Direct Line boss Adam Winslow is betting on technology to ward off predators
The boss of insurer Direct Line plans to launch a new strategy this month after the company rejected a £3.1 billion takeover bid from a Belgian rival, The Mail on Sunday understands.
Adam Winslow will defend the company alongside the annual results on March 21.
Winslow did not have long to prepare, as he joined Direct Line just two days after the board of directors rejected the ‘unattractive’ offer from the Belgian Ageas at the end of February.
He is keen to explain why Direct Line should remain an independent company, listed on the London Stock Exchange.
The FTSE 250-listed company was launched in 1985 as Britain’s first telephone insurer.
Racing Ahead: Adam Winslow was hired knowing he would have to overhaul the company, but now has to cram a months-long review process into three weeks
It has around 10 million customers and its brands include Churchill and Green Flag.
Although Direct Line’s board has rejected Ageas’ approach, the predator may come back with a higher offer. Rival bidders may also join the fray.
Winslow’s plan is expected to outline ways in which Direct Line could become more tech-savvy, including setting up an app for the first time. He will also likely propose cuts.
Winslow was hired with the knowledge he would need to overhaul the company. But now he has to cram a months-long assessment process into three weeks.
The move to Direct Line came shortly after two other bids for London-listed companies.
Currys rejected a bid from US investment group Elliott Advisors, while logistics group Wincanton accepted a £762m offer from US suitor GXO.
Direct Line founder Sir Peter Wood told The Mail last Sunday that the company had been “so hopelessly” run for years that it deserved to be taken over. The insurer has issued several profit warnings in recent years.
In January last year it canceled its dividend after admitting it had been hit by a surge in claims for burst pipes caused by freezing weather.
Within weeks it parted ways with CEO Penny James.
The company was later forced to refund around £30 million to customers who were charged more than necessary to renew their home and car insurance policies.
Direct Line posted a loss of £76 million in September. It sold a commercial insurance unit for £520 million in a bid to strengthen its balance sheet.