UK mutual Co-operative Financial Services (CFS) has created CIS General Insurance(CISGIL) to take responsibility for providing cover for the company's general insurance customers.
From January 15 2006, CISGIL took over insuring all new and renewable Co-operative Insurance Society (CIS) motor, home and commercial products.
While all of CIS’s life, savings and investment policies will continue to be underwritten by CIS, the company believes the creation of the new unit will help to supports its program of ongoing improvement as it establishes a more conducive operating structure.
CISGIL will have initial capital of GBP384 million with no external debt. This level of capitalization represents 65% of annualized net premiums based on the first half of 2005.
The creation of CISGIL provides even greater purpose and clarity for our general insurance operation, whose operational performance has exceeded our expectations during 2005… it is clear that our general insurance area has a bright future ahead within CFS and the right corporate structure and operating model to contribute even more, Craig Shannon, CFS business management director, commented.