Direct Line avoids profit warning like peers and posts steady third quarter results
Direct Line posted a steady set of results for the third quarter, despite premiums falling 5.8%.
The group’s gross written premium fell from £907.2 (Q3:2017) to £854.5m this quarter - but that was expected following a £51.3m hit from exiting the home insurnace provision for Nationwide and Sainsbury’s.
Direct Line is not the only insurer to feel the challenges in home - Hastings claims inflation issues caused a share price drop and Hiscox revealed it needed rate action in the troubled home market.
On non-partnership brands, Direct Line managed to just slightly grow home 0.9% to £115.3m. Retention levels improved but new business felll, despite FCA regulation designed to encourage customers to shop around with old and new premiums clearly stated.
Motor fell slightly by 1.2% to £456.4m. Policies were up, but average premiums fell due to changes to propositions at price comparison sites.
Claims inflation was at the upper end of its expectation of between 3% and 5%.
Chief executive Paul Geddes said: “The group’s performance during the quarter was robust in a competitive market.”
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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