{{short description|British insurance company}} {{Use dmy dates|date=October 2015}} {{Use British English|date=October 2015}} {{Infobox company | name = Direct Line Insurance Group Ltd. | logo = Direct Line Group logo.svg | type = Subsidiary | founded = {{start date and age|2012|2}}<ref>{{cite web |url=http://www.marketingmagazine.co.uk/news/1116541/RBS-Insurance-division-rebrand-Direct-Line-Group/ |title=RBS Insurance division to rebrand as Direct Line Group |author=Alex Brownsell |date=9 February 2012 |publisher=Marketing |access-date=3 September 2012}}</ref> | founders = {{Ubl | Peter Wood | Martin Long }} | location = Bromley, England, UK | area_served = United Kingdom | key_people = {{Ubl | Danuta Gray (Chair of the Board)<ref name="FT"/> | Owen Morris (Chief Executive Officer)<ref name="Treanor"/> }} | industry = Insurance | products = {{Ubl | General insurance | Finance }} | revenue = {{increase}} £4,567.0 million (2024)<ref name=results>{{cite web|url=https://www.directlinegroup.co.uk/content/dam/dlg/corporate/Documents/investor-pages/results-and-reports/2025/Direct-%20Line-Insurance-Group-plc-FY24-Preliminary-Results.pdf.downloadasset.pdf|title= Preliminary Results 2024|publisher=Direct Line Group|access-date=14 March 2025}}</ref> | operating_income = {{decrease}} £218.4 million (2024)<ref name=results/> | net_income = {{decrease}} £162.6 million (2024)<ref name=results/> | assets = | equity = | num_employees = 10,200 (2024)<ref>{{cite web |url=https://www.insurancebusinessmag.com/uk/companies/direct-line-group/29759/|title=Direct Line Group |publisher=Insurance Business Magazine|access-date=12 February 2024}}</ref> | owner = Aviva | subsidiaries = {{Ubl | UK Insurance Limited | UK Insurance Services Limited }} | brands = {{Hlist | Direct Line | Churchill | Privilege | Green flag | Direct Line Group Auto Services | By Miles | Darwin | Direct Line for Business | Churchill Business | Churchill Expert | CaHa! | Brolly (defunct) | Shotgun (defunct) }} | slogan = | website = {{URL|https://directlinegroup.co.uk}} | footnotes = | telephone = }}
'''Direct Line Insurance Group Ltd.''' is a British insurance company based in Bromley, England. It was formed in 2012 by the divestment of The Royal Bank of Scotland Group's (RBS) insurance division, through an initial public offering. The company owns a number of insurance subsidiaries, providing various insurance products, including Direct Line and Churchill Insurance, Darwin as well as the roadside assistance and vehicle recovery provider Green Flag.
The group was listed on the London Stock Exchange until it was acquired by Aviva in July 2025.
==History== The company was originally established in 1985 by Peter Wood and Martin Long, as the insurance division of The Royal Bank of Scotland Group (RBS).<ref name="halifax">{{cite news | title = Halifax opens fire in motor cover war | newspaper = The Daily Telegraph | date = 10 January 2001 | url = https://www.telegraph.co.uk/finance/personalfinance/4477597/Halifax-opens-fire-in-motor-cover-war.html | location=London}}</ref> It was the first telephone only insurance company in the United Kingdom.<ref name="halifax"/> In September 2012, the group's then chief executive, Paul Geddes, announced the business was "operating as a standalone insurance company", in advance of a future full divestment from the RBS Group.<ref>{{cite news |title=Direct Line nears RBS separation |url=https://www.bbc.co.uk/news/uk-scotland-scotland-business-19463398 |newspaper=BBC News |date=3 September 2012 |access-date=3 September 2012}}</ref>
