Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Direct Line Q1 premiums up on price hikes
(Sharecast News) - UK insurer Direct Line on Wednesday reported a large rise in first-quarter written premiums as it hammered consumers with price hikes.
Total group gross written premium and associated fees rose 10.7% to £892.2m, adding that motor claims trends were in line with expectations, with estimated written margins maintained above 10%.
The increase was helped by double-digit gross written premium growth across its home and commercial divisions, with the motor division posting an 18.3% rise to £424.3m.
In-force policies were 1.8% lower, while motor volumes also fell "due to the continued repricing of the motor book, whilst home own brands in-force policies saw modest growth" Direct Line added.
The company reiterated plans to save £100m in costs as it looks to fend off takeover interest from Belgium's Ageas, which in March had a cash-and-stock proposal worth 237p-a-share, or about £3.2bn, rejected.
"We have announced a number of significant hires over the last few weeks. I am confident that with the new leadership team in place, we can deliver run-rate annualised cost savings of at least £100m by the end of 2025 and a net insurance margin, normalised for weather, of 13% in 2026," said new chief executive Adam Winslow.
Matt Britzman, equity analyst, Hargreaves Lansdown said Direct Line's "mammoth price hikes continued over the first quarter".
"Strip out the relatively new partnership with Motabilty, and Direct Line saw 434,000 motor customers walk out the door. It's not too hard to see why. The headline figure of a 35% rise in average premiums is somewhat flattered by better rates being offered to new customers," he said.
"Anyone looking to renew motor insurance over the quarter was whacked with a 38% price hike. These are necessary for Direct Line to get its motor insurance operations back to sustained profitability, and with a new CEO and an improving market, the motor business looks to finally have a footing from which it can grow. But that's little consolation to policyholders."
Reporting by Frank Prenesti for Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.