Direct Line Insurance Group PLC (LSE:DLG) reported a strong performance in the third quarter as rising prices supported more than doubled premium growth in its Motor division.
The online insurance firm said in the three months to September, Motor gross written premiums rose by 115.4% from last year to £826.8 million.
Home gross written premiums climbed 3.9% to £144.4 million compared to a year ago, taking total group gross written premiums 58.9% higher at £1.28 billion.
Jon Greenwood, acting chief executive, said: "In Motor, we can see the pricing actions we have taken come through in strong premium growth during the quarter and we believe we are writing profitably, consistent with a 10% net insurance margin.”
Total in force policies for ongoing operations rose 4.9% in the third quarter, including around 725,000 Motability customers, the firm said.
Direct Line said expectations are for 2023 claims inflation for Motor and Home to remain unchanged at high single digits while claims from weather events to date, including recent storms, are currently estimated to be within the group's annual assumption.
"We are confident that the decisive actions we are taking sets the group up for improved performance going forward,” said Greenwood.