Tuesday, March 7, 2017

Direct Line special dividend stymied by Ogden rate

Changes to the rules governing compensation for serious injuries have derailed UK insurer Direct Line’s plans to pay a special dividend.

Speaking to the Financial Times on Tuesday, chief financial officer John Reizenstein said that, before the changes, the insurer had been in a position to consider a special payout with its final results.

Last week the UK government announced a change to the so-called Ogden rate, which governs the way that payments for seriously injured people are calculated. The reform will lead to a big increase in compensation payments, hitting both the insurance industry



source http://www.omnipopmag.com/2017/03/07/direct-line-special-dividend-stymied-by-ogden-rate/

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