Home Money Direct Line boss Adam Winslow bets on tech to repel predators

Direct Line boss Adam Winslow bets on tech to repel predators

by Elijah
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Moving forward: Adam Winslow was hired knowing he would need to overhaul the business, but now he has to cram a months-long review process into three weeks.

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The boss of insurer Direct Line plans to launch a new strategy this month after the company rejected a £3.1bn takeover offer from a Belgian rival, The Mail on Sunday has learned.

Adam Winslow is set to mount his defense of the company alongside the annual results on March 21.

Winslow has not had much time to prepare, having joined Direct Line just two days after the board rejected the “unattractive” offer from Belgian Ageas at the end of February.

He is keen to set out the reasons why Direct Line should remain an independent company listed on the London Stock Exchange.

The FTSE 250-listed company launched in 1985 as the UK’s first telephone insurer.

Moving forward: Adam Winslow was hired knowing he would need to overhaul the business, but now he has to cram a months-long review process into three weeks.

Moving forward: Adam Winslow was hired knowing he would need to overhaul the business, but now he 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 of directors rejected Ageas’ proposal, the predator could return with a higher offer. Rival bidders may also enter the fray.

Winslow’s plan is expected to outline ways Direct Line could become more tech-savvy, which could include setting up an app for the first time. He is also likely to propose cost cuts.

Winslow was hired knowing he would need to overhaul the business. But now he has to cram a months-long review process into three weeks.

The move on 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 bid from US suitor GXO.

Direct Line founder Sir Peter Wood told The Mail on Sunday last week that the company had been run “so abysmally” for years that it deserved to be taken over. The insurer has issued multiple profit warnings in recent years.

In January last year it canceled its dividend after admitting it had been blindsided by a rise in claims for burst pipes caused by freezing weather.

Within weeks he parted ways with CEO Penny James.

It was subsequently forced to refund around £30 million to customers who were overcharged to renew their home and car insurance policies.

Direct Line posted a £76m loss in September. It sold a commercial insurance unit for £520m in an effort to shore up its balance sheet.

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