ILC ARTICLE

DLG sets cost-cutting target after mixed results


Direct Line Group has announced it is aiming to cut costs by at least £100m next year after publishing mixed annual results for 2023.

It reported operating losses of £189.5m, following losses of £6.4m in 2022, although the sale of RSA drove pre-tax profits up to £277.4m by the end of 2023.

Meanwhile, gross written premiums were up from £2.44bn in 2022 to £3.11bn.

The results were announced after two offers of acquisition from Ageas, both of which were rejected.

DLG Chief Executive Officer Adam Winslow said, “The group has not always managed volatile market conditions successfully in recent years, particularly in motor.

“However, it is clear that decisive actions taken over the last year has created a strong platform for recovery, including significant pricing and underwriting actions to improve our motor margins and the sale of our brokered commercial business.

“While the picture has improved, we need to do more to drive performance and we have identified immediate actions we can take to in 2024 to create value.”

He continued, “We are currently running a comprehensive strategy review of the significant opportunities we see to deliver higher returns. With the right strategy in place and determined actions, I am confident that we can deliver run-rate annualised cost savings of at least £100m by the end of 2025 and a net insurance margin, normalised for weather of 13% in 2026.”

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