Direct Line Group has revealed plans to axe around 550 jobs as it looks to cut costs amid a turnaround at the insurer.

The group said it is consulting on the cuts as it seeks to save £50 million in 2025, although it stressed some of the role reductions will include vacancies no longer being filled.

Direct Line said it comes as its “drive to create a leaner and more efficient operating model is advancing”.

The cuts were announced in a trading update showing the group lost yet more motor insurance customers over the third quarter, with policyholders for its own-brand cover down 11% year on year at 3.05 million.

Chief executive Adam Winslow said: “We are in the early stages of a significant turnaround and our third0quarter trading is not yet fully reflective of the actions we have taken.”

He said trading in motor has been “challenging”.

But he added: “We believe the steps we are taking will position the company for enhanced profitability and growth.”