Direct Line, the insurer that is being spun out of Royal Bank of Scotland, today axed 70 senior executives including its chief operating officer as it tries to save £100 million a year by the end of 2014.
Jonathan Davidson, who left consultancy group McKinsey after 20 years to join Direct Line two years ago, “decided to leave” alongside Sheree Howard, managing director in charge of Solvency II, the major insurance-industry changes, the firm said.
Direct Line cut 900 jobs in September, including closing a call centre, in a bid to reduce costs: it wants to be spending £100 million a year less by the end of 2014.
The insurance group, which also includes the Churchill and Green Flag brands, employs about 15,000 staff overall. State-owned RBS was ordered by regulators to sell the business as a condition of securing its bailout from the Government.
The business was valued at more than £2.6 billion after 30% of it was floated on the stock market at 175p.
Shares in Direct Line today fell 0.5p to 192p.
