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Insurer Direct Line reported a fall profit drive by lower premiums in its motor and home divisions.
For the 12 months ended 31 December, pre-tax profit fell 12.2% as gross written premiums decline 0.31% £3.2bn.
The company blamed the fall in premiums on lower average premiums in motor and home and lower partnership volumes, though this was almost fully offset by 'strong' growth in green flag and commercial direct own brands.
The company recommended a final dividend of 14.4 pence per share, up 2.9% on last year.
Looking ahead, the company said it continued to expect underlying claims inflation in motor to be between 3% and 5%.
'The group targets a combined operating ratio of 93% to 95% for 2020 and over the medium term, normalised for weather. By the end of 2021, the group aims to increase the annual proportionate contribution from current-year operating profit to more than half of the group's total operating profit,' Direct Line said.
'In addition, the group is targeting improved efficiency through self-service and digitalisation and a reduction in operating expenses1 by £50m between 2018 and 2021 and we aim to improve our operating expense ratio to 20% by 2023. We reiterate our ongoing target of achieving at least a 15% return on tangible equity per annum, it added.
At 8:29am: (LON:DLG) Direct Line Insurance Group PLC share price was +12.15p at 324.35p