Direct Line Insurance Group PLC (LSE:DLG) new boss Adam Winslow said recently the insurer “is about more than just motor”
Well, Winslow has the chance to demonstrate that in next week's interim and reiterate his commitment to paying out around 60% of post-tax operating profit for the regular dividend, “with any additional capital returns to be reviewed annually alongside our full-year results”.
One of his changes already is to put Direct Line onto price comparison websites for the first time which, according to the company, is “the channel where around 90% of customers prefer to shop”.
The insurer said it will stop investing in affinity motor partnerships and other personal line businesses to save £100 million in cost savings by 2025.
So far the jury is out with the shares down 12% since the end of May but US bank Citi recently became a fan.
Citi sees the underlying motor trends as favourable with UK Motor claims improving, but the US bank sees a big contribution from non-motor.
The bank has more confidence in restructuring given the extent of people change and has raised its 2026 EPS estimate by 12%.
Half-year results are on Wednesday 4 September with UBS expecting a group profit before tax of £73 million.