8th November 2023
Direct Line have issued a Trading Update-highlights are:
–Total in force policies for ongoing operations up 4.9% in the third quarter, including around 725,000 Motability
–Growth of 27.6% year to date in gross written premium and associated fees for ongoing operations, driven by premium
rate increases in Motor and commencement of the Motability partnership
-Motor direct own brands average premium in Q3 up 37% compared with Q3 2022.
–Other business lines traded in line with previous trends, with premium growth in Home and Commercial Direct.
–a ssumption for 2023 claims inflation for Motor and Home unchanged at high single digits.
–Claims from weather events to date, including recent storms, are currently estimated to be within the Group's annual assumption.
–Shareholder approval obtained for sale of the Group's brokered commercial business to RSA Insurance Limited, with
initial consideration of £520mn received on 26th October 2023.
Jon Greenwood, Acting ceo of Direct Line Group, commented
“Throughout Q3 we have continued to address our three key priorities: to restore our capital resilience, improve our
performance in Motor and maintain our performance in our other businesses.
The sale of our brokered commercial business to RSA Insurance Limited strengthens our business strategically and
In Motor, we can see the pricing actions we have taken come through in strong premium growth during the quarter and
we believe we are writing profitably, consistent with a 10% net insurance margin. At the same time, we have continued to
progress our strategic agenda, launching Direct Line Essentials in Motor, which improves our competitiveness in the direct market, and we have welcomed around 725,000 Motability customers.
We are confident that the decisive actions we are taking sets the Group up for improved performance going forward."
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