Direct Line Earnings: Higher Prices and Lower Policy Sales; Shares Undervalued

Direct Line has reported gross written premiums of GBP 2.7 billion for the first nine months, a more than 20% rise on the same period in 2022 as the business incorporates 725,000 customers from mobility. This places the business ahead of the GBP 2.9 billion in gross premiums written that we forecast for the full year. Without the mobility partnership, Direct Line's motor insurance policies declined by 8.5% year to date. That is versus the 10.1% decline that we have forecast for the full year. Active home insurance policies have declined by 2.7% year to date versus the 6.5% decline we have penciled in.