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5 months ago
BRIEF-Direct Line sees lower profit before tax after Ogden rate cut
February 27, 2017 / 8:56 AM / 5 months ago

BRIEF-Direct Line sees lower profit before tax after Ogden rate cut

1 Min Read

Feb 27 (Reuters) - Direct Line Insurance Group Plc:

* Expects to recognise new discount rate in financial statements; also within solvency 2 ratio calculation for year ended 31 dec 2016

* Confirms it expects to achieve its guidance of combined operating ratio of towards lower end of 93 pct-95 pct range adjusted for normal weather for fy

* New discount rate to reduce 2016 profit before tax by £215 million -£230 million after reinsurance recoveries

* Estimates impact of moving to new discount rate to reduce year end solvency II capital coverage ratio before dividends, to higher end of 140-180 pct

* Announcement has left open possibility of further changes implications of which have not been included within group's solvency calculation

* Estimates that impact of moving to new discount rate to increase combined operating ratio for ongoing business by approximately 6 ppts Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +91 80 6749 1136)

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