Reflecting the difficult market conditions, CIS' total premium income fell in 2003 to £1,784 million, from almost £2 billion at the end of 2002. Total premium and unit trust income decreased to £1,971 million, a fall of 11%. Profit Before Tax from our general insurance business (excluding short-term investment fluctuations) rose to £61.7 million compared with £27.5 million in 2002. The result, including short-term investment fluctuations, was a Profit Before Tax of £134.6 million compared with a pre-tax loss of £257.5 million in 2002.
Total operating costs fell by £22 million to £470 million whilst the amount of money we manage on behalf of our investors rose over the same period, by £1.6 billion to £19.1 billion. CIS' life and savings business recorded a transfer to the Fund for Future Appropriations of £322 million compared with a transfer from reserves during the previous year of £1.2 billion.
CIS has maintained the dividend on co-operative society business at the same rates as in previous years, resulting in a distribution of £3.3 million to the societies that trade with us.
