But the losses would be offset by the creation of 425 new jobs with the expansion of a further 11 centres, giving a net loss of 325 jobs.

The moves are part of a restructuring process due to be completed by the end of next year.

The move is designed to offer customers more specialist advice, the company said.

'Develop skills'

The 11 claims centres to be closed are at Basildon, Bristol, Cheadle, Chelmsford, Edinburgh, Nottingham, Croydon, Leeds, Northampton, Luton and Bishopbriggs, near Glasgow.

The centres being expanded are at Exeter, Glasgow, Manchester, Preston, Bradford, Cardiff, Dundee, Southend, Newcastle, Liverpool and Ipswich.

Norwich Union, part of CGNU, said it would try to find alternative jobs for staff made redundant.

Claims director Simon Machell said: "We believe these changes give our remaining staff longer-term stability and the opportunity to develop specialist skills."

Sales growth

In February CGNU announced that total operating profits for 2001 rose by 40% on the year to £2bn ($2.8bn).

The improvement was put down to strong growth in sales of life insurance and pensions.

But the company said it would cut its dividend - the annual payment to shareholders - from 38p per share to 23p to fund its expansion plans.

CGNU was created in 2000 by a merger between UK insurance groups Norwich Union and CGU.