30th Aug 2023 13:52
(Alliance News) - Investors are hoping that Direct Line Insurance Group PLC's new boss Adam Winslow will add some light into the motor and home insurer.
Direct Line on Wednesday named former Aviva PLC UK boss Winslow as its new chief executive officer, succeeding interim CEO Jon Greenwood.
"Direct Line's new chief executive looks like a safe pair of hands. Adam Winslow joins from Aviva and is well versed in the challenges facing the UK general insurance market," said AJ Bell's Russ Mould.
The Bromley, England-based company said Greenwood will work with Winslow when he picks up the role, to ensure a smooth handover and transition.
Greenwood will remain acting CEO until Winslow joins in the first quarter of 2024. The firm said Greenwood plans to step back from his executive career.
Penny James stepped down suddenly as Direct Line CEO in January, after Direct Line said it wouldn't pay a final dividend for 2022 due to a big increase in weather-related claims that pushed it into a loss on underwriting. Chief Commercial Officer Greenwood was appointed as acting CEO.
However, Victoria Scholar, head of investment at interactive investor, pointed out that "even after her departure, shares continued to suffer and are down around 28% year-to-date."
Direct Line shares fell 0.2% to 160.45 pence each on Wednesday afternoon in London.
Mould added: "Direct Line has struggled over the past year or so due to unfavourable weather causing a spike in home insurance claims and inflationary pressures making it more expensive to support car insurance customers. Winslow will need to find ways to improve Direct Line's balance sheet and reinvigorate the brand."
Mould noted, however, that the new CEO seems like a "safe pair of hands."
Winslow has led Aviva's UK & Ireland general insurance business since 2021, where Direct Line said he developed a "clear strategy for both personal and commercial lines which has delivered market share expansion and improved profitability". Prior to joining Aviva, Winslow was CEO of Global Life at AIG Life & Retirement.
Chair Danuta Gray said: "The board conducted an extensive search and Adam Winslow stood out for his strategic understanding of the sector, outstanding track record of leading high-performing businesses and his focus on driving operational excellence to consistently meet customer needs.
"The board and I look forward to working with Adam in providing high-quality insurance to our customers through our platform of powerful brands and targeting attractive and sustainable returns for shareholders."
Direct Line's first half results will be released on September 7.
By Sophie Rose, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Related Shares:
Direct LineAviva