Direct Line to axe 550 jobs amid tough motor market

(Sharecast News) - UK insurer Direct Line said it planned to axe 550 jobs as part of a turnaround plan as its motor insurance arm continue to struggle amid tough trading conditions.

The company on Monday reported a fall in third quarter gross written premium and associated fees to £836m compared with £1.28bn a year ago.

"In motor, trading conditions have been challenging although we continued to grow policy count on price comparison websites and have worked at pace on the launch of the Direct Line brand in this channel," the company said in a trading update.

"Our drive to create a leaner and more efficient operating model is advancing, with consultations currently taking place as part of a proposed reduction of around 550 roles."

Direct Line said it was targeting £50m gross costs savings in 2025.

Reporting by Frank Prenesti for Sharecast.com