Direct Line reports slight rise in gross premiums
By Frank Prenesti
Date: Tuesday 09 Nov 2021
(Sharecast News) - Insurer Direct Line reported a slight rise in third quarter gross written premiums as motor claims severity inflation rose.
Gross written premium increased for the three months to September 30 rose 0.7% to £857.1m. Motor direct own brands written premiums fell to £426.2m from £434.2m as the division continued to price for claims severity inflation in second-hand vehicles.
"We continue to expect our Motor current-year attritional loss ratio in the second half of the year to return closer to underlying 2020 levels of around 79%," the company said on Tuesday.
Commercial written premiums grew 12% and green flag rescue written premiums increased 9.2%.
The group affirmed its medium-term target of a combined operating ratio in the range of 93% - 95% normalised for weather.
Motor claims frequency continued to trend towards the level assumed in the company's pricing whilst claims severity inflation was "slightly above" its 3 to 5% medium-term expectations, the company said.
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