Direct Line enjoys listed life after RBS with bumper rise in profits

Posted on by Listify Me

By
Daily Mail City Finance


PUBLISHED:

11:17 GMT, 2 November 2013


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UPDATED:

11:17 GMT, 2 November 2013

Direct Line Insurance advert.

Direct Line has continued to make good progress since being spun out of Royal Bank of Scotland last year, after posting a bumper rise in profits.

Britain’s biggest motor insurer, whose brands include Churchill, Privilege and Green Flag, said pre-tax profits rose by more than half to £124.2million in the three months to the end of September.  

This compared with £82.4million in the same period last year. It was boosted by better investment returns and more stable underwriting profit from selling insurance policies.

The amount Direct Line (up 3.5p to 228.5p) had to pay out in claims fell more than 9 per cent to £564.7million while investment gains doubled to £14.6million in the quarter.

The firm said it was too early to tell exactly how much it would have to pay out in claims for the St Jude’s Day storm. But it said they were likely to fall within its fourth quarter expectation of around £25million for major weather events.  

Direct Line, spun out of RBS in a £787million float last year, said it expected restructuring and other one-off costs in 2013 and 2014 to be about £220million, £30million less than expected.

The insurer said in June it planned to cut 2,000 jobs and shave £130million in annual costs by 2014.


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mcawpa,

Belfast,

9 hours ago

One of thee worst insurance companies out there. Happy to take your money, rarely pays out and always looks to see for ways out of paying up. Disgusting company

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