Protecting Our Customers

Group at a glance

Protecting our customers

We have multiple brands, products and distribution channels. Each enables our customers to choose the right cover to protect their cars, homes, holidays, businesses and pets.

Our brands

Direct Line has maintained the heritage of its brand in the UK Green Flag is our roadside rescue and recovery product, by selling products direct to customers by phone and internet which is sold both as a standalone service and an additional only. We target customers with a high brand affinity, focusing optional product alongside motor insurance. on a quick and straightforward customer experience. www.greenflag.com www.directline.com

Direct Line for Business is an extension of the Direct Line NIG is our specialist commercial insurance brand, brand. It is our direct commercial insurance brand for small focused on small and medium-sized enterprises (“SMEs”) businesses in the UK that have straightforward commercial in the UK. We sell our products through brokers, including insurance requirements. an in-house intermediary that arranges RBS and NatWest 1 www.directlineforbusiness.co.uk commercial insurance . www.nig.com

Churchill is a household name with products marketed in the Brand Partners is the business-to-business arm of the Group. UK by phone and internet, including by price comparison We specialise in providing personal lines insurance, and websites (“PCWs”). We target customers with a high brand roadside rescue and recovery products to some of the UK’s affinity and that value the need for support. well-known brands. www.churchill.com www.brand-partners.co.uk

Privilege targets customers who mainly buy through PCWs. We focus on providing a quick customer experience at the best price. www.privilege.com

Note: 1. The Royal Bank of Scotland Group plc, including National Westminster Bank plc.

6 Direct Line Group Annual Report & Accounts 2014 Strategic report Our divisions

Personal Motor Home We are Britain’s leading personal motor insurer, with We are one of Britain’s leading home insurers, with a a 13.1% share of in-force policies1, mainly represented 16.7% share of in-force policies1. We reach our customers through our highly recognised brands, Direct Line, Churchill by selling home insurance products through our brands Direct and Privilege, and through partners. We insure around Line, Churchill and Privilege as well as through our partners one in seven cars on the road, representing 3.7 million Sainsbury’s Bank, RBS, NatWest, Nationwide Building in-force policies. Society and Prudential.

£1, 3 4 2 . 0 m 3,672 £898.6m 3,526 Gross written premium In-force policies (thousands) Gross written premium In-force policies (thousands)

96.2 % £ 2 9 7.1 m 92.7% £113 .9 m Combined operating ratio Operating profit Combined operating ratio Operating profit

For more information, see page 36 For more information, see page 37

Rescue and other personal lines Commercial We are one of the leading providers of rescue and We protect small and medium-sized enterprises through other personal lines insurance in the UK2,3 with 8,592 thousand our own brands, NIG, Direct Line for Business and Churchill, in-force policies. This includes providing roadside assistance and plus RBS and NatWest. NIG sells its products exclusively through recovery for customers through Green Flag, the UK’s third-largest independent brokers operating across the UK. Direct Line for roadside recovery provider2. We also offer customers protection Business provides business, van and landlord insurance products. for their pets and holidays and we are the third largest insurer in Churchill sells van insurance direct and via PCWs. the UK for these insurance products3.

£ 3 7 1.8 m 8,592 £ 4 8 7. 0 m 611 Gross written premium In-force policies (thousands) Gross written premium In-force policies (thousands)

92.0% £48.0m 98.8% £ 4 7. 0 m Combined operating ratio Operating profit Combined operating ratio Operating profit

For more information, see page 38 For more information, see page 39

Our performance – ongoing operations4

Gross written premium4 Contribution to operating proﬁt4 (%) (%)

Motor 43.3 Motor 58.7 Home 29.0 Home 22.5 Rescue and other Rescue and other personal lines 12.0 personal lines 9.5 Commercial 15.7 Commercial 9.3

Notes: 1. Ranked by total in-force policies in the motor and home markets, including partner brands: RBS, NatWest, Nationwide and Prudential © GfK NOP Financial Research Survey (FRS) 6 months ending December 2014, 12,973 adults interviewed for motor insurance and 12,181 for home insurance. 2. Mintel Vehicle Recovery – UK, September 2014 3. Mintel Pet Insurance – UK, August 2014 and Mintel Travel Insurance – UK, February 2014 4. See note 2 on page 4