Direct Line Insurance Group PLC

Latest Results (22.11.2025):

Direct Line Insurance Group PLC — full year 2024 results (year ended 31 December 2024, covering Q4 2024): the Group reported a strong turnaround driven by Motor returning to profitability and disciplined underwriting. Gross written premiums rose 25% to £3,731.9m and ongoing operating profit improved by £395m to £205.0m, producing a positive insurance service result of £104.6m and a net insurance margin of 3.6%. The Board has proposed a final dividend of 5.0p and the pre-final dividend solvency ratio was 200%. The results also reflect an agreed recommended cash-and-share offer from Aviva announced in December 2024.

Top-line growth

Gross written premium and associated fees (ongoing operations) increased 25.3% to £3,731.9m, led by a 32% rise in Motor (including Motability) and 11% growth in Non-Motor.

Profitability and margins

Ongoing operating profit moved from a £189.9m loss in 2023 to a £205.0m profit in 2024 (+£394.9m). Insurance service result improved to £104.6m (from -£212.0m) and net insurance margin rose 12.3 percentage points to 3.6%.

Group P&L and EPS

Group profit before tax was £218.4m (down £59.0m versus 2023, which benefited from a £444m gain on the sale of the Brokered commercial business). Basic earnings per share were 11.2p (2023: 15.9p).

Capital, solvency and dividend

Pre-final dividend solvency capital ratio was 200% (pre-dividend), up from 192% in 2023; the Board recommended a final dividend of 5.0p, taking total dividends to 7.0p for the year (2023: 4.0p).

Costs and efficiency

The Group executed £50m of run-rate gross cost savings in 2024 (full benefit expected in 2025) and remains on track for at least £100m gross run-rate savings by end-2025; headcount reduction of about 550 roles was noted as part of simplification.

Investments and balance sheet

Investment income rose to £200m (2023: £139m) with a Group net investment yield of 4.1%. Tangible NAV increased 10% to £1,362m and overall NAV grew to £2,138m.

Operational and strategic progress

Key operational wins include launching three Direct Line motor products on Compare the Market, home re-platforming, new pricing models and data enrichment for Motor, launch of new apps (c.300k downloads), expansion of Rescue patrols and exit/reshaping of non-core travel and run-off activities.

M&A — Aviva recommended offer

Direct Line and Aviva reached agreement on a recommended cash-and-share offer valuing each Direct Line share at 275p and the Group at ~£3.7bn, subject to regulatory approvals (PRA, FCA, CMA); shareholder meetings were scheduled for 10 March and the transaction was expected to become effective mid-2025, subject to clearance.