DLG key figures hit by end of deals with Nationwide, Sainsbury
Direct Line Group reported gross written premium fell in the first half as a result of exiting home insurance partnerships with Nationwide Building Society and Sainsbury.
The slide in results came as DLG announced that chief executive Paul Geddes will be stepping down in a year’s time.
GWP overall fell to £1.61bn from £1.69bn a year ago, though direct own-brand GWP rose to £1.10bn from £1.06bn.
Operating profit fell to £303m from £360m, though the company said that, normalised for weather, operating profit was up slightly.
Group COR rose to 93.0% from 88.6%.
Pretax profit for the period fell to £294m from £341m.
“This is a good set of results,” Geddes said. “Growing our own brand polices and profits (normalised for weather) in a competitive, albeit to date, rational market – again showing the strength of our business model.”
He said the performance “gives us the confidence in our outlook, for us to reiterate our financial targets.”
DLG is targeting a COR of 93-95% adjusted for normal weather and assuming no further change to the Ogden discount rate.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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