Insurer Direct Line's Q1 gross written premiums rise 4.2 pct

LONDON, May 4 (Reuters) - Direct Line Insurance Group reported a 4.2 percent rise in first-quarter gross written premiums from continuing operations on Wednesday, in line with expectations.

Britain's largest motor insurer said in a statement that gross written premiums rose to 777.8 million pounds ($1.13 billion) in the quarter from a year earlier, compared with a company-supplied consensus forecast of 776 million pounds.

The FTSE 100 company, whose brands include Churchill, Green Flag and Privilege, retained its forecast to achieve a full-year combined operating ratio from continuing operations between 93 percent and 95 percent.

A number below 100 percent indicates a profit.

Direct Line saw net investment losses of 7.7 million pounds in the quarter, however, following the sale of some high-yield assets. These were in the energy sector, a Direct Line spokeswoman said.

($1 = 0.6872 pounds) (Reporting by Carolyn Cohnn and Noor Zainab Hussain)