The company was the subject of an initial public offering (IPO) in October 2012.<ref name="The Telegraph">{{cite news|url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/insurance/9600778/Direct-Line-IPO-priced-to-go-at-175p.html|title=Direct Line IPO 'priced to go' at 175p|date=11 October 2012|newspaper=The Telegraph|access-date=20 December 2012}}</ref> RBS sold a 30% share of the business in the IPO, and sold a further 17% in March 2013, reducing its holding in the business to 48.5%.<ref>{{cite news |title=RBS races ahead with Direct Line sell-off |url=http://uk.reuters.com/article/uk-rbs-directline-sale-idUKBRE92C0DD20130313 |archive-url=https://web.archive.org/web/20160306025430/http://uk.reuters.com/article/uk-rbs-directline-sale-idUKBRE92C0DD20130313 |url-status=dead |archive-date=6 March 2016 |author=Steve Slater |newspaper=Reuters |date=13 March 2013 |access-date=24 June 2013}}</ref> RBS sold a further 20% in September 2013,<ref>{{cite news |title=RBS makes £630m from sale of 20% of Direct Line |url=https://www.bbc.co.uk/news/business-24171522 |newspaper=BBC News |date=20 September 2013 |access-date=20 September 2013}}</ref> and sold the remainder of its holding in February 2014.<ref>{{cite news |title=RBS set to make £1bn from remaining Direct Line stake |url=https://www.bbc.co.uk/news/business-26361479 |newspaper=BBC News |date=26 February 2014 |access-date=26 February 2014}}</ref>
Direct Line sold its TRACKER Network UK telematics business to the private equity firm Lysanda in February 2014.<ref>{{cite news|title=BRIEF-Direct Line completes sale of UK tracker network|url=http://uk.reuters.com/article/directlineinsurance-brief-idUKWLB0071820140205|archive-url=https://web.archive.org/web/20160306212643/http://uk.reuters.com/article/directlineinsurance-brief-idUKWLB0071820140205|url-status=dead|archive-date=6 March 2016|access-date=23 February 2015|work=Reuters|date=5 February 2014}}</ref> In September 2014, it was announced that Mapfre would acquire the Italian and German businesses of Direct Line, for a sum of €550 million.<ref>[https://www.reuters.com/article/us-direct-line-ins-m-a-mapfre-idUSKCN0HK0LE20140925 Spain's Mapfre to buy Direct Line's German, Italian units for $700 million]. Reuters, 25 September 2014</ref> The company also made a number of tough financial decisions in 2014, including abandoning some lines of business, making redundancies, and closing 14 of their 27 offices in the United Kingdom.<ref>{{cite news|last=Scott|first=Matt|date=14 March 2017|url=http://www.managers.org.uk/insights/news/2017/march/inside-a-turnaround-the-direct-line-story |title=Inside a Turnaround: The Direct Line story|newspaper=Managers.co.uk|access-date=1 March 2024}}</ref>
In February 2019, Direct Line announced it would be appointing chief financial officer Penny James as the CEO.<ref>{{Cite news|url=https://uk.reuters.com/article/uk-direct-line-ins-ceo-idUKKCN1QF1LI|archive-url=https://web.archive.org/web/20190227013304/https://uk.reuters.com/article/uk-direct-line-ins-ceo-idUKKCN1QF1LI|url-status=dead|archive-date=27 February 2019|title=Insurer Direct Line names Penny James CEO|date=2019-02-26|work=Reuters|access-date=2019-07-01|language=en}}</ref> In January 2023, Jonathan Greenwood become acting chief executive after James agreed with the board to step down after two successive profit warnings and a dividend cancellation.<ref name="FT">{{Cite web|first1=Oliver|last1=Ralph|first2=Ian|last2=Smith|location=London|url=https://www.ft.com/content/96c89852-b70b-400b-adad-ab2616dcd142|title=Direct Line chief executive steps down after profit warnings|date=27 January 2023|website=Financial Times|archive-url=https://archive.today/20230127084443/https://www.ft.com/content/96c89852-b70b-400b-adad-ab2616dcd142|archive-date=27 January 2023|url-status=live|url-access=subscription|access-date=28 January 2023}}</ref>
