Direct Line Regulatory News (DLG)

Board changes and withdrawal of AGM resolution

The Board of Direct Line Insurance Group plc ('DLG' or the 'Company') announces that it has resolved to make the following changes to the membership of the Board and the chairmanship of Board Committees.

Chief Financial Officer ('CFO')

We announced on 11 January 2021 that Tim Harris, CFO, would be taking a leave of absence while a member of his family undergoes medical treatment. Unfortunately, it is likely that the medical treatment will continue for longer than had been hoped and, in the circumstances, Tim wishes to prioritise his family and has decided to retire as an Executive Director and as CFO of DLG. As a result, Tim will not seek re-election at the AGM today.

Neil Manser, Chief Strategy Officer, former Managing Director of DLG's commercial business, NIG, and former Director of Investor Relations, has been Acting CFO since January 2021. The Board has resolved to appoint Neil as an Executive Director and CFO, and as a member of the Investment Committee, with effect from the conclusion of the AGM today.

Withdrawal of AGM resolution

As DLG's AGM Notice has already been issued, DLG confirms that the resolution to re-elect Tim Harris as an Executive Director of the Company (resolution number 6) is now withdrawn. The withdrawal of resolution number 6 does not otherwise affect the validity of the Notice of Meeting, the proxy form or any proxy votes already submitted on other proposed resolutions. The numbering of all other proposed resolutions at the AGM will remain unchanged.

Board Committee chairmanship

The following changes will also take effect from the conclusion of the AGM today.

Mark Gregory, independent Non-Executive Director, will become Chair of the Board Risk Committee, succeeding Jane Hanson, who will be stepping down from the Board, as announced on 21 December 2020. Mark will relinquish his chairmanship of both the Remuneration Committee and the Investment Committee but will remain a member of both Committees.

Richard Ward, Senior Independent Director, will become Chair of the Remuneration Committee.

Fiona McBain, independent Non-Executive Director, will become Chair of the Investment Committee.

Commenting on the changes, Danuta Gray, Chair, said: 'On behalf of the DLG Board and all our colleagues, I would like to thank Tim Harris for the exceptional contribution he has made as CFO since 2019 and to wish him and his family the very best. The Board warmly welcomes Neil Manser as our new CFO. Not only has Neil proven himself to be extremely capable while acting as CFO during Tim's leave of absence but he has also held a number of senior roles across the business, giving him a deep understanding of capital markets, strategy and the culture of the Group.'

Neil Manser, CFO-designate, said: 'I have held a number of leadership positions within DLG, in Finance, in running DLG's Commercial business, NIG and, most recently, developing and driving forward the strategy which we launched at the Capital Markets Day. I have seen at first hand the quality of DLG's business model and the dedication of its talented people. I am proud and excited to be taking over from Tim as CFO at a time when we are grasping the opportunities made possible by our significant investment in capability.'

This announcement is made in compliance with the Company's obligations under Listing Rule 9.6.11.

Notes

1. Neil Manser will receive an annual salary of £515,000 and a pension allowance of 9% of salary. He will also be able to participate in the Company's existing annual incentive plan up to a maximum of 175% of salary and the long term incentive plan up to 200% of salary per annum. All remuneration arrangements are consistent with the terms of the Director's Remuneration Policy approved by shareholders at the AGM in May 2020.

2. No other information is required to be disclosed pursuant to paragraph 9.6.13R of the Listing Rules in relation to Neil's appointment as a Director of the Company.

For further information please contact:

Roger Clifton

Company Secretary

Email: roger.clifton@directlinegroup.co.uk

For investor and media enquiries please contact:

Louise Calver

Investor Relations Manager

Tel: +44 (0) 1651 832 877

Lisa Tremble

Group Corporate Affairs and Sustainability Director

Tel: +44 (0) 7795 234 801

LEI: 213800FF2R23ALJQOP04