Trading Update for the first nine months of 2017
Highlights and outlook
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Own brands in-force policies grew across Motor, Home, Direct Line for Business and Green Flag year on year and quarter on quarter, particularly in the Direct Line brand.
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Strong momentum in Motor, with own brands policies up 5.5% compared to 30 September 2016.
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The actions taken on Home across claims and underwriting to mitigate the high escape of water claims inflation have resulted in encouraging improvements in claims experience.
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Annualised investment income yield of 2.6% is ahead of 2017 expectations due to portfolio positioning and some one-off benefits. Realised and unrealised gains net of hedging costs in the quarter were £3.4m.
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The Group is on track to achieve a combined operating ratio around the middle of the range of 93% to 95%, assuming a normal level of claims from major weather events.
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