Direct Line Insurance Group (DLG) CMD 2024 summary

Strategic Priorities and Group Strategy

• Refreshed strategy and leadership team focus on technical excellence, cost competitiveness, and a performance-driven culture to restore leadership in core markets: motor, home, commercial direct, and rescue.

• Direct Line will launch on price comparison websites (PCWs), targeting the 90% of customers who shop via this channel, with a bespoke product suite to regain market share and drive profitable growth.

• Non-core areas, such as OEM affinity motor partnerships, pet, travel, and other personal lines, will be exited or have investment ceased, focusing capital on areas with clear competitive advantage.

• Home, commercial direct, and rescue lines are targeted for accelerated growth, leveraging new technology platforms, data analytics, and expanded product offerings.

• Transitioning to a simpler, performance-oriented operating model with end-to-end accountability and regular progress updates.

Motor Business Transformation

• Motor strategy centers on technical pricing, underwriting, claims excellence, and digital customer journeys, with over 20 initiatives underway.

• Direct Line Motor will launch on PCWs to fully embrace market trends and broaden distribution.

• Ambition to increase motor retention by 5+ percentage points over 18 months via improved customer experience and digital journeys.

• Claims transformation program includes 29 initiatives, focusing on cost control, fraud detection, and leveraging owned repair centers for efficiency.

• Team rebuild since 2023 has brought in top talent from leading competitors, with a new operating model emphasizing accountability and rapid execution.

Non-Motor Business Growth Plans

• Home insurance will leverage a new technology platform, advanced pricing, and cross-sell opportunities, with digital tools to improve conversion and retention.

• Commercial direct aims to expand in landlord, SME, and micro-SME segments, increase PCW presence, and target underserved markets with enhanced analytics.

• Rescue business (Green Flag) will scale its owned patrol fleet from 30 to over 300 vehicles, targeting growth in partnerships and direct channels for efficiency and market share.

• Combined, non-motor businesses are expected to grow gross written premium by 7%-10% per annum.

• Disciplined capital allocation to maximize shareholder returns across all non-motor lines.