Direct Line Insurance Group PLC has announced a refreshed strategy aimed at establishing the company as the customers' insurer of choice and delivering profitable growth. The strategy includes a focus on technical excellence in Motor insurance, with plans to launch Direct Line on Price Comparison Websites (PCWs) to reach a wider customer base. The company also aims to make disciplined decisions on capital allocation, focusing on Home, Commercial Direct, and Rescue, while exiting or stopping investment in certain partnerships and personal lines businesses.

In the Motor insurance segment, Direct Line aims to achieve sustained, profitable growth by focusing on all elements of the insurance value chain, including pricing, underwriting, customer experience, claims, and distribution. The company plans to extend its reach by launching Direct Line on PCWs, a channel preferred by around 90% of customers. This move is supported by a refreshed leadership team with a proven track record in delivering growth through PCWs.

Outside of Motor insurance, the company will focus its portfolio investment on Home, Commercial Direct, and Rescue, leveraging new capabilities and revamping product suites to drive growth. Direct Line will also exit or stop investing in certain partnerships and personal lines businesses to streamline its focus.

Direct Line aims to reduce its cost base by delivering at least £100 million in gross run-rate cost savings by exit 2025, narrowing the cost gap versus peers. The company has identified over 50 cost initiatives across technology, operations, and demand, and simplification, with plans to further reduce costs once these initiatives are realized.

The company reiterates its target of a 13% Net Insurance Margin in 2026, believing that the refreshed strategy and actions taken across pricing, claims, and costs will deliver additional margin upside. Direct Line also announced a revised capital allocation framework and policy to pay around 60% of operating earnings as a regular dividend, with the expectation of strong returns for shareholders.

CEO Adam Winslow stated, "Today, we have set out our strategy and clear targets designed to position DLG as the customers' insurer of choice. Since joining DLG just over four months ago I have rigorously reviewed our business, and listened carefully to investors, customers, and employees. This work has deepened my belief in our strong foundations and excellent potential."