Saatchi & Saatchi, which was informed of its victory this morning, beat WCRS, which works with the Direct Line Group brand Churchill, Karmarama and M&C Saatchi to the business.
M&C Saatchi has worked with the brand since 2005, when it won the business from CHI & Partners. CHI & Partners had picked up the business a year earlier in a pitch against M&C Saatchi.
Mark Evans, the group 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."
Direct Line Group retained MediaCom to its £85 million media planning and buying business in August 2013 after a competitive pitch.
The Direct Line brand spent £46 million on media in the 12 months to the end of September 2012, according to Nielsen.
Camilla Harrison, the chief executive at M&C Saatchi, said: "We wish them well for their next chapter."