipated reinsurance
recoveries, offset by net reinstatement premiums, the Group's net notified loss
is $167m. Owing however to the uncertainties inherent in the evaluation of this
loss, the Directors have provided for a further degree of caution in arriving at
an estimate of $294m for ultimate gross loss reducing to $198m net of all
reinsurance costs and recoveries. After conversion to sterling, the resulting
net loss to the Group is currently estimated to be #120m.


The assessment of direct property losses, including related business
interruption claims, other than where buildings have been totally destroyed,
remains uncertain. Calculation of inwards reinsurance claims remains subject to
further subjective assessment because the Company must rely on estimates of loss
provided by the intermediate insurer or reinsurer.


Outstanding claim notifications received from policyholders, intermediaries and
loss adjusters remain subject to review and amendment by management as and when
further information becomes available. Loss provisions include estimates for
further claims, which may potentially be notified in the future, based upon a
comprehensive review of syndicate exposures, and assignment of probability
factors to each such exposure.


All estimates remain sensitive to a number of assumptions about the legal basis
for liability to losses from the WTC towers, which may be briefly summarised as
follows:


* It remains a matter of dispute as to whether the attack on the WTC
represents one or two losses. Having taken legal advice, management considers
that a 'one loss' basis is the correct interpretation of the contract. However,
the matter has been referred to the US courts by one of the insurers involved in
the loss for a declaration on this point. All other insurers have been brought
into that dispute, but the question seems unlikely to be resolved for several
years. If the Courts were to conclude that the attack should be deemed to be two
insured events, then the estimate of the Group's gross loss would increase by
#53.4m and the net loss by #9.3m.


* At present, provision has been made for business interruption
exposures in respect of property losses, which are known of or expected to have
happened, in the immediate vicinity of the towers. Loss estimates under risk
excess and catastrophe reinsurance policies may vary substantially if, contrary
to existing law and practice, cedents accept and settle remote "business
interruption" claims.


* Typically, where a property loss is caused by a third party, insurers
may benefit from subrogation action and resultant recovery from liability
insurers of that third party. The Group continues to explore subrogation
opportunities that exist in this case.


* Reinsurance recoveries represent the amounts expected to be
recoverable from the syndicate's reinsurers in respect of reported gross losses.
As currently estimated, gross ultimate claims will exceed the vertical limit of
the Group's whole account reinsurance protections.


* Calculation of such recoveries is particularly sensitive as to whether
or not reinsurers will follow direct writers, should the courts deem that the
attack on the WTC constitute two losses rather than one. After taking legal
advice, management consider that the likely treatment from reinsurers should not
prove disadvantageous to the Group. It remains difficult to reach a final
decision prior to resolution of the dispute and establishment of a legal ruling
regarding the underlying claim. Should reinsurers argue successfully that the
reinsurance policy should respond on a one event basis only, even though the
inwards claim was deemed to be two losses, the resulting net loss to the Company
would increase materially from the estimates currently provided.


* The amount of reinsurance recoveries remains sensitive to potential
insolvencies of reinsurers, with a current assumption that there will be no
major default.


Whilst the directors consider that the loss estimate is the best that can be
made on the basis of information currently available, it remains subject to
significant uncertainties as described above. Further information could be
received which may cause the estimate to be adjusted, either upwards or
downwards. The cost or benefit of any such future adjustments will be reflected
in the Financial Statements for the period in which the adjustments are made. It
may take a number of years to resolve these uncertainties.


Any such adjustment would be subject to the effects of the Lloyd's Agreement -
see Note 2.


10.                 Reconciliation of operating profit to net cash flow from
operating activities

                                      Six months      Six months    Year ended
                                           ended           ended   31 December
                                    30 June 2003    30 June 2002          2002
                                           #'000           #'000         #'000
                                     (unaudited)     (unaudited)     (audited)

Operating profit on ordinary              28,294           9,055        42,686
activities before tax
Depreciation of tangible fixed             1,837           1,809         4,163
assets
Amortisation of goodwill                     992             844         1,464
Loss/(profit) on disposal of fixed           214             (58)          (17)
assets
Interest payable                           3,122           3,337         6,565
Amortisation and provision for
diminution in value in
Investment in syndicate capacity             530             530         1,061
Movement in value of associate               (29)              -            30
Decrease in debtors, prepayments          28,471          41,804        20,798
and accrued income
Decrease in net technical               (108,469)        (38,350)      (83,565)
provisions
Increase/(decrease) in creditors,         10,570         (33,694)      (57,736)
accruals and deferred income
Minority interest                              -               -             2
Increase in other provisions                 385             112           337
     -----------------------------        --------        --------      --------

Net cash outflow from operating          (34,083)        (14,611)      (64,212)
activities
     -----------------------------        --------        --------      --------



Independent Review Report to Cox Insurance Holdings Plc

for the six months ended 30 June 2003


Introduction


We have been instructed by the company to review the financial information which
comprises the consolidated profit and loss account, consolidated statement of
total recognised gains and losses, consolidated cash flow statement,
consolidated balance sheet as at 30 June 2003, comparative figures and
associated notes. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.


Directors' responsibilities


The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.


Review work performed


We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom Auditing Standards and therefore
provides a lower level of assurance than an audit. Accordingly we do not express
an audit opinion on the financial information. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
the Listing Rules of the Financial Services Authority and for no other purpose.
We do not, in producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into whose
hands it may come save where expressly agreed by our prior consent in writing.

Fundamental uncertainty


In forming our review conclusion, we have considered the adequacy of the
disclosures made in the financial information concerning the material exposure
that the Group faces to the terrorist attack in the United States on 11
September 2001. Details of the circumstances relating to this uncertainty are
described in Note 9.


Review conclusion


On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.










PricewaterhouseCoopers LLP

Chartered Accountants

London

17 September 2003



Notes:


   (a)               The maintenance and integrity of the Cox Insurance Holdings
PLC web-site is the responsibility of the directors; the work carried out by the
auditors does not involve consideration of these matters and, accordingly, the
auditors accept no responsibility for any changes that may have occurred to the
interim report since it was initially presented on the web-site.


  (b)               Legislation in the United Kingdom governing the preparation
and dissemination of financial information may differ from legislation in other
jurisdictions.





Unaudited 100% Underwriting Performance

for the six months ended 30 June 2003



A summary of the performance of the 100% managed underwriting operations of the
retail business is shown below:



                                    Six months       Six months     Year ended
                                 ended 30 June    ended 30 June    31 December
                                          2003             2002           2002
                                   (unaudited)      (unaudited)    (unaudited)
                                         #'000            #'000          #'000

Gross premiums written                 257,354          282,772        526,857

Net premiums written                   232,595          241,249        466,285

Earned premiums, net of                219,180          215,897        434,363
reinsurance
-------------------                    --------         --------       --------

Claims ratio                                60%              63%            62%

Expense ratio                               26%              26%            27%

Combined ratio                              86%              89%            89%





www.cox.co.uk


A copy of this announcement, together with a copy of the presentation made to
analysts at 9.00am on 18 September, can be found on the Company's web site.







                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
IR IIFLLATITLIV