Direct Line has achieved three consecutive quarters of positive profit since the second half of last year. Led by CEO Patricia Ayuela, the insurance company reported net profits of 10.1 million euros in March, a significant improvement from the losses of 5.3 million euros in the same period last year. This news saw the company’s shares rise by more than 2%, with a consolidated advance of 13% in the year.
Direct Line attributes its positive performance to improved margins resulting from better client selection and insurance rates, as well as effective claims management. Facing high costs due to inflation in the sector, the company had to let go of some policyholders and increase contributions. Despite this, Direct Line saw a 3.4% increase in income while reducing the number of policyholders by 4.5% to 3.3 million policies. Premiums issued reached 251.4 million euros, a 3% increase, with all business lines (Motor, Home, Health) showing positive contributions.
CEO Ayuela expressed optimism about the results, noting a progressive improvement in margins and profits that signal a positive change in the company’s cycle. The company’s combined ratio, a key indicator of profitability, fell by 9.5 points to 97.3%, below 100% which indicates profitability
