Direct Line issues profit warning as inflation drives up cost of claims

Insurer’s shares fall as higher used car prices, costlier parts and longer repair times weigh on business

Direct Line has issued a profit warning, saying that the soaring prices of used cars, parts and longer repair times have pushed up the cost of claims.

Shares in the insurer plunged 13% on Monday – making Direct Line the biggest faller on the FTSE 250 – to its lowest level since 2013 as the company said that overall claim costs are rising at about 10%.

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from The Guardian https://ift.tt/2sXrPG6

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