Direct Line Insurance Group PLC has reported a positive start to its trading in the first quarter of 2024. The company's CEO, Adam Winslow, expressed confidence in the new leadership team's ability to deliver cost savings and improved margins. The trading update for Q1 2024 revealed a 15.0% growth in gross written premium and associated fees for ongoing operations, with strong growth in Motor, Home, and Commercial direct. In-force policies for ongoing operations were 1.8% lower, mainly due to the continued repricing of the Motor book, while Home own brands in-force policies saw modest growth.
Motor claims trends were in line with expectations, with estimated written margins maintained above 10%. The company also noted adverse weather periods in Q1, leading to around £33 million of weather claims in Home, of which £24 million was event-related. Direct Line Insurance Group PLC aims to deliver run-rate annualized cost savings of at least £100 million by the end of 2025 and a net insurance margin, normalized for weather, of 13% in 2026. The company plans to share its refreshed strategy and progress against immediate priorities at its Capital Markets Day on 10th July 2024.
The trading update also provided detailed financial information, including gross written premium and associated fees, in-force policies by segment, and Motor and Home average premium. The company's ongoing operations saw a 15.0% growth in gross written premium and associated fees, with strong growth in Motor, Home, and Commercial direct. The report also highlighted the performance of different segments, such as Motor, Home, and Commercial, providing a comprehensive overview of the company's Q1 2024 trading performance.