Direct Line profits rise as claims decrease
Direct Line has reported a big increase in profits for the first half of 2015, after improved weather conditions led to fewer claims.
The group said it saw lower costs due to fewer claims being made and reported a pre-tax profit rise to £315m, up 49% from £211.7m a year earlier.
The company also reported a 5.9% increase in the price of motoring in the last year. Direct Line’s share price increased nearly 2% on news of the results.
It said ‘motor and home markets remain highly competitive’ but that cost-cutting during the period helped profits.
Over the past two years the car insurance industry has seen insurance premiums fall as regulators have clamped down on false insurance claims. According to Direct Line, its own ‘efficient claims management is contributing to the group’s aim to beat claims inflation.’