7th Nov 2023 09:57
(Alliance News) - Direct Line Insurance Group PLC on Tuesday reported significantly increased written premiums, and strong trading in its Motor division, during the latest quarter.
The Bromley, England-based motor and home insurer said total gross written premiums and associated fees soared 59% to GBP1.28 billion in the third quarter of 2023, and by 27% to GBP2.97 billion in the first nine months of the year.
In the FTSE-250 company's Motor arm, gross written premiums more than doubled in the third quarter to GBP826.8 million, while Home premiums increased 3.9% to GBP144.4 million. Direct Line credited increased premium rates in the Motor division, as well as its partnership with Motability Operations Ltd which commenced in early September.
"In Motor, we can see the pricing actions we have taken come through...and we believe we are writing profitably, consistent with a 10% net insurance margin," said acting Chief Executive Officer Jon Greenwood. "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."
Greenwood also noted the recent sale of Direct Line's brokered commercial business to RSA Insurance Ltd, for which it received the initial GBP520 million consideration in late October. Greenwood said the disposal "strengthens our business strategically and financially".
He continued: "We are confident that the decisive actions we are taking sets the group up for improved performance going forward."
Direct Line shares were up 3.8% at 163.60 pence on Tuesday morning in London.
By Emma Curzon, Alliance News reporter
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