Anthony O. Golianov
Direct Line Insurance Group PLC said Tuesday that new business sales fell in the third quarter as it raised prices to restore margins in its auto division.
The London-listed property and casualty insurer said it nevertheless improved its market position throughout the period as premium rates in the market accelerated.
According to the company, retention rates in the Home segment remain high, adding that market conditions for new business remain very challenging.
Adjusted gross premiums written, excluding exceptional and other one-off items, decreased from £857.1m in Q3 2021 to £807.2m ($929.4m). did.
Direct Line said its underwriting performance this year remains in line with its 2022 forecast, but its compound occupancy rate (percentage of revenue eaten up by losses and expenses) is now expected to be around 98% or slightly above. said there is. The company said this was primarily due to a gradual change in recognition of reserve releases in the previous year.
The company said in August that it continued to expect combined occupancy rates in the 96% to 98% range in 2022.
“Based on the current economic situation and the actions we have already taken and other actions that are underway, there is no change to our 2023 and medium-term target and dividend capacity outlook,” the company said.
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