Direct Line Insurance Group Plc (Direct Line Group or DLG), which is now led by an overhauled executive team, has issued its trading update for the first three months of the year.
Here’s how the Bromley-headquartered insurer fared during the quarter in terms of gross written premium (GWP) and associated fees:
|
Source of GWP and associated fees |
Q1 2024 |
Q1 2023 |
|---|---|---|
|
Motor |
£424.3 million |
£358.7 million |
|
Home |
£147.3 million |
£129 million |
|
Rescue and other personal lines |
£63.5 million |
£64.7 million |
|
Commercial direct own brands |
£71.7 million |
£62.4 million |
|
Ongoing operations |
£706.8 million |
£614.8 million |
|
Total group |
£892.2 million |
£805.7 million |
DLG’s ongoing operations exclude the brokered commercial business that was acquired by RSA Insurance last year. GWP and associated fees from the unit amounted to £155.1 million in Q1.
“We have seen a positive start to 2024 trading, with double-digit gross written premium growth in our motor, home, and commercial businesses and overall growth for ongoing operations of 15%,” DLG chief executive Adam Winslow (pictured) noted. “Claims trends and motor margins continue to develop in line with our expectations.
“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.
“I look forward to sharing our refreshed strategy to deliver higher returns and the progress we have made against the immediate priorities to improve performance at our Capital Markets Day on July 10, 2024.”
Winslow, Aviva’s former UK & Ireland general insurance CEO, took the helm at DLG on March 1. His appointment was announced in 2023 – the year Penny James stepped down as chief executive following a challenging time for the insurer.
Prior to James’ departure, DLG’s share price had taken a dive from 232.4p to 175.95p in the second week of January 2023. The plunge came after the company axed its 2022 dividend.
Last month, DLG appointed Jane Poole as chief financial officer effective in October. Last week, further leadership changes were unveiled, including the appointments of chief operating officer Hugh Hessing and claims managing director Martin Milliner.
DLG’s shares closed at 191.10p on Wednesday.
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