Direct Line and Aviva agree to not pay dividend

The decision comes after rival Legal & General said it would make its own dividend payment to shareholders.

Direct Line said it would make no changes to staffing until at least the autumn as it weighs the damage the coronavirus shutdowns has had on the insurance industry.

The UK's biggest motor insurer said it had seen a falloff in claims for car accidents as motorists stayed in their homes but that travel insurance claims were steadily rising hitting £22m so far.

Direct Line has two regional offices in Leeds, on The Headrow and on Neville Street, near to Leeds Station.

Penny James, CEO of Direct Line, said: "It is too early to assess the impact of changes in customer behaviour that will arise given the broader consequences of Covid-19.

"We know that dividend income from DLG is important to our investors and through them the people who may look to that income to support their pensions and savings, but we have taken the prudent and difficult decision to withdraw the full year 2019 dividend.

"We understand that these are challenging times for everyone in the country and we will continue to make the decisions needed to protect the long-term interests of the group for the good of our customers, our people and our investors."

Aviva said it remains too early to quantify the impact of coronavirus on claims expenses in its life and general insurance businesses.

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