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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Direct Line Insurance Group Plc | DLG | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 193.50 | 16:35:12 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 192.40 | 192.00 | 194.70 | 193.50 | 193.50 |
| Industry Sector |
|---|
| NONLIFE INSURANCE |
| Announcement Date | Type | Currency | Dividend Amount | Ex Date | Record Date | Payment Date |
|---|---|---|---|---|---|---|
| Interim | GBP | 0.076 | 11/08/2022 | 12/08/2022 | 09/09/2022 | |
| 08/03/2022 | Final | GBP | 0.151 | 07/04/2022 | 08/04/2022 | 17/05/2022 |
| Interim | GBP | 0.076 | 12/08/2021 | 13/08/2021 | 03/09/2021 | |
| 08/03/2021 | Final | GBP | 0.147 | 08/04/2021 | 09/04/2021 | 20/05/2021 |
| 08/03/2021 | Final | GBP | 0.147 | 08/04/2021 | 09/04/2021 | 20/05/2021 |
| 04/08/2020 | Special | GBP | 0.144 | 13/08/2020 | 14/08/2020 | 04/09/2020 |
| Interim | GBP | 0.074 | 13/08/2020 | 14/08/2020 | 04/09/2020 | |
| 07/12/2018 | Interim | GBP | 0.072 | 08/08/2019 | 09/08/2019 | 06/09/2019 |
| Interim | GBP | 0.072 | 07/08/2019 | 09/08/2019 | 06/09/2019 |
| Top Posts |
|---|
Posted at 23/3/2024 16:44 by wba1 elbruss55; what you say about pricing is true but especially in the aggregator channel. In the direct channel there is the added factor of propensity to buy which can be factored in. There are several quite sophisticated suppliers of software and models which do this. It pretty much started with Earnix 20 years ago and I know DLG used them at one time. Not sure who they use now (or if they rely on in house).I am sorry for those who bet on an increased offer but still expect the share price to recover to close to the offer level over the next 12-18 months. I will look to get back in if the price goes to circa 190. I would probably have been happy to buy in at anything below 200 except that I used spare funds to top up Phoenix following results. My broader advice would be not to get too greedy on DLG (unless another bidder emerges). The 2024 results will be greatly improved and 2025 better still, but motor price rises have stalled and I think 2025 will be the peak profit year for the market in motor. Of course, DLG has a lot of improvement possible, not just in motor pricing but in both processes and other lines so may be better placed to manage the next downturn in the pricing cycle. But it is and will remain heavily exposed to the motor pricing cycle. Still, if it can be bought at 190 I would be happy to cash out if it reaches 235 sometime in the next 18 months. Good luck all. ps; elbruss55; I hold LRE (and have done so for circa 10 years without trading). I do so for its dividend record which is volatile but a high average due to periodic returns of surplus capital as specials. I am not as familiar with Conduit. Do they follow a similar approach? |
Posted at 22/3/2024 06:52 by speedsgh Dividend won’t solve Direct Line’s problems - Direct Line (DLG) has reinstated its dividend after swinging to a profit last year, but Hargreaves Lansdown says investor confidence won’t be restored overnight. The Citywire Elite Companies A-rated insurance group reported a swing to a £277m pre-tax profit last year after suffering a £302m loss the year before, allowing it to reinstate its dividend at 4p per share. Analyst Matt Britzman said the dividend was a ‘welcome relief to investors’. ‘Things have picked up, but there’s a long way to go before this turnaround is complete,’ he said. ‘It’s no secret that Direct Line has struggled over the past few years to deal with a challenging motor insurance market.’ However, a new chief executive and an improving market means it is back to writing profitable business and changes are underway, including a £100m cost saving plan. ‘Recent takeover news has propped up the shares, and they’ve remained at those elevated levels despite the board rejecting the offer,’ said Britzman. ‘Yes, performance is improving and guidance at least offers a glimpse of hope for better things to come. But there’s still a question about whether that’s to do with a better market in general than Direct Line’s own doing.’ The shares were unchanged at 211.7p yesterday but have gained 14% this year and 44% over the past 12 months. |
Posted at 21/3/2024 08:13 by speedsgh Has nobody noticed that the company's current dividend policy is under review?..."The Board is proposing a dividend in respect of 2023 of 4.0 pence per share (£52 million) reflecting the Group's strong capital position following the sale of the brokered commercial business and good performance in Home, Commercial and Rescue. While the Board is confident in the actions taken in Motor, it recognises that the period over which to judge the sustainability of Motor's capital generation has been short and consequently this dividend should not be regarded as a resumption of regular dividends. The Board will update on any changes to its dividend policy, alongside the conditions it has previously set to consider restarting regular dividends, in July to coincide with its planned strategy update." |
Posted at 19/3/2024 19:36 by wba1 pete160;the SBRE results were decent but, looking at the read across, 6.6 points of the COR improvement came from turn around in prior year contribution. Of the near 10 point improvement in COR only 3 points came from accident year improvement. It seems clear that Sabre acted early and fully to fill their reserving hole and the question is whether DLG did likewise. If they have things look positive since, as Sabre note, the 2024 accident year loss ratio will improve (and substantially) off the earned premiums written at much stronger rates in 2023. Obviously the 2023 DLG results will look inferior to Sabre as they took the hit to prior year in their 2022 results whilst DLG took a hit in H1 2023 but as long as prior year effects appear to have returned to normal patterns in H2 I will be ok. Given the early action on both reserving and pricing by Sabre I will be very surprised if DLG results look similar (not at absolute level but in terms of trend). It would require a miracle to offset the later pricing and reserving action. The real question will be the absence of any new nasties or strengthening, the outlook and where they intend to go to restart growth ex-rating and diversify risk. |
