direct line insurance group plc said wednesday that it has ditched dividend plans for 2022 due to higher weatherrelated and motor inflation claims in the fourth quarter affecting its underwriting result for the year the nonlife insurer said that its capital coverage is now expected to be at the lower end of its risk appetite range of 140 to 180 the londonlisted group sees total weather claims for the year namely due to a severely cold december at around 140 million pounds 1701 million ahead of the gbp73 million previously expected due to higher motor claims inflation during the quarter some in part due to weather conditions the group expects motor loss ratio in 2022 to be up by six percentage points direct lines investment portfolio was hit by a reduction in values of around 15 amounting to gbp45 million which was above initial expectations but in line with fourthquarter commercial property indices operating expenses will be reduced to around gbp700 million it said for 2022 the insurer sees combined operating ratio normalized for weather of around 102 to 103 for 2023 already written motor claims inflation should increase combined operating ratio by around 2 to 3 percentage points this compares to a target of around 95