Direct Line unveils plans to boost growth.


Direct Line is to put its flagship motor brand on price comparison websites for the first time, the insurer said on Wednesday, as part of a wider strategy intended to boost profits and cut costs.

Source: Sharecast

Unveiling the "refreshed" strategy at its capital markets day, DLG acknowledged that around 90% of customers preferred to shop on price comparison sites.

"In motor, we aim to deliver technical excellent across the value chain and meet customers where they shop," it said.

"We aim to deliver sustained, profitable growth in motor by focusing on all elements of the insurance value chain, pricing and underwriting, customer experience, claims and distribution."

Outside of motor, DLG said it would focus on home, commercial direct and rescue, and exit or stop investing in OEM affinity motor partnerships, pet, travel and other personal lines businesses.

It will also seek £100m in gross run-rate cost savings by 2025, and plans to pay round 60% of operating profits as a regular dividend.

New chief executive Adam Winslow said he had "rigorously reviewed" the business since joining just over four months ago.

He continued: "Putting our strongest brand, Direct Line, on price comparison websites…means we will be shaking up the motor insurance market once again.

"However, DLG is about more than just motor, and we have ambitious plans to grow in home, rescue and commercial direct.

"Our refreshed strategy will be delivered by our new executive team, who have significant expertise in our core markets."

Founded in 1985, DLG revolutionised the insurance market by bypassing brokers and selling direct to customers.

In recent years it put some brands on price comparison sites, including Churchill and Privilege, but up until now had refused to feature its biggest brand.


Exchange: London Stock Exchange
Sell:
282.20 p
Buy:
282.80 p
Change: -1.60 ( -0.56 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.