Direct Line Insurance Group PLC (LSE:DLG) reported continued challenging trading conditions in motor insurance but has kept its full-year guidance in place for net insurance margin as it announced plans to axe several hundred jobs as part of cost-cutting efforts.
The FTSE 250-listed insurer grew gross written premium and associated fees by 11.8% for the nine months to the end of September, with 11.4% growth for the motor division and 12.9% in non-motor.
Motor own-brands delivered premium growth of 2.9% due to higher average premiums.
In-force policies declined across the third quarter, as Direct Line was hit by a reduction in the rate of decline and delivered 3% growth in the price comparison website channel that new CEO Adam Winslow introduced the group for the first time soon after he started in March.
Winslow hailed the growth in premiums but said "We are in the early stages of a significant turnaround and our Q3 trading is not yet fully reflective of the actions we have taken.
"In motor, trading conditions have been challenging although we continued to grow policy count on price comparison websites and have worked at pace on the launch of the Direct Line brand in this channel."
Roughly £50 million of gross cost savings are expected to be delivered by next year from changes in procurement, technology and "simplifying" the operating model, he said.
This includes axing around 550 jobs, though the company stressed some of the roles will include vacancies no longer being filled.
Meanwhile, Winslow has been joined on the board by new finance chief Jane Poole from Aviva UK, one of eight new executive leadership team members that have been hired this year.
As for the outlook, Winslow said the group continues to target 7-10% compound annual growth in gross written premiums between 2023 and 2026 in non-motor.
Shares in the group rose 0.24% in early trading.
** Update: Adds details, share price **