Direct Line Insurance Group PLC Preliminary results to be announced 7 March, 2017 (2755X)
February 20 2017 - 1:15AM
UK Regulatory
TIDMDLG
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 GBP131.9m/GBP(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-
For investor and media enquiries please contact:
Andy Broadfield Jennifer Thomas
Director of Investor Head of Financial Communications
Relations
Tel: +44 (0)1651 831022 Tel: +44 (0)1651 831686
This information is provided by RNS
The company news service from the London Stock Exchange
END
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