DIRECT LINE INSURANCE GROUP PLC
Direct Line Group to partner with Motability Operations Ltd
Direct Line Insurance Group plc ('Direct Line Group') announces that it is to enter into a new partnership with Motability Operations Ltd ('Motability Operations') to provide insurance to the Motability Scheme, supporting its more than 600,000 customers.
This partnership is expected to grow Direct Line Group's Motor customer base by approximately 15% to over 4.5 million, adding further scale to Direct Line Group's leading claims management service. This allows Motability Operations' customers to benefit from the investments Direct Line Group has made in vehicle repair and customer service, including its strong digital capabilities. Together with top quartile indemnity control, Direct Line Group will support Motability Operations' objective to provide market leading customer experience and value.
The new arrangements are expected to take effect in approximately 18 months and be for 10 years. The Scheme's Gross Written Premium is approximately £500m per annum and, similar to Motability Operations' current structure, Direct Line Group will reinsure 80% of the risk back to Motability Operations via Motability Operations' reinsurance captive.
Penny James, Chief Executive Officer at Direct Line Group, said:
'I am delighted that we are partnering with Motability Operations whose work so aligns with our purpose of helping people carry on with their lives, giving them peace of mind now and in the future. Our digital capabilities and strength in vehicle repair, combined with Motability Operations' fleet of modern vehicles, means together we are ideally placed to deliver a first-class service at a time of rapidly changing motor technology. We look forward to welcoming the colleagues from Liverpool who will be joining us to deliver that exemplary customer experience.'
Andrew Miller, Chief Executive Officer at Motability Operations, said:
"As well as future-proofing our service, the new insurance proposition will offer the potential to grow the Scheme and provide increased flexibility to customers. We are confident these arrangements with DLG position us well to support the continued delivery of worry-free motoring and value for money to our customers."
This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. The person responsible for arranging the release of this announcement on behalf of Direct Line Insurance Group plc is Neil Manser, Chief Financial Officer.
For further information, please contact:
Director of Investor Relations
Tel: +44 (0)7795 811 263
Group Corporate Affairs and Sustainability Director
Tel: +44 (0)7786 836 562