Direct Line share price: Group releases preliminary full-year results

on Mar 3, 2015
Updated: Oct 21, 2019
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Direct Line Insurance Group (LON:DLG) today released its preliminary full-year results for the year ended 31 December, 2014.

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**Highlights from the company’s statement include:**
Gross written premium from ongoing operations 3.8% lower for 2014 compared with 2013, reflecting disciplined approach to underwriting in Motor and Home. Gross written premium trends improved during the year with gross written premium increasing 0.4% in the fourth quarter compared with 2013. Combined operating ratio from ongoing operations of 95.0% for 2014, an improvement of 0.2 percentage points on 2013 (95.2%) including stable contribution from prior-year reserve releases of £397.6 million (2013: £395.8 million).

Stable operating profit from ongoing operations of £506.0 million for 2014 (2013: £509.9 million); while total Group statutory profit before tax for continuing operations rose 12.2% to £456.8 million (2013: £407.3 million)• Return on tangible equity of 16.8% for 2014 (2013: 16.0%). 4.8% increase in final dividend per share to 8.8 pence per share and second special interim dividend of 4.0 pence per share. Total dividends for 2014 of 27.2 pence per share (2013: 20.6 pence per share)

Paul Geddes, CEO of Direct Line Group, wrote as part of the release:
“At the time of our IPO in 2012 we announced four targets for 2014, and I am delighted to report that we have met or exceeded all of them. After paying the regular and special dividends for 2014, we will also have returned a total of £836 million to shareholders since we began life as a public company.
“We also announced a binding agreement for the sale of our International business for total cash sale proceeds of€550 million (£430 million), as we reaffirmed our strategic focus on the UK market. This is a good result for all our stakeholders, including providing excellent value for shareholders.
“Underlying this performance is the successful delivery of many initiatives to improve the competitiveness of our business and to improve the propositions and experience we offer our customers. We will continue to invest in our brands, our technology and our people with the mission to make insurance much easier and better value for our customers.”
As of 07:27 GMT, Tuesday, 03 March, Direct Line Insurance Group PLC share price is 330.50p.

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