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RNS Number : 8980N
Direct Line Insurance Group PLC
26 January 2023
This announcement contains inside information.
Direct Line Group announces the execution of a strategic
reinsurance arrangement
26 January 2023
Direct Line Insurance Group plc (the "Group") announces that its
principal underwriter, U K Insurance Limited, has entered into
strategic reinsurance agreements, that together comprise a 3-year
structured 10% quota share arrangement.
The contracts incept with effect from 1 January 2023 and are
expected to increase the Group's year-end 2022 solvency capital
ratio by around 6 percentage points.
The Group has been advised by Gallagher Re on these
agreements.
For further information, please
contact
PAUL SMITH WILL SHERLOCK
DIRECTOR OF BUSINESS PERFORMANCE, GROUP CORPORATE AFFAIRS AND SUSTAINABILITY
REPORTING AND INVESTOR RELATIONS DIRECTOR
Mobile: +44 (0)7795 811263 Mobile: +44 (0)7786 836562
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of the Company is Neil Manser, Chief Financial Officer.
Forward-looking statements disclaimer
Certain information contained in this document, including any
information as to the Group's strategy, plans or future financial
or operating performance, constitutes "forward-looking statements".
These forward-looking statements may be identified by the use of
forward-looking terminology, including the terms "aims",
"ambition", "anticipates", "aspire", "believes", "continue",
"could", "estimates", "expects", "guidance", "intends", "may",
"mission", "outlook", "over the medium term", "plans", "predicts",
"projects", "propositions", "seeks", "should", "strategy",
"targets", "will" or "would" or, in each case, their negative or
other variations or comparable terminology, or by discussions of
strategy, plans, objectives, goals, future events or intentions.
These forward-looking statements include all matters that are not
historical facts. They may appear in several places throughout this
document and include statements regarding intentions, beliefs or
current expectations, including of the Directors, concerning, among
other things: the Group's results of operations, financial
condition, prospects, growth, strategies, the industry in which the
Group operates and the Group's approach to climate-related matters.
Examples of forward-looking statements include financial targets
which are contained in this document specifically with respect to
return on tangible equity, solvency capital ratio, combined
operating ratio, percentage targets for current-year contribution
to operating profit, prior-year reserve releases, cost reductions,
reduction in expense ratio, investment income yield, net realised
and unrealised gains, capital expenditure, risk appetite range,
balance sheet resilience and dividend capacity; and targets, goals
and plans relating to climate and the Group's approach and strategy
in connection with climate-related risks and opportunities. By
their nature, all forward-looking statements involve risk and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future and/or are
beyond the Group's control and/or they rely on assumptions that may
or may not transpire to be correct. Forward-looking statements are
not guaranteeing future performance.
The Group's actual results of operations, financial condition
and the development of the business sector in which the Group
operates may differ materially from those suggested by or assumed
in the forward-looking statements contained in this document, for
example directly or indirectly as a result of, but not limited
to:
- United Kingdom ("UK") domestic and global economic business
conditions;
- the direct and indirect impacts and implications of the
coronavirus Covid-19 pandemic on the economy, nationally and
internationally, on the Group, its operations and prospects, and on
the Group's customers and their behaviours and expectations;
- the Trade and Co-operation Agreement between the UK and the
European Union ("EU") regarding the terms, following the end of the
Brexit transition period, of the trading relationships between the
UK and the EU and its implementation, and any subsequent trading
and other relationship arrangements between the UK and the EU and
their implementation;
- the terms of trading and other relationships between the UK
and other countries following Brexit;
- the impact of the FCA pricing practices report and any rules
and regulations arising as a result of that report and of responses
by insurers, customers and other third parties and of
interpretations of such rules by any relevant regulatory
authority;
- market-related risks such as fluctuations in interest rates,
exchange rates and credit spreads, including those created or
exacerbated by the Russian invasion of Ukraine;
- the policies and actions and/or new principles, rules and/or
regulations, of regulatory authorities and bodies, and of changes
to, or changes to interpretations of principles, rules and/or
regulations (including changes made directly or indirectly as a
result of Brexit or related to capital and solvency requirements or
related to the Ogden discount rates or made in response to the
Covid-19 pandemic and its impact on the economy and customers) and
of changes to law and/or understandings of law and/or legal
interpretation following the decisions and judgements of
courts;
- the impact of competition, currency changes, inflation and
deflation;
- the timing, impact and other uncertainties of future
acquisitions, disposals, partnership arrangements, joint ventures
or combinations within relevant industries; and
- the impact of tax and other legislation and other regulation
and of regulator expectations, interventions, enforcements, fines
and requirements and of court, arbitration, regulatory or ombudsman
decisions, judgements and awards (including in any of the foregoing
in connection with the Covid-19 pandemic) in the jurisdictions in
which the Group and its affiliates operate.
In addition, even if the Group's actual results of operations,
financial condition and the development of the business sector in
which the Group operates are consistent with the forward-looking
statements contained in this document, those results or
developments may not be indicative of results or developments in
subsequent periods.
The forward-looking statements contained in this document
reflect knowledge and information available as of the date of
preparation of this document. The Group and the Directors expressly
disclaim any obligations or undertaking to update or revise
publicly any forward-looking statements, whether because of new
information, future events or otherwise, unless required to do so
by applicable law or regulation. Nothing in this document
constitutes or should be construed as a profit forecast.
Neither the content of Direct Line Group's website (or any part
of it including any press release), nor the content of any other
website accessible from hyperlinks on the Group's website, is
incorporated into, or forms part of, this document.
LEI: 213800FF2R23ALJQOP04
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END
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