11^th November 2024

• Gross written premiums up 5.5% over first 9 months

• Average motor premiums up 3% from Q3 2023

• Medium-term targets reiterated

Matt Britzman, senior equity analyst, Hargreaves Lansdown:

“Direct Line is looking to cut around 550 jobs as the insurance giant continues to battle with internal demons and a tough trading environment. Cutting costs is one angle of attack to try and bring performance back on track, the other angle must come from stabilising the customer base, especially in the all-important motor division. Another 71,000 own-brand motor customers were lost over the third quarter as premiums were 3% higher than last year on average. The good news is that the rate of decline in customer numbers is slowing, as insurance prices are now starting to come down after some mammoth hikes were put through earlier in the year.

It’s no secret that Direct Line has struggled over the past few years to deal with a challenging motor insurance market, and operational missteps have weighed on performance. But armed with a new leadership team, a more refined strategy, and new growth angles like the relaunch on price comparison sites, this looks like the best version of Direct Line for some time. Whether it’s able to deliver all that’s promised remains to be seen.”