Still sees 13% net insurance margin in 2026 (Il Sole 24 Ore Radiocor) - London, 10 Jul - The UK's Direct Line Insurance Group said that it revised its capital allocation framework and policy to pay around 60% of operating earnings as a regular dividend.

Ahead of its its Capital Markets Day, the company reiterated its target of at least 100 million pounds of gross run-rate cost savings by exit 2025 and its target of a 13% net insurance margin in 2026.

"We expect our solvency capital ratio to build over time to support additional shareholder returns," it added.

In the medium term, Direct Line is targeting a solvency ratio of around 180%. However, in the short-term, its expect to maintain a solvency ratio above this level. In 2023 the solvency ratio was 197%.

"Our current focus is on improving business consistency and performance to drive profit and growth. During this time, we will invest in high payback organic opportunities, for example the group's cost saving programme, and plan to restart regular dividends. The board will review the conditions it previously set to consider a restart of the regular dividend on an ongoing basis," it added.

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(RADIOCOR) 10-07-24 11:28:22 (0258) 5 NNNN