Preliminary results to be announced 7 March, 2017

RNS Number : 2755X

Direct Line Insurance Group PLC

20 February 2017

 

Direct Line Insurance Group plc

Preliminary results to be announced 7 March, 2017

20 February 2017

The Lord Chancellor stated on 27 January 2017 that she would announce the result of her review of the discount rate for personal injury claims in February 2017. As previously announced, Direct Line Insurance Group plc (the "Group") was scheduled to publish its preliminary 2016 financial results on 28 February, 2017. As the Lord Chancellor's announcement could impact on the Group's results and could be made on any day up to and including that date, the Group has decided to defer its preliminary results announcement until 7 March 2017.

The Group has previously disclosed, including in its 2015 Annual Report, that its personal injury claims liabilities related to lump sum settlements have been calculated using a discount rate of 1.5%, given the potential for a reduction to the discount rate from the current applicable rate of 2.5%. The Group also stated in its 2015 Annual Report that its profit before tax sensitivity to a 100bps increase/decrease in the discount rate around the Group's assumed rate of 1.5% was £131.9m/£(190.0)m. These sensitivities have reduced over time as claims have been paid and reserves released, and as the Group's lower reinsurance retention has reduced its net exposure on new business. As at the end of 2016, the Group's sensitivity to a 100bps increase/decrease in discount rate is materially lower than indicated in the 2015 Annual Report.

Before making any adjustment for any new discount rate that the Lord Chancellor may determine as a result of her review, the Group continues to expect to achieve its previously announced target of a combined operating ratio ('COR') of towards the lower end of the 93%-95% range, adjusted for normal weather, for the year ended 31 December 2016.

-ENDS-

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