Direct Line boss steps down

(Sharecast News) - The chief executive of Direct Line Insurance Group has stepped down, just two weeks after the insurer scrapped its dividend and sent the stock plummeting.

The FTSE 250 firm said Penny James would step down with immediate effect, with chief commercial officer Jon Greenwood named interim chief executive.

Earlier in January, Direct Line said December's cold snap had pushed up the costs of claims and scrapped its dividend. The move saw the shares lose around a quarter of their value.

Direct Line had first cut its profitability outlook in July, when it also cancelled a planned buyback.

Originally chief financial officer, James was appointed chief executive in May 2019. Danuta Gray, chair, said: "During her time as chief executive, Penny has overseen significant strategic progress, transforming the technology and capability across the business.

"She also deserves credit for the way she led the business through the pandemic."

James said: "While the business was impacted by significant headwinds at the end of 2022, the group has continued to make strategic progress. I am proud of what the business has delivered for customers."

Direct Line said it would now initiate a process to identify and appoint a successor.