Direct Line Insurance Group PLC Trading Update re 2017 Preliminary Result (4705E)
09 February 2018 - 11:02PM
UK Regulatory
TIDMDLG
RNS Number : 4705E
Direct Line Insurance Group PLC
09 February 2018
09 February 2018
Trading update: 2017 preliminary result ahead of market
expectations
Direct Line Insurance Group plc (the "Group") today issues a
trading statement (unaudited) in respect of the year ended 31
December 2017 ahead of the preliminary results announcement on 27
February 2018
Financial highlights
The Board anticipates that the Group will report:
-- Operating profit from Ongoing operations of circa GBP610m and
profit before tax of circa GBP540m (2016: GBP403.5m and
GBP353.0m)
-- Operating profit from Ongoing operations reflecting good
results in Motor and Commercial, including from prior year reserve
releases, lower than expected weather claims and a GBP57m
impairment to IT intangible assets; Profit before tax also reflects
a strong run-off result and a one-off charge related to the
refinancing of debt in November 2017
-- An estimated Group solvency capital ratio of between
circa185% and circa 190% of Solvency Capital Requirements(1)
("SCR"), before final dividend, reflecting lower capital
requirements and better than expected profits. As at 31 December
2017 surplus above SCR is estimated to be circa GBP1.2bn
-- Gross written premium of circa GBP3.40bn (2016: GBP3.27bn)
and approximately 350,000 more direct own brand(2) in-force
policies at 31 December 2017
-- A combined operating ratio for Ongoing operations of circa 92% (2016: 97.7%)
-- An underlying expense ratio and commission ratio lower than prior year
The Group expects to operate around the middle of its Solvency
II capital ratio risk appetite range of 140% to 180% of the Group's
SCR. The Board will consider any return of capital and will
announce this with the Group's preliminary results on 27 February
2018.
Paul Geddes, CEO of Direct Line Group, commented
"I'm proud of the Group's performance in 2017, as our customers
continued to respond positively to the multiple initiatives we have
made to improve the business, helping to grow our direct own brand
premiums and in-force policies. The combination of our operating
performance and favourable claims result has delivered financial
results ahead of market expectations. Therefore we are publishing
our headline results early and look forward to giving more details
on the progress of the business in our preliminary results on 27
February 2018."
Inside information
This document contains inside information for the purposes of
Article 7 of the European Union Regulation 596/2014.
For further information, please contact:
Andy Broadfield Lisa Tremble
Director of Investor Head of External Affairs
Relations
Tel: +44 (0)1651 Tel: +44 (0)1651 834211
831022
Notes:
1. Estimates based on the Group's Solvency II partial internal model.
2. Direct own brands include Home and Motor under Direct Line,
Churchill and Privilege brands, Rescue under the Green Flag brand
and Commercial under the Direct Line for Business brand.
3. LEI: 213800FF2R23ALJQOP04
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTTLMBTMBAMBLP
(END) Dow Jones Newswires
February 09, 2018 07:02 ET (12:02 GMT)
Direct Line Insurance (LSE:DLG)
Historical Stock Chart
From Apr 2024 to May 2024
Direct Line Insurance (LSE:DLG)
Historical Stock Chart
From May 2023 to May 2024