James, who joined Direct Line as CFO in late 2017, took over as CEO in May 2019 and steered the company through the pandemic when motor insurers performed well as restrictions limited the number of drivers on the road leading to fewer accidents.

The UK firm earlier this month unexpectedly scrapped the final dividend payout and forecast an annual underwriting loss after inflationary pressures and supply chain snags due to the pandemic and the Ukraine war pushed up the cost of motor repairs.

Extreme weather spells in Britain in the past year have also led to more claims due to subsidence and burst pipes.

The company appointed Chief Commercial Officer Jon Greenwood as acting CEO.

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Savio D'Souza and Dhanya Ann Thoppil)