Home Business News FTSE 100 rises as Direct Line boosted by discount rate change

FTSE 100 rises as Direct Line boosted by discount rate change


Shares in Direct Line were boosted by a change to the formula for calculating personal injury payments.The government had originally proposed cutting the Ogden discount rate on personal injury claims from 2.75% to minus 0.75%. However, it is now suggesting a rate of 0%-1%.Shares in Direct Line, which had said the original plan would cost it up to £230m, rose 3%.The FTSE 100 index was up 4.15 points in early trade at 7,358.28.In the FTSE 250, shares in Bovis Homes jumped 10% after the housebuilder announced plans to return £180m to shareholders through special dividends, and also scaled back the number of homes it planned to build each year.ZPG – the owner of the Zoopla and uSwitch websites – was up 5% after it announced the purchase of comparison website Money.co.uk in a £140m deal.But shares in Capita fell 5% as the company marked its 2016 operating profits lower after adopting new accounting standards.The company said its 2016 operating profit was now £335m, down from its previous estimate of £481m.On the currency markets, the pound was flat against the dollar at $1.3045 but fell 0.3% against the euro to 1.0917 euros.
Source: BBC