We have defined eight key performance indicators that allow us to assess our performance against our strategic priorities. These are supported by further performance indicators monitored by management.
The return generated on the capital that shareholders have in the business. This is calculated by dividing adjusted earnings by average tangible equity.
We aim to achieve at least a 15% RoTE.
The amount of cash paid to shareholders from the Group’s profit.
We have a progressive dividend policy and aim to increase the dividend in real terms each year. Additionally, we look to return surplus capital to shareholders when appropriate.
A measure of financial year underwriting profitability. It is the sum of the net claims, commissions and expenses divided by net earned premium. This excludes instalment and other operating income, and investment return. A combined operating ratio (“COR”) of less than 100% indicates profitable underwriting.
We aim to make an underwriting profit. For 2017, we expect to achieve a COR in the range of 93% to 95% for Ongoing operations, assuming a normal level of claims from major weather events and no further change to the Ogden discount rate.
The cost of doing business, including paying our people, marketing expenses, and spending on infrastructure and IT. This includes the costs we incur handling claims, but
excludes any commissions we pay to brokers or partners, and restructuring and other one-off costs.
We aim to reduce our expense ratio during 2017, absorbing our investment in future capability. We also aim to deliver a lower commission ratio in 2017, normalised for major weather events.
This is calculated by dividing the earnings attributable to shareholders by the weighted average number of Ordinary Shares in issue.
We have not set a target. However, growing earnings per share is considered an indicator of a healthy business.
A measure to show the level of capital held compared to the level that is required, accounting for the risks we face.
We target capital coverage to the Board’s risk appetite range of 140% to 180% of our SCR. We also aim to maintain a rating in the ‘A’ range from our credit rating agencies.
Net Promoter Score (“NPS”) is an index that measures the willingness of customers to recommend products or services to others. It is used to gauge customers’ overall experience with a product or service, and the customer’s loyalty to a brand.
We aim to improve this to achieve strong levels of customer loyalty and retention rates.
The number of complaints we received during the year as a proportion of the average number of in-force policies.
This measure indicates the level of customer service we provide. We aim to improve this over time.
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Direct Line Insurance Group plc © 2017
Registered in England & Wales No 02280426. Registered Office: Churchill Court, Westmoreland Road, Bromley, BR1 1DP
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