Direct Line Regulatory News (DLG)

DIRECT LINE INSURANCE GROUP PLC ("DLG")

TRANSACTIONS IN SHARES BY PERSONS DISCHARGING MANAGERIAL RESPONSIBILITY ("PDMRS")

28 AUGUST 2013

DLG announces the following changes to the interests of PDMRs in DLG's ordinary shares of 10 pence each ("Ordinary Shares").

Direct Line Insurance Group plc 2012 Long-Term Incentive Plan ("LTIP")

DLG was notified today of the grant of options to acquire Ordinary Shares under the LTIP to the following PDMRs in respect of the financial year ending 31 December 2013. In accordance with the LTIP rules, the awards were granted on 28 August 2013 as nil-cost options.

* Acting Human Resources Director.

DLG's policy is to make awards twice a year following the announcement of DLG's full and half-year results respectively. The awards will vest on 27 August 2016, subject to the achievement of performance conditions attached to the awards, and remain exercisable until 27 August 2023.

For further information on DLG's remuneration policy and implementation of the policy please see our 2012 Directors' remuneration report which is available at: ara2012.directlinegroup.com.

This announcement is made in accordance with the requirements of DTR 3.1.4 R.

For any enquiries relating to this announcement, please contact:

Ines WatsonSenior Assistant Company Secretary, GovernanceEmail: ines.watson@directlinegroup.co.uk

Telephone: 020 8313 5997