Direct Line reveals profit jump

Insurance firm Direct Line has seen its profits jump by 20 per cent in the first nine months of 2013.

The company has revealed operating profits of £417.8 million up to September, compared with £347.9 million achieved the year before.

Direct Line – which is the UK’s biggest insurer – is responsible for the Churchill and Privilege brands and is 28.5 per cent owned by the Royal Bank of Scotland.

The results have partly come about because of a drop in the number of net insurance claims, as well as the fact that the costs associated with a planned restructuring of the business have come in around £30 million cheaper than was previously estimated.

It was announced in June that the firm would be getting rid of around 2,000 jobs as part of a wider plan to make £130 million of savings. 

The company had previously announced a further 1,200 posts would also be axed.

Direct Line’s chief executive Paul Geddes said: “Even after allowing for normal weather losses, our performance proves we are delivering our self-help agenda and making good progress towards our strategic targets.”

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