Direct Line share price sinks as motor insurance claims climb
Direct Line shares tank
Direct Line shares taking a huge hit this session. Its shares near a decade-low on weak profit. Let's take a look at the numbers for you. The British motor insurer reported a 95% plunge in 2022 operating profit. Behind the weakness: inflation, which drove up repair costs.
Outlook
The company is also warning that this year, it might be impacted by higher than previously thought claims inflation. Now, Direct Line Insurance Group PLC shares, including some of the session moves, are down around 28% year-to-date. But at the moment, if I zoom in here for you, its shares are down around 4.7%, as you can see, this red candle. There is a clear downward momentum trend and we could continue lower. Where Direct Line goes from here will depend on what the company does about those inflation costs moving forward. If you think the company isn't able to get a grip, quickly, on those rising costs, than this might be one stock to short. If you think Direct Line can quickly turn things around, then perhaps this could be a recovery play. For more videos from us here at IGTV, join us on Twitter at IG com, Instagram, and subscribe to our YouTube channel.
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