Direct Line Group's profits rise as insurer keeps costs down

2nd Aug 2013 10:59

Insurance company Direct Line Group reported 96 per cent rise in pre-tax profit to 208.8m pounds in the first half as improved costs control offset lower investment returns.Gross written premium for ongoing operations was 4.0% lower, reflecting competitive market conditions in UK personal lines, partially offset by growth in the International division.Operating profit from ongoing operations came to £286.6m, up 27.8%, driven principally by lower claims from major weather events.Net asset value per share was 186.9p and tangible net asset value per share was 156.6p, compared to the prior year's 189.1p and 161p, respectively, due mainly to the payment of a 8.0p final dividend.The group recommended an interim dividend per share of 4.2p, up 5.0% from last year.Paul Geddes, Chief Executive of Officer of Direct Line Group, said: "These are a good set of results, even allowing for the benign weather in the period. Our transformation plan continues to deliver strong benefits to our Home and Motor businesses, and the total operating profit from our Commercial and International businesses doubled compared with the first half of 2012."Shares fell 3.90% to 320.50p at 11:28 on Friday. RD