Quantcast

Direct Line premiums slide

0

Direct Line’s insurance premiums dropped in the first quarter due to “tough” competition, overall premiums fell by 2.1% to £753.9m due to higher claims.

Premiums in the motor insurance division declined by 4.2% to £386.9m compared to £404m for the same period in 2018.

Home insurance arm that includes Churchill and Privilege Brands were stable with a 0.6% hike in premiums to £96.6m.

Due to “continued run-off on certain contracts” the home partnerships fell by 5.7% to £44.6m.

Green Flag and Direct Line sectors reported strong growth in premiums of 15.8% and 8.1% respectively.

Green Flag saw premiums increase by 1.7% to £105.4m and Direct Line’s commercial arm saw growth rise by 1.2% to £120.4m.

Penny James, chief financial officer takes over as chief executive on Thursday from Paul Geddes the outgoing boss after 10-years.

James said, “The first quarter was characterised by significant operational progress in a tough trading environment.

“The motor market remained highly competitive, with market premiums failing to keep pace with claims inflation.

“The home market has been slightly less challenging than motor but remained competitive.”

In early morning trading on Wednesday shares dropped by 1.8% to 311.8p.




Share.