CGNU Australia Holdings posted a net profit of $104.5 million for 2001, according to accounts lodged with ASIC. The result is the first posted by the group since its restructure last year, which came about through the merger of CGU and the local operations of Fortis. The group includes Norwich Union Australia, which operates independently.

Most of CGNU’s profit came from its general insurance operations – a very satisfying $64 million. Without the $330.3 million in one-off costs associated with the Fortis acquisition, the general insurance business would have scored an operating profit of more than $400 million.

Life insurance operations – conducted primarily through Norwich – generated $45.5 million. A $17 million boost in Norwich’s overall performance came from its funds management subsidiaries, Portfolio Partners and Navigator. This result was a significant turnaround from 2000, when it posted a net loss of $134 million.

The Navigator master fund’s business will be a key to Norwich’s future success. Latest reports suggest that a deal with Westpac to sell the Navigator product in some kind of joint venture has stalled, and may not be able to proceed.