Direct Line has had a good 2016 so far – the insurer has today posted a 4.2% rise in gross written premiums for the first nine months of the year,
Reuters reports.
The company said the rise, which meant gross written premiums for the period totalled £2.5 billion, was mainly due to a strong performance from its motor brands.
The total was slightly above its expectation of £2.48 billion, according to a company-supplied consensus forecast.
The insurer said it was on track to reach a combined operating ratio at the lower end of its 93-95% target range.
Brands under the Direct Line umbrella include
Churchill, Green Flag and Privilege.
Auto insurers have been under pressure in recent years, amid increasing competition and the growth of price-comparison sites, but rates in the last few quarters have increased – with the rise in premium taxes having an influence, according to the report.
The AA’s latest Premium Index report showed a
16.3% rise in motor insurance prices compared to the previous year, and an increase of 3.7% in the third quarter compared to the second.
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