As predicted last week, giant British insurer CGNU has recorded a slightly smaller profit on last year’s figure, mainly as a result of floods in Britain and storms in Europe. Its $4.06 billion pre-tax profit was affected by a $826 million provision for storm claims.

During the past year CGNU has exited businesses in the US, Germany and the Lloyd’s market. And CEO Bob Scott says the business has been reshaped and the financial benefits are “coming through”.

CGNU insures about 20% of British homes, and like its competitors faces big bills from floods which damaged 5,000 houses late last year. It was also exposed to the catastrophic 1999 French storms.

Interestingly, CGNU also took about $385 million from the bottom line to finance further development of internet services – an indication of continued commitment to making its e-commerce strategies work.