Direct Line has reported a rise in its full-year profits, as it recorded fewer home insurance claims.
The insurer also tapped into reserve releases to counter a decline in car insurance premiums, according to Reuters.
Its pre-tax profit surged by approximately 70 per cent to £312.8 million in the year that ended December 31st. For the fourth quarter, it rose 51 per cent to £90.9 million, despite the inclement weather that attacked many different areas of Britain during the festive period.
Direct Line – whose brands include Churchill, Privilege and the Green Flag roadside recovery service – said it would pay out a final dividend of 8.4 pence per share, five per cent higher than last year.
It also announced a special dividend of 4p per share, taking its total dividends for 2013 to 20.6p for each share.
RBC Europe analyst Gordon Aitken said: “We view this as an indication that the balance sheet is strong. Management is demonstrating it has no desire to hoard capital, which is rare in the European insurance sector, in our view.”