DIRECT LINE GROUP CUTS 70 SENIOR POSTS

UK-based insurer Direct Line Group (DLG) has announced that 70 senior posts will go, on top of 900 job losses at lower levels announced last month. Chief Operating Officer Jonathan Davidson is to leave the company, with elements of the role and the office being devolved to other parts of the executive. Sheree Howard, Managing Director for Solvency II and Executive Projects, will also leave. Chief Information Officer Angela Morrison will join the Executive Committee. Henceforth she will report directly to CEO Paul Geddes. The key elements of Solvency II development have moved to the Finance & Risk functions, with Chief Risk Officer Jose Vazquez overseeing them. Many of the senior posts will go at the company's headquarters in Bromley, Kent. Mr Geddes said that "we are creating a simpler more efficient business which costs less to run. I don't make these changes lightly and we will do all we can to support those affected". He added that "following the successful completion of our separation from RBS Group and our recent IPO, the timing is now right for us to make these changes. As market leader, these changes are essential for us to succeed in a competitive marketplace". DLG is targeting a 15% return on equity now that it is a standalone operation. Previous owner Royal Bank of Scotland has spun off a 30% stake and will sell the rest over the next couple of years.