Direct Line hires Aviva exec Adam Winslow as its incoming boss
- Winslow has been running Aviva’s UK & Ireland P&C business since May 2021.
- He also spent eight years in various positions with the US insurance giant AIG.
- Direct Line Group, owner of the Green Flag brand, fell to £39.5m last year
The embattled insurer Direct Line has appointed Adam Winslow as its next CEO after one of the most challenging years in the company’s history.
Winslow has been running Aviva’s UK & Ireland P&C business since May 2021, having previously headed the group’s international markets division.
Prior to that, he spent eight years in various roles at US insurance giant AIG, including head of its global life insurance businesses.
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, replacing Jon Greenwood, who became interim chief executive in January after Penny James stepped down.
His departure came a fortnight after the Bromley-based company caused alarm among investors by issuing a profit warning and scrapping its final dividend.
Two months later, Direct Line, which owns the Churchill and Green Flag brands, reported an annual loss of £39.5m from a profit of £343.7m the previous year.
Its performance was hit by Financial Conduct Authority rules introduced last year that prevent insurance companies from “changing prices”, imposing higher premiums on loyal customers.
Meanwhile, the group’s engine division was hit by skyrocketing used car prices, as well as the war in Ukraine, which led to longer repair times and higher loss costs.
In addition, severe weather claims have shot up to £149 million, more than double previous assumptions, following particularly cold weather in Scotland and north-west England in December.
The company warned that earnings would continue to be hit by economic uncertainty and “higher than assumed” claims inflation in its auto business.
Since then, Direct Line has acknowledged underpaying some auto and truck insurance customers over a five-year period.
The FCA ordered it to review losses on vehicles written off between September 2017 and mid-August 2022 to identify policyholders who collected ‘unfair settlements’ and compensate them.
Danuta Gray, Chairman of Direct Line Group, said: ‘Adam has in-depth experience of the UK P&C market and significant leadership experience, spanning two decades in personal and commercial lines insurance.
“The board conducted an exhaustive search, and Adam Winslow stood out for his strategic understanding of the industry, his excellent track record of leading high-performing businesses, and his focus on driving operational excellence to consistently meet customer needs.”
Winslow is expected to receive an annual salary of £820,000 and a 9 per cent pension, in line with company staff.
Russ Mould, AJ Bell’s chief investment officer, said the incoming boss “seems like a safe pair of hands… and is well-versed in the challenges facing the UK P&C market.”
Shares of the Línea Directa Group they were up 1.65 percent, or 1.6 pence, to 162.35 pence on Wednesday morning, though the value has fallen about 48 percent in the past two years.
