By Joe Hoppe
Direct Line Insurance coverage Group PLC mentioned Tuesday that pretax revenue fell in 2021 due to restructuring and one-off prices, and it raised its last dividend and declared a share buyback.
The nonlife insurer made a pretax revenue of 446.0 million kilos ($584.4 million), down from GBP451.4 million a 12 months prior, whereas working revenue rose 11% to GBP581.8 million. The corporate attributed the pretax revenue slip to greater working revenue being offset by a GBP62.1 million enhance in restructuring and one-off prices.
Gross written premiums fell 0.3% to GBP3.17 billion. Direct Line’s mixed working ratio–the proportion of income eaten up by losses and expenses–came to 90.1%, in contrast with 91.0% within the earlier 12 months, the corporate mentioned. A ratio under 100% signifies worthwhile underwriting.
The insurer’s solvency capital ratio, an necessary measure of balance-sheet energy, stood at 176% after taking dividends and buybacks under consideration, slipping from 191% on the finish of 2020.
The board declared a last dividend of 15.1 pence, up from a last dividend of 14.7 pence for 2020.
The corporate mentioned it might purchase again as much as GBP100 million of shares over the brand new 12 months. It mentioned it might proceed to focus on a mixed working ratio of 93% to 95% in 2022 and within the medium time period.
Write to Joe Hoppe at joseph.hoppe@wsj.com