In November 2023, Direct Line Insurance Group announced that they set to cut about 550 jobs as part of a turnaround plan aimed at saving £50 million ($64 million) in 2025. The reductions would eliminate about 6% of its roughly 9,000 employees.<ref>{{Cite web|url=https://www.bloomberg.com/news/articles/2024-11-11/uk-motor-insurer-direct-line-to-cut-550-jobs-in-turnaround-bid?srnd=homepage-uk&embedded-checkout=true|title=UK Motor Insurer Direct Line to Cut 550 Jobs in Turnaround Bid|work=Bloomberg|access-date=2024-11-11|language=en}}</ref>
Adam Winslow took over as CEO in the first quarter of 2024.<ref name="Winslow">{{Cite web|first=Jill|last=Treanor|date=21 January 2024|title=Direct Line's new boss is insurance 'royalty' — but can he turn the firm around?|website=The Times|url=https://www.thetimes.com/business-money/markets/article/insurance-royalty-adam-winslow-will-feel-the-chill-at-direct-line-bp387xprt|access-date=30 March 2025|archive-url=https://web.archive.org/web/20250330092755/https://www.thetimes.com/business-money/markets/article/insurance-royalty-adam-winslow-will-feel-the-chill-at-direct-line-bp387xprt|archive-date=30 March 2025|url-access=subscription|url-status=live}}</ref> In February 2024 it was reported that the Belgian insurer, Ageas, was considering a bid of around €3.1bn for the company.<ref>{{cite news|url=https://www.postonline.co.uk/personal/7955181/why-ageas-buying-direct-line-makes-sense-now|title=Why Ageas buying Direct Line makes sense now|date=29 February 2024|newspaper=Insurance Post|access-date=1 March 2024}}</ref> In March 2024, Ageas announced no offer would be made.<ref>{{Cite web |title=Ageas SA/NV announces no offer will be made for Direct Line Insurance Group plc {{!}} Ageas |url=https://www.ageas.com/newsroom/ageas-sanv-announces-no-offer-will-be-made-direct-line-insurance-group-plc |access-date=2024-11-11 |website=www.ageas.com}}</ref>
Shares of Direct Line Insurance surged by over 36% in early trading on 28 November 2024 after the company rejected a £3.28 billion ($4.16 billion) takeover offer from rival Aviva, stating the offer "substantially undervalued" the company. Despite the surge, Direct Line's stock remained below the proposed offer price of 250 pence per share. Analysts from Jefferies suggested that a higher bid could be possible if Direct Line’s board engages with Aviva.<ref>{{cite news|title=UK's Direct Line surges after rejecting Aviva's $4.16 bln takeover offer |date=28 November 2024 |url=https://www.reuters.com/markets/deals/uks-direct-line-surges-after-rejecting-avivas-416-bln-takeover-proposal-2024-11-28/ |access-date=28 November 2024}}</ref>
On 23 December 2024, Aviva reached an agreement to buy the company at a price which valued it at £3.70 billion.<ref>{{Cite news |last=Almeida |first=Lauren |date=23 December 2024 |title=Aviva to buy Direct Line for £3.7 billion |url=https://www.thetimes.com/business-money/companies/article/aviva-to-buy-direct-line-for-37-billion-6nqqjwlpk |work=The Times}}</ref><ref>{{Cite web|url=https://www.itij.com/latest/news/aviva-completes-direct-line-group-purchase|title=Aviva completes Direct Line Group purchase|work=International Travel & Health Insurance Journal |access-date=2024-12-29|language=en}}</ref> The transaction needed shareholder consent and approval from the Competition and Markets Authority.<ref>{{cite news|url=https://www.theguardian.com/business/2024/dec/23/aviva-to-buy-direct-line-deal-jobs-staff-insurance-takeover|title=Aviva to buy Direct Line in £3.7bn deal, putting 2,300 jobs at risk|newspaper=The Guardian|date=23 December 2024|access-date=29 December 2024}}</ref> The Competition and Markets Authority and the Court approved the scheme on 1 July 2025, allowing the deal to complete.<ref>{{cite news|url=https://www.insurancetimes.co.uk/news/cma-approves-avivas-takeover-of-dlg-as-court-sanctions-scheme/1455674.article|title=CMA approves Aviva's takeover of DLG as court sanctions scheme|date=1 July 2025|newspaper=Insurance Times|access-date=1 July 2025}}</ref> On 1 July 2025, Aviva completed the acquisition of Direct Line.