(Alliance News) - Direct Line Insurance Group PLC on Tuesday said it saw gross written premiums fall on a three-month and nine-month basis as the insurer makes progress on its strategy.
Direct Line's shares were down 2.7% to 280.40 pence each in London on Tuesday morning.
The Bromley, Kent-based motor and home insurer reported a total gross written premium in the third quarter of 2021 of GBP857.1 million, down 0.7% from GBP851.5 million last year.
In the nine months to September 30, total gross written premiums came in at GBP2.41 billion, down 0.8% from GBP2.43 billion a year prior.
Chief Executive Penny James said: "We have made strong progress in executing our strategy and have begun to see improved pricing competitiveness in Motor as a result of the capability delivered by our new platform. We have also successfully launched an electric vehicle proposition for our Direct Line brand, which helps make the switch to electric easier for our customers and builds on our expertise in this growing market."
Looking ahead, Direct Line reiterated its medium-term target of achieving a combined operating ratio in the range of 93% to 95%, normalised for weather.
"Our transformation progress, delivery of new propositions and improved competitiveness, combined with our focus on disciplined underwriting, mean we are well placed as we look ahead and we reiterate our combined operating ratio target of 93% to 95% over the medium term," the firm said.
For 2021, following lower than normal claims frequency in the Motor division and strong prior-year reserve releases, the company continues to expect a combined operating ratio in the range of 90% to 92%, normalised for weather.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Direct Line (DLG)