Gross written premiums fall at Direct Line but the insurer says it is on track to hit targets
The UK’s largest motor insurer Direct Line said today its gross written premiums fell 5.8 per cent in the last quarter, as weather related claims and intense competition took their toll.
In the three months to 30 September the insurer recorded £854.5m in gross written premiums, compared to £907.2m in the same period last year.
Its number of in-force policies fell 3.8 per cent from 15,775 last year to 15,183 this year.
However, Direct Line said it was on course to meet its 2018 and medium-term financial targets.
Chief executive Paul Geddes said: “The group’s performance during the quarter was robust in a competitive market.”
He also said: “Overall, we are making good progress on our strategic priorities and are on course to meet our 2018 and medium-term financial targets.”
Hargreaves Lansdown senior analyst Laith Khalaf said: "There’s evidence that the general insurance industry remains intensely competitive, as premium growth lagging the number of in-force policies suggests pricing is under pressure. That’s not a new trend though, and unchanged full year and medium term guidance suggests Direct Line is managing the headwind well.
"The strong growth in own brand policies across all segments is particularly pleasing, since the this should be higher margin business – helping to offset the slight increase in claims that Direct Line has reported this time round.”