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Insurance

Direct Line hails turnaround in motor insurance arm as Aviva vote nears

Direct Line Insurance Group PLC (LSE:DLG), which agreed in December to be taken over by Aviva, has strong growth and a turnaround in motor profitability.

For the group as a whole, an underlying operating profit of £205 million was reported for 2024, a swing from the £189.9 million loss the previous year.

This was largely due to the turnaround in profitability for the Motor arm, alongside a strong result in Non-Motor.

CEO Adam Winslow says the turnaround strategy launched last July "has made a marked difference to the company's performance, and we have good momentum across all our business lines".

With a pre-final dividend solvency ratio of 200%, the board has recommended a final dividend of 5p per share.

Shareholders are set to vote on the £3.7 billion takeover next Monday, 10 March, and if regulatory clearances are achieved without a hitch the deal is expected to become effective by the middle of the year.

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