DIRECT Line Insurance Group unveiled plans on Monday (Nov 11) to cut 550 roles, or about 5 per cent of its global workforce, and reported a fall in gross premiums written in the third quarter, weighed down by its underperforming motor insurance business.
The British insurer has been struggling to reinvigorate its business under a turnaround strategy launched by CEO Adam Winslow after it fended off a £3.17 billion (S$5.49 billion) takeover attempt by Belgian rival Ageas in March.
“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,” Winslow said in a statement.
Direct Line had 10,131 employees globally, as of December-end, according to its annual report.
Aggressive price hikes have helped Direct Line mitigate the effect of rising cost of claims, but have also turned its customers away to cheaper rivals.
The company said its total gross written premium and associated fees reached £835.9 million in the three months ended Sep 30, compared with £1.28 billion a year earlier.
