(Sharecast News) - Direct Line said on Tuesday that it swung to a full-year ongoing operating profit as the motor segment returned to profitability.
In the year to the end of December 2024, the insurer - which has agreed to be bought by Aviva - made an ongoing operating profit of £205m, versus a loss of £189.9m the year before. Direct Line put this down to a turnaround in earnings in the motor segment, which rose by £427m.
This was due to the pricing and underwriting actions taken in 2023, which continued to earn through and to a return to favourable prior year reserve development.
Direct Line said motor premiums grew 31.8% on the year, driven by its partnership with Motability, where it had a full year of premium in 2024 compared to only seven months in 2023. The company said its partnership with Motability, which accounts for around 41% of motor gross written premiums, is developing well and delivered 14% growth in policy count during the year.
Direct Line reported a drop in full-year pre-tax profit to £218.4m from £277.4m a year earlier, while gross written premiums rose 25.3% to £3.7bn.
Chief executive Adam Winslow said: "Our 2024 financial results demonstrate the significant progress we have made, so far, in transforming the business. The turnround strategy, launched in July, has made a marked difference to the company's performance, and we have good momentum across all our business lines.
"During the year we launched three new Direct Line branded motor insurance products on the largest price comparison website, Green Flag signed two new agreements, our Home business re-platformed, we further improved our pricing and underwriting capabilities, initiated a new operational structure to become a more efficient and effective organisation and overhauled our claims function in service of better customer and indemnity outcomes."
Direct Line (DLG)
