Following on from Hiscox’s own financial report earlier this morning, Direct Line has now revealed its results for the first nine months of 2017.
During the period, the direct insurer enjoyed a 4.2% rise in GWP as it reached £2.6 billion compared to £2.5 billion one year earlier. Part of the success has come from a considerable rise in insurance premiums across the industry – the Association of British Insurers reported that the average price of motor insurance climbed 10% in the third quarter meaning premiums now stand at their highest levels since 2012.
In addition, however, Direct Line has also benefited from the government’s decision to change the personal injury discount rate – that after an initial planned cut had hit insurers’ profits and sent premiums to record levels.
The company enjoyed particular success in its motor business with Reuters stating that in-force policies under the Churchill, Direct Line and Privilege brands, as well as its Green Flag rescue breakdown policies, collectively climbed by 5.5% compared to the same period a year ago.
However, the insurer admitted it will rework some elements of capital expenditure and that could mean an impairment charge that tops the £39.3 million it incurred during 2016. Yet despite this it still expects its combined operating ratio to be in the range of 93-95%.
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