Direct Line to post 53pc profit increase for 2017

Insurer Direct Line is forecasting its annual results will beat City expectations, after it recorded lower than expected weather claims in 2017, and profit lifted in its motor and commercial divisions. Direct Line said it expected to post pre-tax profit of £540m for the year, up 53pc from £353m in 2016. Its solvency ratio, which reflects income against debt obligations, was well above requirements at the end of the year, with a surplus of around £1.2bn.