10th Nov 2020 10:50
(Alliance News) - Direct Line Insurance Group PLC on Tuesday said it is "encouraged" by trading in the third quarter as some segments returned to growth.
The Leeds-based motor and home insurer said gross written premiums in the third quarter ended September 30 were down 0.8% year-on-year to GBP851.5 million from GBP858.0.
Chief Executive Penny James said: "We are encouraged by our trading performance in the third quarter where we saw a return to strong growth in Green Flag and Commercial and some improvement in Motor and Home own brands, particularly in the price comparison website channel as customer shopping activity started to recover."
Green Flag written premiums were up 9.6% at GBP26.2 million from GBP23.9 million a year before. Direct Line said this demonstrates the brand's competitiveness, as new business shopping increased.
Commercial written premiums were up 9.9% to GBP136.5 million from GBP124.2 million a year prior.
Motor written premiums were down 2.3% year-on-year to GBP447.2 million from GBP457.8 million. This was due to risk mix, arising from a reduction in new car sales and fewer young drivers entering the market, as well as modest market premium deflation, the company said.
Home written premiums were down 1.3% to GBP156.6 million from GBP158.6 million a year prior.
Going forward, Direct Line said: "We are currently on track to deliver a combined operating ratio slightly below our target range of 93% to 95% in 2020, normalised for weather. We also reiterate our medium-term combined operating ratio target, however we acknowledge this will inevitably depend on the duration and uncertainties of the Covid-19 pandemic, the impact of Brexit, the FCA pricing practices report and any consequential impact on customer, market and regulatory approaches."
The FTSE 250 stock was down 1.7% to 286.30 pence each in London on Tuesday morning.
By Greg Roxburgh; [email protected]
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