5. Direct Line Insurance/ Privilege Insurance Co/ UK Insurance (Royal Bank of Scotland)

Gross written premiums less treaty (2000): £1,806.8m

Includes gross written premiums less treaty for:
Direct Line Insurance £1,367.3m
Privilege Insurance Co £265.8m
UK Insurance £173.7m

Direct Line Insurance

Gross written premiums less treaty (2000): £1,367.3m
Year established: 1984
Address:
Direct Line House
3 Edridge Road
Croydon
Surrey
CR9 1AG
Tel: 020 8686 3313
Fax: 020 8667 0560
Website: www.directline.com

History: Direct Line began in 1984 when four businessmen, led by the company's former chief executive Peter Wood, used their experiences in the insurance and IT industries to take a fresh look at private motor insurance. Their view - that traditional insurers had lapsed into a culture of complacency typified by overpricing and underservice - provided the stimulus for a new perspective on the industry. They focused on the consumer and developed an idea that brought new standards for simplicity, service and value for money into the industry.

Following a search for companies to back their proposals, an agreement was reached with The Royal Bank of Scotland, which provided initial funding of £20m for Peter Wood's plans and on
April 2, 1985, Direct Line opened its telephone lines to the British public. Today, the Direct Line Group remains a wholly-owned subsidiary of The Royal Bank of Scotland and now has over three million customers.

When it sold its first policy over the telephone in 1985, Direct Line took its first step towards revolutionising the UK motor insurance market. Recognising customers wanted simplicity, service and value for money, the firm dispensed with the middleman and introduced sophisticated computer systems to make transactions swift and simple.

Customers can now arrange not just insurance, but credit cards, loans, savings, mortgages and even buy a new car over the phone or via the internet.

Chief officer: Annette Court
Biography: Annette Court was appointed chief executive of Direct Line in April 2001. The group includes Green Flag, the Direct Line and Privilege insurance brands, jamjar.com and the international businesses in Spain, Japan (Yasuda Direct) and the recently acquired motor insurance operations of Allstate in Italy and Germany.

Court joined Direct Line in 1994 as central planning manager and subsequently in 1996 was appointed to the role of motor business manager where she took responsibility for the revenue and profitability of Direct Line's motor insurance business.

In July 1997, she became managing director, motor insurance. In 2000, Direct Line was re-organised into its current divisional structure and Court became managing director of Direct Line Insurance, with responsibility for all direct business, including Direct Line Rescue, Direct Line Life and Privilege branded consumer business.

UK branch offices: Six regional offices: Bristol, Birmingham, Leeds, Manchester, Glasgow, and Croydon

UK staff: 8,500
Main classes of general insurance business: Motor, home, breakdown, travel, pet.
Key general insurance personnel:
Graham Ross, managing director, Direct Division
Andy Watson, managing director, General Insurance
Steve Treloar, motor business manager
Malcolm Cooper, home business manager
Nick Cole, rescue business manager
Tony Chilcott, travel business manager
Chris Price, pet business manager

Privilege Insurance Company

Gross written premiums less treaty (2000): £265.8m
Year established: 1994
Address:
Direct Line House
3 Edridge Road
Croydon
Surrey
CR9 1AG
Tel: 0845 246 0311
Website: www.privilege.com

Main classes of general insurance business:
Non-standard motor and household insurance.

UK Insurance

Gross written premiums less treaty (2000): £173.7m
Year established: 1974
Address:
PO Box 300
Leeds
LS99 2LZ
Tel: 0113 255 3831
Fax: 0113 236 1045
Website: www.ukinsurance.ltd.uk

History: Formed in 1974, UK Insurance (UKI) is a specialist insurer based in Leeds, authorised to write almost all classes of business. Operating as a virtual insurer, the company provides third-party intermediaries with capital, underwriting expertise and the legal vehicle to write legitimate insurance schemes under their own brand names.

UK Insurance has strong ties with its sister company Green Flag Motoring Assistance and underwrites its repair and recovery service for vehicles following mechanical breakdown. This currently generates approximately 80% of all UKI's gross premiums.

Main classes of business: Travel, extended warranty, creditor, legal expenses, schemes.