Insurer Direct Line reports fall in policies; aims to cut costs in medium term

Credit: REUTERS/Suzanne Plunkett

Britain's biggest motor insurer Direct Line laid out new medium-term targets on Wednesday, including a plan to cut expenses by more than 50 million pounds ($64.59 million), after it reported fewer number of policies in the third quarter.

Nov 20 (Reuters) - Britain's biggest motor insurer Direct Line DLGD.L laid out new medium-term targets on Wednesday, including a plan to cut expenses by more than 50 million pounds ($64.59 million), after it reported fewer number of policies in the third quarter.

The owner of Churchill and Privilege brands aims to cut its operating expenses before amortisation and depreciation to below 590 million pounds by 2021 from 722 million pounds in the last year.

The plans, under Penny James who took on the top job this year, come as the company reported a 2.3% fall in number of policies in force to 14,837 for the three months ended Sept. 30, as it struggled to keep up with competitive pricing offered by smaller rivals.

($1 = 0.7741 pounds)

(Reporting by Muvija M in Bengaluru; Editing by Rashmi Aich)

((Muvija.M@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 3638; Reuters Messaging: muvija.m.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More