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Direct Line restates £100mln cost-cutting ambitions

Published 08/05/2024, 07:47
Updated 08/05/2024, 08:10
© Reuters.  Direct Line restates £100mln cost-cutting ambitions
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Proactive Investors - Direct Line Insurance Group PLC (LON:DLGD) has published a first-quarter trading update that focused on the numbers rather than the takeover speculation that has engulfed the motor insurance firm this year.

Total gross written premiums and associated fees for ongoing operations rose by 15% year on year in the first quarter.

Motor saw an 18.3% increase in premiums to £424.3 million, while the smaller home and commercial segments increased 14% and 15% respectively.

Motor claims trends and margins developed as expected, with estimated written margins maintained above 10%.

Firm-wide in-force policies were 1.8% lower year on year, with the motor segment the main culprit due to “the continued repricing of the motor book”.

Chief executive Adam Winslow reiterated his intention to bring costs down dramatically at the FTSE 250-listed group.

“We have announced a number of significant hires over the last few weeks. I am confident that with the new leadership team in place, we can deliver run-rate annualised cost savings of at least £100 million by the end of 2025 and a net insurance margin, normalised for weather, of 13% in 2026,” he stated.

Read more on Proactive Investors UK

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