Direct Line Insurance Group PLC trading update for Q1 2024

Adam Winslow, CEO of Direct Line Group, commented

"We have seen a positive start to 2024 trading, with double digit gross written premium growth in our Motor, Home and Commercial businesses and overall growth for ongoing operations of 15.0%. Claims trends and Motor margins continue to develop in line with our expectations.

"We have announced a number of significant hires over the last few weeks. I am confident that with the new leadership team in place, we can deliver run-rate annualised cost savings of at least £100 million by the end of 2025 and a net insurance margin, normalised for weather, of 13% in 2026.

"I look forward to sharing our refreshed strategy to deliver higher returns and the progress we have made against the immediate priorities to improve performance at our Capital Markets Day on 10th July 2024."

Trading summary

Trading update

• Gross written premium and associated fees for ongoing operations up 15.0% on Q1 2023 with strong growth in Motor, Home and Commercial direct.
• In-force policies were 1.8% lower. As expected, Motor volumes were lower due to the continued repricing of the Motor book, whilst Home own brands in-force policies saw modest growth.
• Motor claims trends in line with expectations, with estimated written margins maintained above 10%.
• Q1 saw several periods of adverse weather which led to around £33 million of weather claims in Home, of which £24 million was event related, compared with our annual event assumption in Home of £54 million. 

For further information, please contact
PAUL SMITH DIRECTOR OF BUSINESS PERFORMANCE AND INVESTOR RELATIONS		ALAN OLIVER GROUP COMMUNICATIONS
Email: paul.r.smith@directlinegroup.co.uk		Email: alan.oliver@directlinegroup.co.uk
Mobile: +44 (0)7795 811263		Mobile: +44 (0)7385 481295

APPENDIX 1: Gross written premium and associated fees

​	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
	£m	£m	£m	£m	£m
Gross written premium and associated fees
Motor direct own brands2,5	400.1	422.0	435.1	391.3	352.9
Motor partnerships3,5	24.2	40.3	391.7	8.7	5.8
Motor	424.3	462.3	826.8	400.0	358.7
Home direct own brands2	110.5	118.1	107.2	89.1	94.4
Home partnerships	36.8	36.3	37.2	34.6	34.6
Home	147.3	154.4	144.4	123.7	129.0
Green Flag Rescue	20.3	16.5	27.7	21.5	19.4
Other Rescue and other personal lines	43.2	42.0	48.5	44.9	45.3
Rescue and other personal lines	63.5	58.5	76.2	66.4	64.7
Commercial direct own brands2	71.7	58.8	63.0	56.8	62.4
Ongoing operations4	706.8	734.0	1,110.4	646.9	614.8
Brokered commercial insurance4	155.1	174.7	137.5	196.7	156.9
Run-off partnerships4	30.3	43.3	34.5	38.3	34.0
Total Group	892.2	952.0	1,282.4	881.9	805.7

APPENDIX 2: In-force policies by segment⁴ (thousands)

​	31 Mar 2024	31 Dec 2023	30 Sep 2023	30 Jun 2023	31 Mar 2023
Motor direct own brands2	3,235	3,373	3,441	3,607	3,669
Motor partnerships3	837	808	795	66	72
Motor	4,072	4,181	4,236	3,673	3,741
Home direct own brands2	1,721	1,706	1,686	1,705	1,731
Home partnerships	729	738	748	759	765
Home	2,450	2,444	2,434	2,464	2,496
Green Flag Rescue	1,036	1,048	1,062	1,093	1,073
Other Rescue and other personal lines	1,069	1,124	1,134	1,196	1,275
Rescue and other personal lines	2,105	2,172	2,196	2,289	2,348
Commercial direct own brands2	641	645	652	645	643
Ongoing operations4	9,268	9,442	9,518	9,071	9,228
Brokered commercial insurance4	281	286	291	293	287
Run-off partnerships4	2,543	2,224	2,221	2,199	2,187
Total Group	12,092	11,952	12,030	11,563	11,702

APPENDIX 3: Motor and Home average premium (£)

​£	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023
New business	599	594	588	532	478
Renewal	515	513	480	412	373
Motor direct own brands6	541	537	507	445	401
New business	238	212	214	204	188
Renewal	261	259	257	249	230
Home direct own brands	257	249	250	243	224

Notes:

(1).    The Trading Update relates to the three months ended 31 March 2024 and contains information to the date of publication.

2.   Direct own brands include in-force policies for Motor under the Direct Line, Churchill, Darwin, Privilege and By Miles brands, Home under the Direct Line, Churchill and Privilege brands and Commercial direct policies under the Direct Line and Churchill brands.

3.   Motor partnerships includes the Motability partnership, which started on 1 September 2023, and resulted in significant growth in the third quarter of 2023. From 2024, the majority of Motability gross written premium is recognised twice a year on 1 April and 1 October. As the Motability contract is a fleet contract, customer numbers are used to allow a more representative presentation of the Group's in-force policies.

4.   Ongoing operations – the Group's ongoing operations result excludes the results of the brokered commercial business, that it sold to RSA Insurance Limited in 2023, and the Rescue and other personal lines partnerships that the Group first excluded from its 2022 results. Relevant prior-year data has been restated accordingly.

5.   Gross written premiums for the By Miles brand which were previously reported within Motor partnerships have been reallocated to Direct Own Brands. There is no impact on in-force policies.

6.   Excluding the By Miles brand.