Direct Line approaches Aviva government Winslow about CEO emptiness

Direct Line Group, the struggling motor insurer, has approached probably the most senior executives at rival Aviva to change into its new boss.

Sky News has learnt that the FTSE-250 group, whose manufacturers embody Churchill and Green Flag, has been holding talks with Adam Winslow about taking on as its CEO.

This weekend, insurance coverage business sources stated it was not but clear whether or not Mr Winslow would take the position.

It was additionally unclear whether or not different candidates remained in talks with Direct Line.

Direct Line has been looking for a brand new chief since January, when Penny James stepped down within the wake of a string of revenue warnings and a choice to axe its dividend.

The firm appointed Jon Greenwood, its chief business officer, as her interim successor.

Mr Winslow has been with Aviva for lower than three years, having joined as CEO of its worldwide operations in January 2021.

He was then appointed to steer its basic insurance coverage enterprise within the UK and Ireland 4 months later.

His profession has additionally included stints at AIG and Allianz, two large insurance coverage multinationals.

Mr Winslow now sits on the board of the Association of British Insurers, the principle business commerce affiliation.

The seek for Ms James’s successor started seven months in the past when she was successfully compelled out as Direct Line’s CEO amid rising shareholder unrest.

Danuta Gray, its chair, has been main the hunt for a everlasting alternative.

The UK basic insurance coverage market has been hit by inflationary pressures, though Direct Line has carried out poorly by comparability with lots of its rivals.

In May, the corporate warned once more that the price of repairing automobiles and of second-hand automobiles was prone to hit earnings this 12 months, with insurance coverage premiums failing to maintain tempo with these bills.

The following month, it was ordered by the Financial Conduct Authority to overview 5 years of insurance coverage claims after acknowledging that it had underpaid some policy-holders on written-off automobiles.

More broadly, the City regulator has been scrutinising insurance coverage business practices extra intently in current months amid considerations about firms’ therapy of consumers.

Direct Line’s shares have fallen by a couple of quarter over the past 12 months, and the corporate now has a market capitalisation of simply over £2bn.

It has been listed on the London Stock Exchange since 2012, when former proprietor Royal Bank of Scotland – now NatWest Group – was compelled to divest it beneath the phrases of its monetary disaster bailout package deal.

For a lot of the interval since then, it was run by Paul Geddes, a extremely regarded businessman who was not too long ago appointed chief government of the wealth administration group Evelyn.

Direct Line is scheduled to report its half-year outcomes on September 7.

On Saturday, Direct Line and Aviva each declined to remark.