Direct Line to axe 550 jobs amid tough motor market

11th Nov 2024 07:32

(Sharecast News) - UK insurer Direct Line said it planned to axe 550 jobs as part of a turnaround plan amid continuing struggles at its motor insurance arm.

The company on Monday said motor trading conditions had been "challenging although we continued to grow policy count on price comparison websites and have worked at pace on the launch of the Direct Line brand in this channel".

"Our drive to create a leaner and more efficient operating model is advancing, with consultations currently taking place as part of a proposed reduction of around 550 roles."

Direct Line said it was targeting £50m gross costs savings in 2025. Sales from ongoing operations in the first nine months of the year rose 11.8% to £2.5bn, driven by growth of 11.4% in motor and 12.9% in non-motor.

"Another 71,000 own-brand motor customers were lost over the third quarter as premiums were 3% higher than last year on average," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"The good news is that the rate of decline in customer numbers is slowing, as insurance prices are now starting to come down after some mammoth hikes were put through earlier in the year."

Reporting by Frank Prenesti for Sharecast.com