8th Nov 2022 11:02
(Alliance News) - Direct Line Insurance Group PLC on Tuesday said its trading during the third quarter of 2022 was broadly in-line with its expectations, given a challenging market backdrop for its Motor and Home segments.
In the three months ended September 30, the London-based insurer reported adjusted gross written premiums totalling GBP807.2 million, down 5.8% against GBP857.1 million the previous year.
In its Motor segment, adjusted gross premiums written fell 13% year-on-year to GBP383.8 million from GBP440.9 million. In its Home segment, this dropped 10% to GBP139.0 million from GBP154.9 million.
Direct Line said it saw reduced new business early in the quarter for Motor as it increased prices to restore margins. In Home, the company said retention was strong, but added that the new business market remained "very challenging" for the firm.
Growth in its adjusted gross premiums written was recorded both for its Rescue & Other Personal Lines segment and its Commerical segment, however.
In Rescue, adjusted gross premiums written rose 1.9% to GBP110.0 million from GBP107.9 million, while in Commerical this rose by 14% to GBP174.4 million from GBP153.4 million.
Direct Line said its current underwriting performance is in-line with expectations, based on its latest view of inflation.
However, it said that the full-year combined operating ratio is now expected to be around 98%, or moderately above, due to changes in the phasing of recognition of prior-year reserve releases.
"In these challenging economic conditions, the business is strong and actions we have taken continue to underpin the group's future earnings power," said Penny James, chief executive.
Shares in Direct Line Insurance were down 2.2% at 195.00 pence on Tuesday morning in London.
By Heather Rydings; [email protected]
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