LONDON (Alliance News) - Direct Line Insurance Group PLC on Wednesday reported a 5% drop in first quarter gross premiums and said that it will record a GBP50 million claims charge for the so-called "Beast from the East" cold weather snap that hit the UK during the period.
The insurer added that the cold weather snap in February and March utilised the company's full annual weather budget.
For the three months to March-end, the company recorded total gross premium of GBP769.9 million, down from GBP810.3 million in the year ago period.
Motor premiums rose 2.9%, while home - own brands - premium grew 0.4% in the period. The Home - partnerships - division recorded a 52% drop in first quarter premiums to GBP47.3 million.
The company's commercial business and Green Flag rescue division recorded 8.6% and 9.6% growth in premiums, respectively.
In-force policies in the quarter fell 2.2% to 15,469 from 15,818 a year ago.
"We are pleased we were able to grow while maintaining our discipline on loss ratios and we reiterate our full year targets," said Chief Executive Paul Geddes.
Shares in Direct Line were trading 4.2% lower at 360.50 pence in early trade
Direct Line (DLG)