Winslow’s Aviva statement as DLG delivers £395m increase in ongoing operating profit

Direct Line Group (DLG) managed to secure a £395m increase in ongoing operating profit in 2024 following a heavy loss the previous year.

Last year, DLG announced that it had recorded an operating loss from its ongoing operations of £189.9m in the 12 months to 31 December 2023.

In a trading update published today (4 March 2025), DLG said this had increased to a profit of £205m in 2024, while gross written premium (GWP) increased from £2.98bn to £3.73bn year-on-year.

The increase in GWP came because of 32% growth in motor and 11% in non-motor, above its 7% to 10% compound annual growth rate target.

The net insurance margin, meanwhile, increased 12.3 points from -8.7% to 3.6% year-on-year.

While profit before tax dropped £59m annually from £277m to £218m, DLG noted that 2023 included a gain of £444m from the sale of the brokered commercial business.

These results come after chief executive Adam Winslow, who joined DLG in March 2024, put in place a strategy to turnaround the insurer.

Among plans include removing at least £100m of costs by the end of 2025 on a run-rate annualised basis.

Speaking about the results, Winslow said: “Our 2024 financial results demonstrate the significant progress we have made, so far, in transforming the business.

“The turnround strategy, launched in July, has made a marked difference to the company’s performance and we have good momentum across all our business lines.

“We also delivered a £395m increase in ongoing operating profit and 12-point improvement in our net insurance margin compared to the prior year.

“Motor returned to profitability during 2024 and we made material progress on our cost agenda by actioning £50m of run rate cost savings, with the full benefit expected in 2025.

“For 2025, we remain focused on delivering the turnaround at pace, leveraging our strong market position and operational efficiencies, to become the customers’ insurer of choice.”

Aviva deal

These results come after DLG announced that it had agreed to be acquired by Aviva.

The transaction values each DLG share at 275 pence and values the entire diluted share capital of the group at approximately £3.7bn.

It is expected the deal will close around mid-2025.

Winslow said that “while we need to plan appropriately for this potential takeover, we need to make sure we don’t take our foot off the accelerator when it comes to delivering business change”.

“The potential acquisition by Aviva, which remains subject to shareholder and regulatory approval, reflects the attractiveness of the group and we believe indicates the significant strength of our brands and products, the trust of our customers, talent of our people and the scale of the future opportunity,” he said.

“In the meantime, we remain an independent business focused on transforming our organisation, so we are better equipped to serve our customers with exceptional products and services.”