Direct Line has revealed a cost-cutting plan that’s anticipated to result in 550 job losses.
The insurer, whose manufacturers additionally embody Churchill and Privilege, stated alongside its third quarter outcomes {that a} “series of initiatives” aimed to ship a further £50m of value financial savings subsequent 12 months.
They included the deliberate discount in roles, which equated to about 5% of its whole workforce of about 10,000 employees.
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Direct Line’s motor insurance coverage division has been struggling in a troublesome market.
Whereas aggressive value hikes have helped the agency mitigate the impact of rising declare prices, they’ve additionally turned clients away to cheaper rivals. Most of them are on-line operators with decrease value bases.
Complete gross written premium and related charges reached £835.9m over the three months to the tip of September.
That was down from the £1.3bn seen in the identical interval final 12 months.
On a 12 months to this point foundation, the determine was virtually 3% up.
The UK-focused insurer has been trying to reinvigorate its enterprise underneath a turnaround technique launched by chief govt Adam Winslow.
“We are in the early stages of a significant turnaround and our Q3 trading is not yet fully reflective of the actions we have taken,” he instructed traders.
He stated the extra value financial savings could be delivered by means of enhancements in procurement, expertise and a simplified working mannequin.
Direct Line fended off a £3.17bn takeover try by Belgian rival Ageas earlier within the 12 months.
Shares, that are 8% down within the 12 months to this point, opened in optimistic territory.
They have been 0.6% larger in early offers.
Matt Britzman, senior fairness analyst at Hargreaves Lansdown, stated of the replace: “One other 71,000 own-brand motor clients have been misplaced over the third quarter as premiums have been 3% larger than final 12 months on common.
