8 September 2017

Penny James to succeed John Reizenstein as CFO of Direct Line Group

Direct Line Insurance Group plc (the "Company") announces that Penny James will join the Company as Chief Financial Officer-designate and the Board as an Executive Director on 1 November 2017;  she will succeed John Reizenstein as Chief Financial Officer ("CFO") on 1 March 2018, all subject to the usual regulatory approvals, and following the signing off of the 2017 Accounts.

John will be retiring as CFO and Executive Director to pursue a non-executive career. He will not seek re-election at the Company's 2018 Annual General Meeting (expected to be in May 2018) and will accordingly step down from the Board at that time.  Penny will work with John in order to support an orderly transition.

Penny is currently Group Chief Risk Officer and Executive Director at Prudential plc where she is responsible for leading risk oversight globally.  Prior to this she was Director of Group Finance at Prudential.  Before joining Prudential, she was Group CFO at Omega Insurance Holdings Limited and CFO, UK General Insurance, at Zurich Financial Services.  Penny has been a Non-Executive Director of Admiral Group plc since January 2015. Penny will be leaving the Boards of Prudential plc on 30 September 2017 and Admiral Group plc with immediate effect.

Mike Biggs, Chairman, said: "Succession planning is a key area for the Board and the appointment of Penny demonstrates our commitment to seeking to attract diverse and effective leadership to drive and deliver our ambitious strategy. I would like to welcome Penny to Direct Line Group, and I would like to thank John for his significant contribution to the Group and outstanding stewardship over the last seven years."

Paul Geddes, CEO, Direct Line Group, said: "I am delighted that Penny is joining Direct Line Group.  She brings a wealth of invaluable experience to the role, as well as an enthusiasm that will be a great fit with Direct Line Group's culture.  At the same time, I will be sad to see John leave.  He has been instrumental in leading Direct Line Group through a transformational period - from a division of a bank, through a successful IPO, to being an independent listed company."

John Reizenstein said: "It's been a privilege to play a part in the development of Direct Line Group as a successful FTSE 100 insurer. The Company has great prospects and I wish Penny and the team every success in pursuing the Direct Line mission of making insurance much easier and better value for customers."

Penny James said: "I am delighted to be joining Direct Line Group which is a business I have long admired for its clear vision, customer focus and strong market position. I look forward to working with such a strong leadership team to build on the success achieved to date, as the business positions itself for the opportunities ahead."

Note to Editors

1.   Penny James will receive an annual salary of £675,000 and a pension allowance of 25% of salary. She will also be able to participate in the Company's existing annual incentive plan up to a maximum of 175% of salary and the long term incentive plan up to 200% of salary. Penny will also receive awards to compensate for remuneration arrangements forfeited on leaving her previous employer. All remuneration arrangements are consistent with the terms of the Directors' Remuneration Policy approved by shareholders at the AGM in May 2017.

2.   Any payments relating to the departure of John Reizenstein will be in accordance with the Remuneration Policy approved by shareholders at the Company's 2017 AGM and will be disclosed in the Directors' Remuneration Report to be contained in the Company's Annual Report and Accounts for the year ending 31 December 2017.

3.   No other information is required to be disclosed pursuant to paragraph 9.6.13R of the Listing Rules in relation to Penny's appointment as a Director of the Company.