"Challenging economic conditions" see premiums slip at DLG

Direct Line Insurance Group Plc has revealed that its adjusted gross premiums have fallen amid challenging market conditions, seeing total group premiums reach £2.3bn – down 3.5% on last year’s levels.

Related topics:  insurance,  Protection
Warren Lewis
9th November 2022

Releasing its trading update for the quarter that ended September 30, the group said that during Q3 2022, adjusted GWP totals hit £807.2 million - 5.8% lower compared to last year. £383.8 million came from motor; £139 million from home; £110 million from rescue and other personal lines; and £174.4 million from commercial.

The adjusted figures equate to a 13% decline for motor and a 10.3% fall for home. Rescue and other personal lines saw a 1.9% increase and commercial was up by 13.7%.

For the first nine months of the year, the group’s adjusted GWP slid 3.5% to £2.3bn.

CEO, Penny James, said: “The pricing actions we have taken to restore margins in Motor led to a reduction in new business sales; however, we were encouraged to see this improve steadily across the quarter as the market hardened.

“Having restored our Motor targeted written loss ratios, based on our claims assumptions, we maintained these throughout the third quarter, with inflation developing in line with our expectations.”

Meanwhile, the company highlighted that it continues to make progress on improving DLG’s efficiency. Additionally, the insurer has reduced its exposure to credit risk in the firm’s investment portfolio.

James added: “We continued to work on the actions we set out at our H1 results to restore the resilience of our balance sheet, including reducing our exposure to credit risk in our investment portfolio, reducing costs, and considering the use of strategic reinsurance. We have also made good strategic progress with the deployment of further pricing capability in motor.”

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