Posted at 18/3/2024 13:54 by nellynell While Direct Line Group (DLG) is busy turning down takeover proposals, it’s business as usual for the insurer – recently extending its partnership with connected car data and devices provider Trakm8.The tie-up, which began in 2014, has been extended for a further two years. In an emailed announcement, the telematics supplier noted: “Trakm8 will continue to provide insurance data services and devices to Direct Line Group, including Trakm8’s advanced connectedcare data sets and AI-driven (artificial intelligence) FNOL (first notification of loss) crash algorithm.” When the partnership came to life a decade ago, Trakm8 initially supplied hardware for DLG’s then newly introduced DrivePlus Plug-in offering. At the time, Trakm8 executive chairman John Watkins said: “This is a key milestone for Trakm8, as Direct Line Group launches a step-change in telematics for UK consumers. This proposition accelerates the awareness of telematics as an effective tool to improve driving skills and reduce fuel costs. “We look forward to building on this relationship further as consumers adopt the Plug-in device.” Nearly 10 years later, Watkins’ camp is happy to remain a DLG partner. “We are delighted to extend our partnership with Direct Line Group and are looking forward to working with the team to help facilitate innovative and market-leading AI-driven solutions,” Watkins commented this time around. Meanwhile Steve Williams, DLG head of telematics and EV (electric vehicle) strategy, had this to say: “We are pleased to extend our contract with Trakm8 and look forward to seeing the partnership extend to over 10 years. “Providing value to customers is a top priority for us, and by working together with Trakm8 we can continue to deploy telematics solutions to keep drivers on the road for less.” |
Posted at 14/3/2024 14:41 by pete160 On the contrary nelly,The poor performance of Aegas - showing that they are not committed to buying DLG, will hopefully bring forward more serious bidders (albeit I doubt until after the results now). DLG is after all still 'on sale' and any bidders now know that a price of 275-300p is likely to clinch it (particularly if after results and Aegas deadline of 27th sees the share price collapse below 190p) I'm an investor here since before the dividend was cancelled, and as much as I want to see the dividends resumed, I think it will be a very very long time - if ever, that they will reach the level they once were and /or the market forgives their previous errors. (PJ was not acting alone and I am not confident that all of the rot has been cut out). As declared previously, I only remain holding here waiting for an exit point where I do not lose my original capital. I suspect that point will come quicker from a bidder than waiting for new management to rebuild. As an aside, I think that whoever has been advising Aegas needs a kick up the behind. They've no doubt spent millions on bankers and the only result seems that Aegas are now a target themselves having highlighted their own weak /desperate strategy. |
Posted at 11/3/2024 13:39 by wba1 I can understand those leaning to giving DLG a chance to turn around, although my view is that being a near monoline personal lines operator in a highly cyclical market makes that a leap of faith. I would certainly take 270p. I cannot understand the comments about there not being other insurers with as attractive dividend prospects. Putting to one side the questions of when and at what level DLG divis will be reintroduced, it is easy to buy Aviva at a 7% yield (and I have it as well as DLG). It is interesting to use recent DLG valuations to look at Aviva.Aviva has a current market cap of £15 billion. Looking at the different business lines; Av has circa £3bn of UKPL compared to the £3.4bn for DLG. That suggest a value of £3bn for that business line. Av has £3.2 bn of UKCL compared to circa £0.65bn for DLG NIG. That suggests a value of £3bn for that business line. Av has £4.3bn of Canadian GI GWP. Worth £4bn? Av still has international interests in China, India and Singapore worth £1.5bn? Av Investors must be worth £1bn Av Insurance Wealth and Retirement makes over £1bn pa in operating profit and nearer £2bn in operating value added. It must be worth £10bn plus. Add that lot together and you get a sum of parts of £22.5bn plus - 50% ahead of current market cap (and I am being conservative by ignoring bid premiums and the value of strong market positions in both the UK and Canada. What is the relevance to us? Firstly it demonstrates that you can invest elsewhere in the sector for a very nice yield which is strongly asset backed and in a more diversified company with a solid recent record. So there is no need to support DLG due to lack of other options. Secondly, this suggests that if Generali are looking for prey then it will not be Aviva as the price would be much too high for their firepower. That pushes Ageas up their target list and makes a deal for Ageas with DLG an even higher priority than otherwise. |
