Direct Line Insurance Share Discussion Threads

[wba1] 21/3/2024 09:18

Worse than I expected and no obvious route to diversifying risk, although I appreciate we await the 'strategic review'. The comment about no prospect of prior year releases in the short term suggests they did not take decisive action on this front when they found the under reserving. Other motor insurers are still releasing from prior years and even Sabre, which found similar holes, has released in its latest numbers. The numbers are also flattered by an exceptionally benign cat year. I have not gone into detail in the numbers as yet but my first reaction is that I would now take the offer on the table. I am wondering whether to cash in the rest of my holding or await Ageas next move. To my mind the best aspect of these results is that they may encourage others out of the woodwork.

[pander45] 21/3/2024 09:01

Nothing to underpin, value wise, why the two previous offers have been declined. No argument at all presented. When the next one comes in this will be a done deal.

[pander45] 21/3/2024 08:25

250 looks good value and will seal the deal.

[alex1621] 21/3/2024 08:24

The dividend was a token to sweeten investors. I suspect the dividend would have been zero without the Ageas bid. No guarantee on dividends from this update. Roll on bid number three.

[garycook] 21/3/2024 08:24

DLG Direct Line Insurance Group FTSE 250 211.5p 4p Final 1.89% DLG 21-Mar-24 Dividend Announcement 04-Apr-24 XD Date 17-May-24 Payment Date.

[speedsgh] 21/3/2024 08:13

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."

[pander45] 21/3/2024 08:08

Final bid coming in here. It needs taken over.

[jubberjim] 21/3/2024 07:51

Nice to see some sort of dividend but nothing to inspire adding at these levels.

Will hold what I've got but the dividend doesn't even begin to cover the anticipated rise in premiums.
Await the takeover being raised and then cu later

Good luck everyone.

I ask again

Skinny How on earth do you get the results out before I have even wiped the sleep out of my eyes.

Are you an A.I Bot

All the best

[sharequote] 21/3/2024 07:50

At least they have reinstated dividend and slash costs so hopefully gives shares a boost in next few days

[laurence llewelyn binliner] 21/3/2024 07:50

Great to see a dividend, but a 4 pence final (1.9%) is lower than most were hoping for, however the bulk of losses are now down on paper and worked through with the SCR rebuilt and many cost savings to come..

See what AGS think it is worth next..!

[alex1621] 21/3/2024 07:44

Door open to Ageas. I can see institutions demanding that they take the bid seriously, if it comes.

[thepopeofchillitown] 21/3/2024 07:41

Slashing costs. May reassure the market.

[huckers] 21/3/2024 07:29

Kitchen sinking? Worst version of the state of the business presented. But with a token dividend to ask for patience?

[elbrus55] 21/3/2024 07:28

Results look pretty awful to me.They have sold a big chunk of their business for cash, a lot of which is going to cover their remaining loss making business.Holding back capital well above 180pc target implies they are concerned about further losses in 2024.Not sure what the market was expecting but it looks bad to me.

[chriss911911] 21/3/2024 07:16

To summarise if all goes well, the earning might support market value of 3.5bn, so just 10% above what was bid, makes no sense, oh, I will pay you half what you were getting, I know you can get double that risk free, but stick with me.

I suppose the 3.1bn bid, gives an underpin, of sorts, but they rejected in favour of a strategy to attempt to get value up unremarkably.

Likely to just drift, don't see a reason to invest.

[nellynell] 21/3/2024 07:03

Hehehe Dividends are back as I said:-)

[skinny] 21/3/2024 07:01

Financial summary

- Stable policy count overall as the introduction of over 700,000 new Motability customers offset lower policies elsewhere primarily in Motor and associated Rescue.

- Gross written premium and associated fees increased by 27.1% during 2023, with 46.2% growth in the second half.

- Net insurance margin of minus 8.3% was impacted by the continued earn through of Motor policies written during 2022 and first half of 2023. Outside of Motor, the Group delivered a good result and a net insurance margin of 12.2%.

- In Motor, premium rate increases contributed to a 5.8 percentage point improvement in the current year net insurance claims ratio in the second half of 2023. Motor policies written since August estimated to be in line with the Group's ambition of a net insurance margin of above 10%.

- Operating loss from ongoing operations of £189.5 million in 2023, compared to a loss of £6.4 million in 2022, with the adverse movement in the net insurance margin partially offset by an increase in investment income. The proceeds of the sale of the Group's brokered commercial business contributed to a profit before tax of £277.4 million, up from a loss before tax of £301.8 million in 2022.

- The Group's solvency capital ratio at the end of 2023 improved to 201%, following significant management action and benefiting from the sale of the brokered commercial business. A dividend of 4.0 pence per share is proposed, with the solvency capital ratio, post-dividend, equal to 197%.

[fenners66] 21/3/2024 01:01

Strangely enough - I then go on to read this article which , says in a roundabout way , very similar things....

[fenners66] 21/3/2024 00:49

wba1 - whilst I understand how the market works and how they have competed for as long as ...

what I said was "learned to operate as a cartel in the last year and they all
now realise that not competing is the best way for them all to make serious money."

and that once their margins and ratios have recovered then we may see some break ranks.

I come to this conclusion having seen many renewals having the same difficulty , and some providers exiting the market. All the insurers that I had seen previously competing were setting significantly higher premiums - they all had the same excuses , but not the same previous fails.

Given it was previously a competitive market - this looks too orchestrated - I am not saying they have had any conversations - just that they all coincidently decided at to go for much higher premiums - learned to operate in the same way a cartel would and stop fighting each other.

I liken it to such as the last few years of supermarkets - "Aldi prices matched" - great so they admit their prices were too high ?
NO.
I knew products were cheaper in Tesco than Aldi so put off buying them in Aldi - only to find out they were price matched - Tesco had put their prices UP.

They clearly could have left the stock on the shelf the same price as the day before - but why not make More profit , after all inflation was the excuse right ?

[jason29] 20/3/2024 17:57

Came so close to selling these today. Didn't. Hoping I don't come to regret in the morning as if these Results disappoint in any way can see them back at 160 pretty quick.

[carpingtris] 20/3/2024 17:34

Exciting times!

[laurence llewelyn binliner] 20/3/2024 17:22

At last, it is decision day after a year of no income from DLG and the long wait for dividends to be re-instated, see what we get in the morning... ;o)

Yes, and we are back to 250 pence PDQ without any interference from AGS, and in the face of a bid being rejected twice the BOD need to spell out why they have under valued the companies shares...

[nellynell] 20/3/2024 15:14

Dividends here we come :-)