Chairman Mike Biggs is calling it quits but not until his successor is named at Direct Line Insurance Group Plc (DLG), which today (March 03) revealed reduced profits for 2019.
In separate regulatory filings this morning, the Bromley-headquartered enterprise released its preliminary results for the past year and also announced its chair’s intention to step down from the board in 2020. It was noted that Biggs will stand for re-election in May and will stay until a smooth handover is carried out.
“It has been my immense privilege to serve as chairman of Direct Line Group since before the company’s listing on the London Stock Exchange in 2012,” commented the outgoing chair.
“As I am now approaching the ninth anniversary of my appointment, and as our new senior management team is now firmly established, I believe that the time is right for the company to be searching for my successor.”
That process is now being led by senior independent director Dr Richard Ward.
Lower numbers
In the year ended December 31, 2019, DLG posted a 12.2% decrease in its profit before tax to £509.7 million. Profit after tax, meanwhile, fell 11% to £419.9 million.
In addition, the company’s underwriting profit saw a 10.7% drop to £232.1 million while its operating profit, at £546.9 million, went down 9.8%.
The insurance group also saw a decline, albeit just a slight one, in its gross written premium (GWP) for the year. From £3.21 billion previously, GWP slid to £3.20 billion in 2019.
DLG’s final dividend, however, rose 2.9% to 14.4 pence. A share buyback of up to £150 million, which is expected to complete by the end of July, has also been launched.
