DLG reveals plans to axe around 550 jobs to cut costs

Direct Line Group (DLG) has revealed plans to axe hundreds of job roles as it looks to deliver £100m in gross cost savings by the end of 2025.

Chief executive Adam Winslow said his firm was in the early stages of a “significant turnaround” and that the business was projected to deliver £50m in savings next year.

As part of the cost saving process, the insurer is aiming to make its operating model more efficient.

And DLG revealed that it is looking at cutting around 550 roles to help achieve this.

The company said: “A series of initiatives aimed at simplifying the organisation is projected to deliver £50m gross costs savings in 2025, showing material progress towards our target of at least £100m gross cost savings by the end of 2025, on a run rate annualised basis.

“Our drive to create a leaner and more efficient operating model is advancing, with consultations currently taking place as part of a proposed reduction of around 550 roles.”

Trading update

The revelation came in a trading update today (11 November 2024), which showed that gross written premium (GWP) and associated fees from ongoing operations grew year-on-year.

The insurer secured £2.54bn in the nine months to September 2024, up 11.8% from £2.27bn during the same period last year.

This was supported by growth of 11.4% in motor, despite in-force policies in this area dropping 5.9% between June and September.

The insurer said: “In motor, trading conditions were competitive in Q3 and we remained disciplined in both pricing and risk selection.

“We experienced a higher level of large bodily injury claims in Q3, with experience in H1 and Q4 to date in line with expectations.”

Meanwhile, non-motor premium growth sat at 12.9% in the nine months to September 2024.

Home own brands delivered 21.6% growth in GWP year-on-year, while commercial direct and rescue premiums were up 11.8% and 0.7% respectively.

Appointments

The growth came following DLG making several leadership appointments this year.

For example, in May 2024, Hugh Hessing moved into the position of chief operating officer, while Craig Thornton became managing director for home and growth and Martin Milliner became managing director of claims.

And in October 2024, former Aviva c-suite Jane Poole was appointed as chief financial officer.

Winslow said: “I’m pleased with the strategic and operational progress we are making across the business.

“I’m delighted that Poole recently joined as CFO and is already focused on reviewing our financial strategies, policies and controls. In total, we have hired eight new executive leadership team members, six of whom have already started.

“This reinforced and refreshed team will help us unlock the potential of DLG and deliver the strategy we set out at the capital markets day in July.

“We believe the steps we are taking will position the company for enhanced profitability and growth as we build on our strong foundations to become the customers’ insurer of choice.”