Directorate Change

RNS Number : 0490O

Direct Line Insurance Group PLC

27 January 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

DIRECT LINE GROUP CHIEF EXECUTIVE TO STEP DOWN AND

APPOINTMENT OF ACTING CHIEF EXECUTIVE

27 January 2023

Direct Line Insurance Group plc ("the Group") announces that Penny James has agreed with the Board that she will step down as Chief Executive Officer and as a Director with immediate effect.

The Board is initiating a process to identify and appoint a successor CEO. Until that process is complete, Jon Greenwood, currently Chief Commercial Officer, has been appointed Acting Chief Executive Officer, and is to join the Board, subject to any additional regulatory approvals. Penny will assist with the process of transition to ensure a smooth handover of responsibilities.

Danuta Gray, Chair of Direct Line Group, said:

"On behalf of the Board, I would like to thank Penny James for her contribution, dedication and commitment to the company since joining to be CFO in late 2017 and subsequently as CEO from May 2019.

During her time as CEO, Penny has overseen significant strategic progress, transforming the technology and capability across the business, accelerating the digitalisation of customer journeys and helping to set the company up for the future.  She also deserves great credit for the way she led the business through the pandemic, in a very challenging market, ensuring that we continued to serve our customers.

The Board and I are grateful to Jon Greenwood for agreeing to serve as Acting Chief Executive Officer. Jon has a successful track record in leading our Commercial business and as Chief Commercial Officer has a deep understanding of the Group. The Board and I will work closely with Jon as he focuses on our priorities of driving our performance and restoring balance sheet resilience, following the significant headwinds the business faced in recent months.

Yesterday we announced new strategic reinsurance arrangements, which are expected to increase the Group's year-end 2022 solvency capital ratio by around 6 percentage points, and we will continue to focus on rebuilding our capital position."

Penny James, Chief Executive Officer of Direct Line Group, said:

"It has been a privilege to lead Direct Line Group for nearly four years and to work with such an amazing group of colleagues. While the business was impacted by significant headwinds at the end of 2022, the Group has continued to make strategic progress.  

I am proud of what the business has delivered for customers, where our technology transformation has seen improved digital capability in our core business areas, setting the Group up for the future. I wish Jon and the team every success and have no doubt they will build on the underlying strengths of the business."

For more information, please contact:

PAUL SMITH

Director of Business Performance,

Reporting and Investor Relations

Mobile: [phone]

 WILL SHERLOCK

Group Corporate Affairs and Sustainability Director

Mobile: [phone]

This announcement contains inside information.  The person responsible for arranging the release of this announcement on behalf of the Company is Humphrey Tomlinson, General Counsel.

Biography for Jon Greenwood, Acting CEO

Jon Greenwood  joined what is now Direct Line Group in 2000. He has over 30 years' experience of the insurance industry. As Chief Commercial Officer he has led on the Group's Product and Trading Strategy and is responsible for providing a strong commercial overview across all trading areas working closely with the leaders of the Motor, Household, Commercial and Rescue teams, identifying and responding to market trends and driving commercial opportunities. He was also responsible for the Group's Commercial brands, leading strategy, developing customer propositions, enhancing the brands and delivering efficiencies within the Commercial businesses.

Jon was previously Managing Director of the Group's household and life businesses. Before he joined the Group, Jon held roles at HBOS, MBNA and Pinnacle.

Remuneration arrangements for Penny James will be published on the Company's website.

Forward-looking statements disclaimer

Certain information contained in this document, including any information as to the Group's strategy, plans or future financial or operating performance, constitutes "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "aims", "ambition", "anticipates", "aspire", "believes", "continue", "could", "estimates", "expects", "guidance", "intends", "may", "mission", "outlook", "over the medium term", "plans", "predicts", "projects", "propositions", "seeks", "should", "strategy", "targets", "will" or "would" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They may appear in several places throughout this document and include statements regarding intentions, beliefs or current expectations, including of the Directors, concerning, among other things: the Group's results of operations, financial condition, prospects, growth, strategies, the industry in which the Group operates and the Group's approach to climate-related matters. Examples of forward-looking statements include financial targets which are contained in this document specifically with respect to return on tangible equity, solvency capital ratio, combined operating ratio, percentage targets for current-year contribution to operating profit, prior-year reserve releases, cost reductions, reduction in expense ratio, investment income yield, net realised and unrealised gains, capital expenditure, risk appetite range, balance sheet resilience and dividend capacity; and targets, goals and plans relating to climate and the Group's approach and strategy in connection with climate-related risks and opportunities. By their nature, all forward-looking statements involve risk and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and/or are beyond the Group's control and/or they rely on assumptions that may or may not transpire to be correct. Forward-looking statements are not guaranteeing future performance.

The Group's actual results of operations, financial condition and the development of the business sector in which the Group operates may differ materially from those suggested by or assumed in the forward-looking statements contained in this document, for example directly or indirectly as a result of, but not limited to:

- United Kingdom ("UK") domestic and global economic business conditions;

- the direct and indirect impacts and implications of the coronavirus Covid-19 pandemic on the economy, nationally and internationally, on the Group, its operations and prospects, and on the Group's customers and their behaviours and expectations;

- the Trade and Co-operation Agreement between the UK and the European Union ("EU") regarding the terms, following the end of the Brexit transition period, of the trading relationships between the UK and the EU and its implementation, and any subsequent trading and other relationship arrangements between the UK and the EU and their implementation;

- the terms of trading and other relationships between the UK and other countries following Brexit;

- the impact of the FCA pricing practices report and any rules and regulations arising as a result of that report and of responses by insurers, customers and other third parties and of interpretations of such rules by any relevant regulatory authority;

- market-related risks such as fluctuations in interest rates, exchange rates and credit spreads, including those created or exacerbated by the Russian invasion of Ukraine;

- the policies and actions and/or new principles, rules and/or regulations, of regulatory authorities and bodies, and of changes to, or changes to interpretations of principles, rules and/or regulations (including changes made directly or indirectly as a result of Brexit or related to capital and solvency requirements or related to the Ogden discount rates or made in response to the Covid-19 pandemic and its impact on the economy and customers) and of changes to law and/or understandings of law and/or legal interpretation following the decisions and judgements of courts;

- the impact of competition, currency changes, inflation and deflation;

- the timing, impact and other uncertainties of future acquisitions, disposals, partnership arrangements, joint ventures or combinations within relevant industries; and

- the impact of tax and other legislation and other regulation and of regulator expectations, interventions, enforcements, fines and requirements and of court, arbitration, regulatory or ombudsman decisions, judgements and awards (including in any of the foregoing in connection with the Covid-19 pandemic) in the jurisdictions in which the Group and its affiliates operate.

In addition, even if the Group's actual results of operations, financial condition and the development of the business sector in which the Group operates are consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods.

The forward-looking statements contained in this document reflect knowledge and information available as of the date of preparation of this document. The Group and the Directors expressly disclaim any obligations or undertaking to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, unless required to do so by applicable law or regulation. Nothing in this document constitutes or should be construed as a profit forecast.

Neither the content of Direct Line Group's website (or any part of it including any press release), nor the content of any other website accessible from hyperlinks on the Group's website, is incorporated into, or forms part of, this document.

LEI: 213800FF2R23ALJQOP04

 

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