Direct Line Insurance Group PLC (LSE:DLG) (Direct Line Insurance Group PLC (LSE:DLG)) reported lower first-quarter total gross written premiums, though the year-on-year trading decline was "broadly in line with expectations".
The insurance company saw pricing pressures and increased claim inflation in the period though a combined operating ratio of 93-95% (costs and claim/premiums) is still the group's goal.
Gross written premiums and service fees fell 2.4% to £734.3mln in the first quarter, with the biggest reduction coming from Home, although all divisions apart from Commercial declined.
The number of in-force policies was lower by 8.7%.
"In an important quarter for Motor and Home markets, prices adjusted for the introduction of the FCA pricing practices review, but we believe have not fully reflected claims inflation," said Penny James, chief executive.
"In this context, we achieved a lot, pushing forward key elements of the strategy, increasing customer retention in Motor and Home and delivering double-digit growth in Commercial. Trading was broadly in line with our expectations."
Drops in Motor (5.4%), Home (9.9%), and Rescue (2.2%) were offset by the 11.6% gain in Commercial premiums.
Shares in Direct Line fell 6.8% to 238.20p.