Motor premiums drive DLG profits
Direct Line Group has reported a rise in pre-tax profits of 11%, with rising motor premiums more than compensating for a sharp increase in storm-related claims.
Bad weather this winter has caused damage worth £139m as storms Eva, Desmond and Frank tore through the UK. This compares to £63m the previous year, and that’s been reflected in more than double the number of weather-related claims.
But Direct Line Group, which also owns Churchill and Green Flag, was still able to report pre-tax profits of £507.5m, thanks in part to a 4.8% rise in motor to £1.4bn.
Chief executive Paul Geddes said, ‘Growth in own brands policies has contributed to overall premium growth and, alongside lower costs, has again allowed us to deliver an improved financial performance for the year.’