Direct Line Group first quarter results to 31 March 2014
Interim Management Statement for Direct Line Insurance Group plc
Results for the first quarter to 31 March 2014
Direct Line Group’s Interim Management Statement relates to the first quarter ended 31 March 2014 and contains information to the date of publication.
Highlights
- Continued progress on delivery of the Group’s strategic development, including completing the roll-out of smartphone and tablet optimised websites for Motor, full launch of self-install telematics offering and launch of DLG Legal Services
- Gross written premium (at constant currency) for ongoing operations1 5.1% lower for the first quarter of 2014 compared with the first quarter of 2013, reflecting competitive market conditions in UK personal lines, partially offset by growth in Commercial and in Germany
- Motor gross written premium 10.2% lower compared to the first quarter of 2013. Motor prices reduced by 4% year-on-year, supported by positive claims trends and
technical pricing initiatives - Home major weather event claims of approximately £60 million in the first quarter of 2014, lower than the previously announced estimate of £70 to £90 million; Commercial major weather event claims of approximately £20 million, as previously indicated
- Investment income yield of 2.2% for the first quarter of 2014 (first quarter 2013: 2.0%), reflecting the positive effect of portfolio actions
- Reiterate 2014 aim to achieve a combined operating ratio in the range of 95% to 97% for ongoing operations, assuming a normal level of weather claims
Paul Geddes, CEO of Direct Line Group, commented
“It was another busy quarter for us as we continued to progress strategic initiatives throughout the business. We have improved our digital capability, developed customer propositions and extended our product offering. We are also excited by the launch of a new self-install telematics product. It’s a robust, cheaper alternative to black box technology and it enables us to offer the benefits of telematics to a wider group of customers. We plan to continue investing in initiatives that improve how we interact with customers and boost our competitiveness in what remains a highly competitive market.”
For further information, please contact:
Neil Manser
Director of Corporate Strategy and Investor Relations
Tel: +44 (0) 1651 832183
Jennifer Thomas
Head of Financial Communications
Tel: +44 (0) 1651 831686
Note
1. Ongoing operations include Direct Line Group’s ongoing segments: Motor, Home, Rescue and other personal lines, Commercial and International. It excludes the Run-off segment and restructuring and other one-off costs.
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