Takeover target Direct Line posts £189m operating loss
Direct Line Group has revealed a £189.5m loss from ongoing operations as the sale of NIG pushed the insurer into profit for 2023.
The provider, which has rejected two takeover approaches by Ageas this year, also unveiled plans to cut operating costs by £100m by the end of 2025.
The operating loss was dominated by motor business, which posted a £331.6m deficit as the combined operating ratio hit 121.1%.
According to Direct Line, it was policies priced too low in 2022 and the first half of 2023 that caused the losses, with actions having now been taken to fix the problem.
Red inkThe red ink was partially offset by profits in
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@insuranceage.co.uk or view our subscription options here: https://subscriptions.insuranceage.co.uk/subscribe
You are currently unable to print this content. Please contact info@insuranceage.co.uk to find out more.
You are currently unable to copy this content. Please contact info@insuranceage.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@insuranceage.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@insuranceage.co.uk
More on Insight
Peach and owner grow in 2025
Peach, which offers underwriting capacity to brokers, schemes and managing general agents for business insurance cover, grew in 2025 as profits at parent NPA Insurance also rose, maintaining the trends of the year before.
Ageas UK GWP jumps as Esure deal flows in
Ageas has posted a 72% hike in gross written premiums in the UK to €1.42bn (£1.21bn) for the first half of the year as the takeovers of Esure and Saga’s underwriter Acromas Insurance Company continued to kick in.
Biba and Markel AI Academy opens for applications
Members of the British Insurance Brokers’ Association can now apply to join the founding cohort of the AI Academy being offered in partnership with Markel.
Broking Success: Vista Insurance Brokers’ CEO Gavin Ruben – leader of PE niches
Gavin Ruben, CEO of Vista Insurance Brokers, has set out the goal of becoming the leader of its specialist mergers and acquisitions insurance niche, along with the other parts of the firm’s 2035 ambitions.
Blog: AI fraud is becoming a broker problem, not just an insurer problem
AI-generated documents extend the risk of fraud beyond claims settlement to the application and quote stages. Oleh Petrivskyy, founder and CEO of Binariks, explains why insurance distribution needs its own authentication mechanisms and offers four low-cost steps brokers can start with now.
Lockton brings in ex-Aviva and Gallagher leader Piper
Louise Piper has joined Lockton as a placement director in its major accounts business, working across large and complex clients.
Profile: MGAA’s Mike Keating
Mike Keating, CEO of the Managing General Agents’ Association, looks back on his career in insurance and discusses how the MGA market will continue to evolve.
Liquidators reveal estimated £9m hole at broker Anthony Jones
The liquidators of Kent-based Anthony Jones (UK) have released a statement of affairs estimating a £9.22m deficit, with numerous insurance businesses and HMRC facing potential losses, some as high as six figures, after the collapse of the broker.