Direct Line Insurance Group (DLG), now part of Aviva, was fined £10.6m, discounted from £21.2m for disclosure of the accounting errors to the regulator ‘at an early stage’ by the Prudential Regulation Authority (PRA).

The PRA said the incident occurred ‘for a significant period of time’ at Direct Line’s subsidiary, UKI Limited, for nearly two years between 1 June 2022 and 23 August 2024, before the acquisition by Aviva.

The fine related to ‘several material commercial transactions which took place in 2023, ongoing remediation, as well as changes to accounting rules for insurers’, the PRA said.

The finance team at UKI Limited miscalculated balance sheets during 2023 and 2024, resulting in the company ‘overstating its solvency to the PRA and to the market’.

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