<ref>{{cite news|url= https://www.aviva.com/newsroom/news-releases/2025/07/aviva-completes-acquisition-of-direct-line/|title= Aviva completes acquisition of Direct Line|date=2 July 2025|newspaper=Aviva|access-date=2 July 2025}}</ref><ref>{{Cite web |title=London Stock Exchange {{!}} London Stock Exchange |url=https://www.londonstockexchange.com/news-article/DLG/aviva-completes-acquisition-of-direct-line/about:blank |access-date=2025-07-03 |website=www.londonstockexchange.com |language=en}}</ref> Following the acquisition, Owen Morris was appointed CEO, replacing Winslow, on 2 July 2025.<ref name=Treanor>{{cite news|url=https://www.insurancebusinessmag.com/uk/news/breaking-news/aviva-confirms-new-leadership-team-after-direct-line-merger-541168.aspx|title=Aviva confirms new leadership team after Direct Line merger |date=2 July 2025|newspaper=Insurance Business|access-date=2 July 2025}}</ref>
Direct Line Group was fined £10.6m by the Prudential Regulation Authority in March 2026 for miscalculating its solvency ratios in 2023 and 2024.<ref>{{cite news|url=https://www.insurancetimes.co.uk/news/aviva-issues-statement-after-dlg-slapped-with-106m-fine/1457986.article|title=Aviva issues statement after DLG slapped with £10.6m fine|date=12 March 2026|newspaper=Insurance Times|access-date=14 March 2026}}</ref>
==Operations== The group owns a number of general insurance brands operating within the United Kingdom, including Direct Line, Direct Line for Business, Churchill Insurance, Privilege, Darwin and Green Flag. Direct Line is a company that specialises in selling insurance and other financial services, sold directly to consumers by telephone and the internet.<ref name="halifax2">{{cite news|url=https://www.telegraph.co.uk/finance/personalfinance/4477597/Halifax-opens-fire-in-motor-cover-war.html|title=Halifax opens fire in motor cover war|date=10 January 2001|newspaper=The Daily Telegraph|location=London}}</ref>
==Subsidiaries== ===Darwin=== Darwin was founded in 2019 and led by Sumit Bahukhandi. The company only sells through price comparison websites, initially Moneysupermarket, and is built in the Amazon Web Services cloud. It uses a different pricing model to other companies in the group, and acts as a test bed for new ideas.<ref>Croucher, Martin (5 March 2019). [https://www.postonline.co.uk/personal/4058121/direct-line-to-target-price-comparison-sites-with-darwin-launch Direct Line to target price comparison sites with Darwin launch]. The Insurance Post.</ref><ref>Flinders, Karl (19 September 2019). [https://www.computerweekly.com/news/252470866/Direct-Line-built-an-insurtech-it-can-tweak-a-thousand-times-a-day Direct Line built an insurtech it can tweak a thousand times a day]. ComputerWeekly.com</ref><ref>Flinders, Karl (07 October, 2019). [https://www.computerweekly.com/news/252471899/Public-cloud-computing-is-early-on-its-journey-to-core-of-the-bank Public cloud computing is early on its journey to core of the bank - Darwin in the cloud]. ComputerWeekly.com</ref>
===Direct Line for Business=== thumb|Direct Line Building, Leeds Direct Line for Business was founded in Leeds in September 2007, and as of December 2020 has 811,000 customers.<ref>[https://www.nimblefins.co.uk/business-insurance/small-business-insurance-uk/direct-line-for-business-review#about Direct Line Group Company Overview]. NimbleFins</ref> Since 2010, the company has been led by Jasvinder Gakhal, who has been the director since 2014.<ref>(27 July 2017). [https://www.standard.co.uk/business/secrets-of-my-success-jazz-gakhal-head-of-direct-line-for-business-a3597601.html Secrets of my success: Jazz Gakhal, head of Direct Line for Business]. The Evening Standard.</ref><ref>Jackson, Suzy (27 Sept, 2017). [http://www.bqlive.co.uk/national/2017/09/27/news/meet-the-md-jasvinder-gakhal-direct-line-for-business-27870/ Meet the MD: Jasvinder Gokhal, Direct Line for Business]. BQ Live.</ref> The company appointed Claire Sadler as marketing director in October 2017.<ref>Taruc, Paolo (30 Oct, 2017). [https://www.insurancebusinessmag.com/uk/news/breaking-news/direct-line-for-business-appoints-new-marketing-director-83246.aspx Direct Line for Business appoints new marketing director]. Insurance Business magazine.</ref>
