Edition:
India

Direct Line Insurance Says Cold Weather Hurts Profit


Wednesday, 1 Aug 2018 

Aug 1 (Reuters) - Direct Line Insurance Group PLC ::INTERIM DIVIDEND 7 PENCE PER SHARE.H1 GROSS WRITTEN PREMIUM 1,610.3 MILLION STG VERSUS 1,694 MILLION STG YEAR AGO.STRATEGIC PROGRESS ON TRACK.H1 COMBINED OPERATING RATIO 93 PERCENT VERSUS 88.6 PERCENT YEAR AGO.H1 OPERATING PROFIT 303.1 MILLION STG VERSUS 359.7 MILLION STG YEAR AGO.H1 SOLVENCY CAPITAL RATIO POST-DIVIDEND - ESTIMATED 169% VERSUS 165%.MOTOR DIVISION GREW IN-FORCE POLICES 2.1% IN YEAR TO 4.0 MILLION AND PREMIUMS GREW 1.9% TO £839.8 MILLION IN H1.REITERATE OUR FINANCIAL TARGETS.HY UNDERWRITING PROFIT FELL TO £108.6 MILLION PREDOMINANTLY DUE TO £75 MILLION OF WEATHER CLAIMS MAINLY ASSOCIATED WITH MAJOR FREEZE IN Q1 2018.PREMIUM RATES CONTINUED TO FALL Q-ON-Q, ADJUSTING RATIONALLY TO GOVERNMENT'S PROPOSALS TO REVISE PROCESS FOR SETTING OGDEN DISCOUNT RATE.MINDFUL OF DELAY TO GOVERNMENT'S WHIPLASH PROPOSALS, NOW EXPECTED TO TAKE EFFECT IN APRIL 2020, 12 MONTHS LATER THAN PREVIOUSLY INDICATED.FOR 2018, GROUP EXPECTS TOTAL INVESTMENT RETURN IN REGION OF £150 MILLION.REITERATION OF 2018 CURRENT FINANCIAL TARGETS AND OVER MEDIUM TERM OF ACHIEVING COMBINED OPERATING RATIO IN RANGE OF 93% TO 95%.