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Direct Line Announcement of Offer Price

The offer price has been set at 175 pence per Ordinary Share, implying a total market capitalisation of Direct Line Group £2,625 million.

Third Quarter Interim Management Statement

Highlights

· Gross written premium for ongoing operations1 5.0% lower for the first nine months of 2014 compared with the same period of 2013, reflecting lower gross written premium in Motor and Home, partially offset by growth in Commercial

· Motor in-force policies 0.7% lower than the previous quarter with prices stable in the third quarter of 2014

· Improvement in personal lines capability through new websites, delivery of a number of pricing projects and a new advertising campaign and propositions for the Direct Line brand. Launched self-install telematics proposition in Motor

· Total cost base2 for the nine months ended 30 September 2014 6.0% lower than for the first nine months of 2013. On track to achieve targeted total cost base2 of approximately £1,000 million in 2014. Investment income yield increased by 20 basis points on the first nine months of 2013 to 2.3%, reflecting actions to diversify the portfolio

· Announced a binding agreement with Mapfre, S.A. for the sale of the Group's International division for cash sale proceeds of €550.0 million (£430.1 million3). It is expected that substantially all of the net proceeds will be returned to shareholders

· Group expects the combined operating ratio for ongoing operations1 to be within the range of 95% to 97% including the benefit of significant reserve releases. Motor current-year loss ratio in the second half of the year is expected to be similar to the first half of 2014

Regulator warns British insurers over reserves

Preliminary Results

Financial highlights

· Gross written premium from ongoing operations1 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 ratio2 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 equity3 of 16.8% for 2014 (2013: 16.0%)

· 4.8% increase in final4 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)

Strategic and operational highlights

· All Initial Public Offering and 2014 published targets either met or exceeded: Group combined operating ratio; Commercial combined operating ratio; total cost base5; and return on tangible equity

· Ongoing investment in capability supporting profitability across Group with all divisions now making a material contribution

· Announced binding agreement for the sale of International division for €550 million (£430.1 million6)

· Continued active capital management with 24.6% of Initial Public Offering price already returned to shareholders, rising to 31.9% when the final4 and second special interim dividends are included. This excludes the expected return of capital associated with the sale of the Group's International division

· Focus on UK reaffirmed with clear strategic aim of making insurance much easier and better value for customers

Interim Management Statement for the first quarter of 2015

Highlights

· Gross written premium for ongoing operations1 0.9% lower with stable gross written premium in Motor

· Motor and Home in-force policies stable for a second successive quarter. Growth in Green Flag direct and Commercial eTrade and direct

· Continued investment in initiatives to improve customer experience and propositions including roll out of new quote and buy digital journey for Home products and removal of amendment fees for the Direct Line brand

· Total costs reduced by 10.1% to £220.7 million and on track to reduce costs in absolute terms in 2015

· Reiterate expectation to achieve a combined operating ratio2 in the range of 94% to 96% for ongoing operations after normalising for claims from major weather events

StockMarketWire.com
Insurance group Direct Line's underwriting profits rose to £153.2m for the six months to the end of June, up from £58.7m. Profit before tax from continuing operations rose to £315.0m from £211.7m and after-tax profits increased to £427.8m from £175.6m.

Gross written premium from ongoing operations rose 0.4% to £1,552.0 million (first half 2014: £1,546.0 million). Motor and Home own brand in-force policies broadly stable.

Other highlights:
- Return on tangible equity3 of 21.2% for the first half of 2015 (first half 2014: 14.9%). Profit before tax for continuing operations1 increased to £315.0 million (first half 2014: £211.7 million)

- Results benefited from an absence of claims from major weather events and higher than expected reserve releases together with improved operating efficiency. Underlying trends remain broadly in line with prior expectations

- Interim dividend per share of 4.6 pence representing growth of 4.5% over 2014 interim dividend

Chief executive Paul Geddes said: "Our first half performance shows the benefits of the many improvements that we continue to make to our business. Customers have reacted positively to the refreshed propositions for Direct Line and Churchill, as well as better customer service. This has led to increased retention rates and, in particular for the Direct Line brand, improved Net Promoter Scores. Together, this has helped us to hold our gross written premium flat in competitive markets.

"At the same time, our efforts on efficiency have improved our expense ratio, while improvements in claims and pricing continue to support strong reserve releases from previous years and a good loss ratio so far this year. Action on our investment portfolio has contributed to improving our yield, despite the low interest rate environment.

"With the completion of the International disposal, we are now totally focused on UK general insurance, and our capital and reserves remain strong. We are busy improving our efficiency, propositions and technology to make insurance much easier and better value for our customers."

Direct Line posted a 3.1% increase in total written gross premiums for the three months to 30 September, led by a 6.8% in Motor. That came alongside a 7% drop in total costs for ongoing operations, while investment income yield rose to 2.4%. The insurer reiterated its expectation for a full year 2015 combined operating ratio of between 92% to 94% after normalising for major weather events.

Nomura today downgrades its investment rating on Direct Line Insurance Group PLC (LON:DLG) to neutral (from buy) and left its price target at 400p.

Direct Line Insurance has estimated insurance claims from its customers for the series of storms in December will total between £110m to £140m. Severe flooding in parts of the UK followed Storm Desmond on December 5 to 6, Storm Eva on Christmas Eve, and Storm Frank on December 28 and 29, with the FTSE 100 company saying home claims were estimated at between £80m and £100m, which commercial claims are expected to be between £30m and £40m.

StockMarketWire.com
Direct Line Insurance Group's operating profit from ongoing operations increased to GBP520.7 million in 2015 - up from GBP506.0 million last time).

The combined operating ratio from ongoing operations was 94.0% for 2015, an improvement of 1.0 percentage point.

Gross written premium from ongoing operations rose by 1.7% to £3,152.4 million, with 4.8% growth in Motor for 2015 and 7.1% in the fourth quarter. Motor and Home own brands in-force policies up 1.4%.

Chief executive Paul Geddes said: "Our customers are benefiting from the many improvements we've been making, including new propositions and enhanced customer service. This has resulted in more customers coming to our brands and renewing with us.

"Growth in own brands policies has contributed to overall premium growth and, alongside lower costs, has again allowed us to deliver an improved financial performance for the year. Operating profits are up and return on tangible equity is well ahead of our target, despite the bad weather at the end of the year. We've also continued to grow regular dividends and announced another special dividend.

"To meet our ambition of being at the forefront of the fast-moving, ever-changing insurance landscape, we are focused on building on this momentum by investing in our people, brands and systems."

Deutsche Bank today reaffirms its buy investment rating on Direct Line Insurance Group PLC (LON:DLG) and raised its price target to 450p (from 420p).

Also 18p div, on the 10/3/16. Overwieght rating.

What do you think harry, you in for 18p div? dropped to 398p at mo can't make up my mind whether to wait till next week and see if it drops anymore or get in now.

BB - Attractive for stellar income

Thanks Skinny, worth a punt I hope.

Have been watching this for ages, but somehow never invested. Insurance companies are a bit of a mystery to me (even though living in Aviva City) so tend to avoid stuff I don't understand.

I've had that problem with women!

lol.

Ah, that's your problem skinny....trying to understand them! Pay your premium and when things go wrong just hope it all turns out ok.

My Mrs never gave me a dividend....... just chores.... ;))

Hopefully a bit of a sector fillip tomorrow!