Direct Line hires Aviva manager Adam Winslow as its new boss
Direct Line hires Aviva manager Adam Winslow as its new boss
- Winslow has headed Aviva’s UK & Ireland general insurance arm since May 2021
- He also held various positions at American insurance giant AIG for eight years
- Direct Line Group, which owns the Green Flag brand, fell to £39.5million last year
Troubled insurer Direct Line has named Adam Winslow as its next chief executive after one of the most difficult years in the company’s history.
Winslow has led Aviva’s UK & Ireland general insurance business since May 2021, having previously been responsible for the group’s international markets arm.
Previously, he spent eight years at American insurance giant AIG in various roles, including Head of Global Life Insurance.
New boss: Aviva has named Adam Winslow (pictured) as its next CEO
He is expected to join the company in the first quarter of next year, succeeding Jon Greenwood, who became acting chief executive in January following the retirement of Penny James.
Their departure comes two weeks after the Bromley-based company caused a stir among investors by issuing a profit warning and canceling the final dividend.
Two months later, Direct Line, which owns the Churchill and Green Flag brands, reported a £39.5million loss for the year, compared with a £343.7million profit the previous year.
Performance has been hampered by regulations introduced by the Financial Conduct Authority last year, which prevent insurers from ‘boosting prices’ and charging loyal customers higher premiums.
Meanwhile, the group’s automotive division suffered from the sharp rise in used car prices and the Ukraine war, which led to longer repair times and higher damage costs.
In addition, damage from severe weather events rose to £149m, more than double previously estimated, after particularly cold weather in Scotland and North West England in December.
The company warned that earnings would continue to be hurt by economic uncertainty and “higher-than-expected” claims inflation in the auto business.
Since then, Direct Line has admitted that some auto and van insurance customers underpaid for five years.
The FCA has ordered it to review losses on vehicles written off between September 2017 and mid-August 2022 to identify policyholders who received “unfair compensation” and compensate them.
Danuta Gray, Chair of Direct Line Group, said: “Adam has extensive expertise in the UK general insurance market and extensive managerial experience spanning two decades in the personal and commercial insurance sectors.”
“The Board conducted an extensive search and Adam Winslow distinguished himself for his strategic industry understanding, outstanding track record of leading high-performing businesses and focus on driving operational excellence to consistently meet client needs.”
Winslow is expected to be paid an annual salary of £820,000 and a pension supplement of 9 per cent, in line with company staff.
Russ Mold, investment director at AJ Bell, said the new boss “seems like a safe couple… and is very familiar with the challenges facing the UK general insurance market.”
Shares in Direct Line Group rose 1.65 per cent, or 1.6p, to 162.35p on Wednesday morning, despite the value having fallen about 48 per cent over the past two years.