Posted at 04/3/2024 16:55 by pete160 Bravely and /or foolishly, I've trebled my stake here today.My view is that: Aegis are not going to go away after just one initial approach - they will already have drafted a game plan before (leaking?) the first approach. They now know the reaction of the market - both theirs and DLG, and can finalise their next step(s). It's a matter of how much more and with what element (cash or shares) they come back with - my view is that it will be a bit of both. Their interest will have led other interested parties to dust off and bring forward their plans (many bidders for UK companies will be wanting to get deals done before a change of Gov't) DLG management will need to sharpen their pencils on their forthcoming results, particularly in relation to the speed and size of reinstatement of a dividend (effectively they will be setting out their own case for the defence) I was surprised that there wasn't much /any coverage in the weekend press, but by next weekend after digesting the budget, other 'sources' will be talking. In the meantime, the gentle daily increase in the share price reflects that not many people are selling. IMO, the next approach (depending on DLG's result perhaps) will be 250p (going straight to 270p will make them look foolish - unless they wish to put in a figure to scare everyone else away?) after which another bidder or activist investor will push them to 260-270p to seal the deal. |
Posted at 28/2/2024 18:03 by wba1 It is worth looking in a bit more detail at the synergies;The two companies (DLG and Ageas) have circa 13000 UK employees. I cannot believe a 10% reduction is not possible. DLG bring various capabilities not present in Ageas UK which can be exploited; - body shops and other repair capabilities - rescue, which can replace/xsell to Ageas customers - Darwin as a test bed DLG brings scale which, added to Ageas existing business, should shave costs for external factors such as reinsurance It should be possible to merge some activities and products onto common systems. Pricing analysis should ensure reduction of lost premium where DLG and Ageas compete. DLG's database is both bigger than that of Ageas and brings data in areas where Ageas will lack data and expertise. Similarly, Ageas will also bring some data expertise in areas such as RIAS. The distribution capabilities are complementary. It may be possible to rebuild a broker commercial operation using DLG brands off the back of Ageas CL knowledge and broker base. Alternatively, the NIG knowledge held in DLG will benefit Ageas (even if the sale of NIG makes that a benefit they will deny). Ageas is international and most overseas markets are much less developed in direct distribution (and in pricing techniques). If Ageas wish they can transfer DLG expertise to other subsidiaries. These would just be my starting points. In any situation like this the starting point in data rooms will be reserve strength. Future reserve releases can be a big part of a valuation. I am assuming that, after recent strengthening, this will turn out to be in line with usual expectations. |
Posted at 08/11/2023 00:18 by garycook Taken from Hargreaves Lansdown View on DLG. There's no let-up for drivers as Direct Line continues to push through higher prices. A 37% increase in the cost of average motor insurance from this time last year is mammoth, but it's been a necessary evil.It's been tough recently; claims numbers have been running high, while cost inflation means underwriting profitability has been under serious pressure. Add headlines and charges around overcharging customers, and here lies a business that needs to grapple back some momentum. Recent results have provided just that, and mark a pivot point as the cycle looks like it might finally be turning. Motor's been the division under the cosh and makes around 45% of active policies. That's enough to mean unprofitable contracts written over the past 12-18 months have weighed on recent performance. But aggressive price hikes look to have finally caught up with inflated costs. That means policies written today look to be at levels in line with a net insurance margin of around 10% - back in the land of profit. One key thing to remember is that insurance profits are realised over the life of the policy. That means 2023 will still have unprofitable policies to roll through. It probably won't be until 2024 that we start to see the benefits of better-priced policies feed down to the profit line. Aside from Motor, performance across other business lines has been pretty good. Home insurance is a big part of the operation and remains profitable despite an uptick in claims inflation. Price hikes are again being called on, leading to a drop in customers - not just in Home but in Motor too. That's part of the strategy though, margins are being prioritised over volumes in the current climate and is something we can get behind. Alongside results came the announcement that the group intends to sell its brokered commercial insurance business, NIG. It's been a strong performer, so the logic behind the sale is strategic rather than forced. One key advantage will be rebuilding the capital buffer, which was a little low. We would urge caution on the forward dividend yield; restoring the dividend requires the NIG deal to go through, and continued signs of improving Motor profitability. Both look more likely than not, but it won't be at least until full year results that we find out. There's uncertainty, though, which adds risk and remember, no returns are guaranteed. All in, the picture looks better than it has for some time and at current valuations, there's plenty of scope for re-rating should conditions play out favourably. But we think other names in the sector have managed recent times a little better, and investors should prepare for the rest of the year to be challenging. Direct Line Group key facts Forward price/earnings ratio (next 12 months): 7.5 Ten year average forward price/earnings ratio: 10.9 Prospective dividend yield (next 12 months): 8.9% Ten year average forward price/earnings ratio: 8.0% |
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