Direct Line unveils plans to boost growth

10th Jul 2024 07:57

(Sharecast News) - 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.

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.