Direct Line Insurance Group PLC (LSE:DLG) CEO Adam Winslow has unveiled new profit and cost-saving targets amid bid interest from Belgian rival Ageas.
The UK motor insurer revealed on Thursday it recovered to a pre-tax profit of £277 million last year, from a loss of £302 million in 2022. That said, it still managed to undershoot consensus forecasts marginally.
Direct Line's bottom line was aided by increased insurance prices, which improved underwriting margins. The sale of its brokered commercial business allowed for the reinstatement of a dividend of 4p per share.
Winslow announced plans for significant cost reductions and improved claims management, aiming for £100 million in annual savings by next year and setting a rigorous underwriting profit target for 2026.
This comes against the backdrop of rebuffed interest from Ageas, which offered £3.1 billion, which DL says undervalues its business.