DLG to launch signature brand on price comparison websites

Direct Line Group (DLG) has said it will be launching its flagship brand on price comparison websites (PCWs) as part of its refreshed strategy.

Chief executive Adam Winslow, who took charge of the insurer in March 2024, said he had “rigorously reviewed” the business and listened to investors, customers and employees about what direction the firm should take.

As part of DLG’s new strategy, it will put its signature brand Direct Line on PCWs – a channel it said 90% of consumers shop – in a bid to grow its motor business.

DLG said the move had been underpinned by its refreshed leadership team, with the firm making several new appointments over the last few months.

And it said the decision “gives us confidence in our ambition to rejoin the front runners in UK motor insurance and drive sustained profitable growth”.

“Today, we have set out our strategy and clear targets designed to position DLG as the customers’ insurer of choice,” Winslow added.

“Since joining DLG just over four months ago, I have rigorously reviewed our business and listened carefully to investors, customers, and employees.

“This work has deepened my belief in our strong foundations and excellent potential.

“Putting our strongest brand, Direct Line, on price comparison websites, where 90% of consumers shop, means we will be shaking up the motor insurance market once again.”

Strategy

This comes after DLG revealed that it saw an operating loss from its ongoing operations of £189.5m in the 12 months to 31 December 2023.

When this result was announced in March 2024, the insurer said there was a “substantial” cost reduction opportunity through further improvements in digital capability, reduced technology costs and removing complexity across the group.

DLG said it was now “confident” in delivering at least £100m in gross run-rate cost savings by exit 2025 and narrowing the cost gap versus peers.

“Our current focus is on improving business consistency and performance to drive profit and growth,” DLG said.

“During this time, we will invest in high payback organic opportunities, for example the group’s cost saving programme, and plan to restart regular dividends. 

“The board will review the conditions it previously set to consider a restart of the regular dividend on an ongoing basis.

“The combination of a strong starting solvency position, our pace of expected capital generation and the dividend policy should result in a growing solvency ratio over time, which should support additional opportunities for returns to shareholders.”