31st Oct 2014 07:38
LONDON (Alliance News) - Direct Line Insurance Group PLC Friday said it is on track to meet its financial targets for the year, despite reporting a fall in third-quarter gross written premium.
In a statement, Direct Line said gross written premium from ongoing operations fell to GBP928.0 million in the quarter ended September 30, compared with GBP977.7 million in the corresponding period last year, citing falls across its business lines of motor, home, rescue and other personal lines, and commercial.
The group said insurance market trends in the third quarter were similar to those seen in the second quarter, namely that the motor market experienced a second successive quarter of pricing stability whereas the home market saw further premium deflation.
Direct Line reiterated its aim of achieving a combined operating ratio in the range of 95% to 97% for ongoing operations in the current financial year, assuming a normal level of claims from weather events, and a combined operating ratio of less than 100% for its commercial division, also assuming a normal level of claims from weather-related events and large losses.
The group is targeting a cost base of about GBP1.00 billion in 2014.
"Progress in the third quarter means we remain on track to deliver our 2014 financial targets, despite a backdrop of markets that remain highly competitive. We are working hard to enhance our propositions and I am particularly pleased with how we are harnessing technology to improve our product features and make it easier for our customers to interact with us," Chief Executive Paul Geddes said in a statement.
"Looking forward, we remain focused on improving our efficiency and the competitiveness of our offering in this ever-changing marketplace," Geddes added.
By Samuel Agini; [email protected]; @samuelagini
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