PUBLICATION OF 2016 ANNUAL REPORT & ACCOUNTS

AND NOTICE OF 2017 ANNUAL GENERAL MEETING

28 March 2017

Direct Line Insurance Group plc (the "Company") has today published its Annual Report & Accounts for the year ended 31 December 2016 ("Annual Report") on the Company's website at www.directlinegroup.co.uk/investors/annual-report.aspx

The Company announces that it has also, today, made available to shareholders the following documents:

·      Notice of 2017 Annual General Meeting ("Notice of AGM")

·      2017 Annual General Meeting Form of Proxy ("Form of Proxy")

The Notice of AGM can be found at:

www.directlinegroup.com/AnnualGeneralMeetings

The Annual Report, Notice of AGM and Form of Proxy are being sent to shareholders today. In compliance with Listing Rule 9.6.1, these documents will shortly be available for inspection on the National Storage Mechanism at: www.hemscott.com/nsm.do.

The Company's AGM will be held at 11.00am on Thursday, 11 May 2017 at the offices of Allen & Overy LLP, One Bishops Square, London E1 6AD.

For further information, please contact:

Notes to readers:

·      This notification is introducing the proposals contained in the Notice of AGM, which should be read before taking a decision. The notification is not a summary of the proposals and should not be regarded as a substitute for reading the Notice of AGM.

·      The notification has been prepared in accordance with Disclosure and Transparency Rule 4.1 and should not be regarded as a substitute for reading the Annual Report.