Saatchi & Saatchi was informed of its victory on 21 March. The agency beat Karmarama, M&C Saatchi and WCRS, which works with the Direct Line Group brand Churchill.
Mark Evans, the marketing director at Direct Line Group, said: "Saatchi & Saatchi demonstrated they were the partner best able to meet our ambition for the Direct Line brand. They showed outstanding strategic planning capability, coupled with compelling creative communications.
"This is an exciting juncture in Direct Line’s evolution and we look forward to working with them as we move forward."
Saatchi & Saatchi will begin work on the account after a short transition period, subject to contract negotiations.
Magnus Djaba, the chief executive of Saatchi & Saatchi, said: "It’s a great feeling to meet clients who, right from the start, you enjoy working with. We can’t wait to build on a relationship that I know will enable us to deliver great work and results."
MediaCom retained Direct Line Group’s £85 million media planning and buying business in August 2013 after a separate pitch.
M&C Saatchi has worked with the brand since 2005, when it won the account from CHI & Partners. CHI had picked up the brief a year earlier in a pitch against M&C Saatchi.
Camilla Harrisson, the chief executive at M&C Saatchi, said: "We wish them well for their next chapter."