After a torrid year for Direct Line, investors had been hoping that Thursday’s interim results from the motor insurer behind the Churchill brand would show signs that its performance is starting to improve. However, on Friday the FTSE 250 company said it would pay out about £30 million in compensation for overcharging customers after admitting an “error” in implementing new rules.
Only half of the sum was provided for within the company’s full-year outlook, according to RBC Europe, which is forecasting annual pre-tax profit of £242 million, and investors will be keen to find out what the impact of the payout may be.
The latest mishap comes after a string of profit warnings over the past year after the business was caught out by a
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