Direct Line Group has revealed plans to axe around 550 jobs in the hopes of saving £50million next year.
The insurance group stressed some of the role reductions will include vacancies no longer being filled. Direct Line Group, which includes brands such as Direct Line, Churchill and Green Flag, has more than 10,000 employees globally. The job cuts, which represent around 5% of its workforce, were announced in a trading update today.
Direct Line Group said: “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. 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.”
In its trading update today, it was revealed the number of policyholders signed up to its own-brand cover were down 11% - falling from 3.37million to 3.12million over the half-year. Its total gross written premium and associated fees reached £835.9million over the three months to the end of September. This is compared with £1.28billion a year earlier.
The insurance firm has been struggling against higher claims costs, which it has partially fought back against by increasing its premiums. But this has meant more of its customers have switched and found cheaper prices elsewhere.
Adam Winslow, chief executive of Direct Line Group, said: "We delivered double-digit premium growth year on year in motor, home and commercial direct. However, we are in the early stages of a significant turnaround and our Q3 trading is not yet fully reflective of the actions we have taken."
But he added: "We are making good progress against our gross cost savings target, with around £50m expected to be delivered in 2025 from improvements in procurement, technology rationalisation and simplifying our operating model. I'm pleased with the strategic and operational progress we are making across the business."