Direct Line for Business used PricewaterhouseCoopers to improve their product,<ref>[https://www.pwc.co.uk/industries/financial-services/fs-case-study-customer-experience.html Case study: micro SME insurance market]. PWC.co.uk</ref> and in July 2018, the firm launched a new advertising campaign, with Saatchi and Saatchi London.<ref>[http://saatchi.co.uk/en-gb/work/direct-line-keep-up-with-your-world/ Direct Line 'Keeping up with your world'] Saatchi - Work.</ref>
In the summer of 2019, Direct Line for Business announced that it was cosponsoring the creation of click and mortar pop up shops at ten locations across the United Kingdom, with cosponsors Amazon, Square, and the small business support network Enterprise Nation. The shops offer twenty small online brands the chance to sell their products, meet customers and experience selling on the High Street for the first time.<ref>Powney, Mark (13 August 2019). [https://businessnewswales.com/amazon-cardiff-experiment-facilitates-online-shop-high-street-experience/ Amazon Cardiff Experiment Facilitates Online Shop High Street Experience]. Business News Wales.</ref><ref>Hawthorne, Joe (9 August 2019). [https://www.edinburghnews.scotsman.com/business/amazon-behind-new-pop-up-shop-opening-in-edinburgh-s-waverley-mall-1-4980866 Amazon behind new pop-up shop opening in Edinburgh's Waverley Mall]. Edinburgh Evening News.</ref><ref>Keyes, Daniel (4 June 2019). [https://www.businessinsider.com/amazon-launches-clicks-and-mortar-pop-up-initiative-2019-6?r=US&IR=T Amazon is launching a yearlong “Clicks and Mortar” pop-up initiative in the UK]. Business Insider.</ref>
=== Direct Line Motability === Direct Line Motability (DLM) was founded in 2023 after Direct Line took over as the insurer for Motability Operations from RSA Insurance Group. As part of the move, Direct Line acquired a 17,000 sq ft office at 1 St Paul's Square, Liverpool with all RSA Motability staff based at the nearby capital building being transferred to DLM.<ref>{{Cite web |last=moprod1 |date=2023-10-03 |title=Insurance on the Motability Scheme: your questions answered |url=https://news.motability.co.uk/scheme-news/insurance-on-the-motability-scheme-your-questions-answered/ |access-date=2025-11-11 |website=Motability Scheme |language=en-GB}}</ref><ref>{{Cite web |last=Whelan |first=Dan |date=2023-01-05 |title=Direct Line takes 17,000 sq ft in Liverpool |url=https://www.placenorthwest.co.uk/direct-line-takes-17000-sq-ft-in-liverpool/ |access-date=2025-11-11 |website=Place North West |language=en-GB}}</ref><ref>{{Cite web |last=Coverager |date=2021-07-26 |title=Direct Line Group partners with Motability Operations |url=https://coverager.com/direct-line-group-partners-with-motability-operations/ |access-date=2025-11-11 |website=Coverager - Insurance news and insights |language=en}}</ref>
==References== {{reflist|2}}
==External links== *{{official website|}}
{{Royal Bank of Scotland Group}}
{{Authority control}}
Category:2012 initial public offerings Category:British companies established in 2012 Category:Companies based in the London Borough of Bromley Category:Companies formerly listed on the London Stock Exchange Category:Corporate spin-offs Category:Direct Line Group Category:Financial services companies established in 2012 Category:Insurance companies of the United Kingdom Category:NatWest Group Category:2025 mergers and acquisitions Category:Holding companies established in 2012