2023-09-07 06:37:04
Insurance group Direct Line posted losses for the first half of this year on Thursday and reiterated that annual profit would continue to be affected by rising motor insurance claims.
The auto and home insurer said in a statement that it will assess the performance of its auto business in the second half of 2023 to ensure actual performance is in line with pricing assumptions.
High inflation, supply chain issues following the COVID-19 pandemic and the war in Ukraine have driven up auto repair costs, impacting insurers’ margins.
The company’s operating loss for ongoing operations for the six months ending June 30 was 78.3 million pounds ($97.90 million), compared with a profit of 197 million pounds ago. a year.
The company also added that it expects better operating profit in 2024 as auto margins improve due to higher premium prices.
On Wednesday, Canadian property and casualty insurer Intact Financial said it would buy Direct Line’s commercial insurance brokerage business for an upfront payment of £520 million to expand its UK RSA unit.
Last month, Direct Line named Aviva senior executive Adam Winslow as CEO. ($1 = 0.7998 pounds) (Reporting by Radhika Anilkumar and Khushi Mandowara in Bengaluru; Writing by Rashmi Aich)
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