Direct Line shares slipped slightly on Friday after the insurer admitted it had made an error calculating its solvency ratio for the year full year ended 2023.
However, the impact on shares was minimal as the group used the opportunity to provide some insight into capital generation in the most recent period – which was very good.
“Stepping down into the FTSE 250 and Direct Line has had to flag an error in its reported solvency figures for 2023,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“The reported 197% capital ratio has been revised down to 188%, but this is still well above the target range of 140-180%. Errors are never good, but this doesn’t change much and the short update has actually given Direct Line the chance to deliver some positive guidance ahead of half-year results, with capital generation looking positive over the half so far.”
Direct Line shares were down 2% at the time of writing.