LONDON: UK’s exporter-heavy FTSE 100 closed higher on Wednesday, buoyed by gains in commodity-linked stocks, while insurer Direct Line plunged to the bottom of the mid-cap index after cancelling its final dividend for 2022.

The blue-chip FTSE 100 advanced 0.4%, its highest since August 2018, while the more domestically focused FTSE 250 gained 0.7%.

The FTSE 350 nonlife insurance index housing Direct Line and Admiral dropped 23.5%, its biggest fall in six months, after the insurer scrapped its final dividend for 2022 following a surge in claims.

“Saving money by not paying a dividend is one way to preserve cash, yet the thousands of pensioners owning the stock (Direct Line) for income won’t be happy,” said Russ Mould, investment director at AJ Bell.

“Direct Line has historically been a generous dividend payer and a lot of people have got used to a growing stream of cash rewards from the business.”