The company suffers a big hit to its share price after its decision, which it blamed on an almost doubling of expectations for weather-related claims.
Direct Line has seen its shares fall by a quarter after it scrapped its final dividend, blaming a flood of claims related to bad weather in the UK last month.
While motor insurers performed strongly during the COVID pandemic as few customers were driving, inflationary pressures and supply chain issues due to the pandemic and the war in Ukraine have pushed up the cost of repairs. "Things have gone from bad to worse," analysts at Jefferies said in a note, adding they expected the axed final dividend to"come as a major shock to the market".Shares fell by more than 25% in early deals.
Danmark Seneste Nyt, Danmark Overskrifter
Similar News:Du kan også læse nyheder, der ligner denne, som vi har indsamlet fra andre nyhedskilder.
Martin Compston addresses rumours that Line of Duty will returnMartin Compston has addressed rumours that Line of Duty is set to return.
Læs mere »
Meet the full line-up of Winter Love Island 2023 contestants so farSo far, the dating show has welcomed its first ever partially sighted contestant, as well as a TikTok famous farmer and Michelle Keegan's body double.
Læs mere »
DF Direct Weekly: is next-gen GPU pricing out of control?What's going on with next-gen GPU prices? Here's digitalfoundry's thoughts on where things are and where we're heading - along with the latest episode of DF Direct Weekly.
Læs mere »
Inside four-bed NI property on the market with direct beach accessThis beautiful four-bed detached home in Co Down that offers direct beach access is currently on the market
Læs mere »
Line of Duty star on being 'mistaken for terrorists' while filming in Belfast“It’s another world, but it’s people’s lives, and if it’s what you grew up with, it’s kind of normal isn’t it?”
Læs mere »
Prince Harry 'crosses Charles' red line' after astonishing TV attacks on CamillaPRINCE Harry has stunned telly viewers with astonishing attacks on his step-mother Camilla — calling her “the villain” who left “bodies in the street”. The Duke said that she was ruthless in her pu…
Læs mere »