Direct Line Insurance Share Discussion Threads

[sufc555] 09/11/2017 13:25

The impairment charge to which you refer will be less than 25m, the discount rate change is a much bigger issue. This is to be uplifted next year, if so I expect 2 special divi in 2018. This share is all about income, have a look at esure where there is a takeover upside potential if you want more capital risk

[garycook] 09/11/2017 13:03

Masurenguy.I contacted TMF,and the future projections for future dividends were taken from Digital Look,s website ? With the DLG Impairment charges yet to be declared,will there be a Special next year ?

[masurenguy] 09/11/2017 11:09

Royston Wilde at TMF likes DLG with a strong projected yield !

I reckon income seekers in particular should give Direct Line Insurance Group (LSE: DLG) serious consideration right now. Helped by an anticipated 55% earnings increase in 2017, the insurance colossus is anticipated to shell out a 28.5p per share dividend. As a result, the FTSE 100 star sports a monster 7.9% yield. A predicted 4% bottom-line dip in 2018 is expected to push the dividend slightly lower, to 28.2p.This projection still results in a mountainous 7.9% yield. And if today’s excellent trading update is anything to go by, I reckon current broker forecasts could receive healthy upgrades in the near future.

Direct Line advised today that gross written premiums rose 2.8% during July-September, to £907.2m, with the number of in-force policies rising 5.1% in the period to 6,838. The numbers illustrated the strength of the company’s brands across the motor, home business and car rescue segments, although its core motor division once again stole the show. Gross written premiums here advanced 7.1% in the third quarter, to £462m, while the number of in-force policies jumped 5.5% year-on-year thanks to strong customer retention. And with premiums rising across the industry, the stage is set for the insurer to keep growing revenues at a healthy rate.

Despite Direct Line’s sunny profits picture, the company is still pretty cheap, the firm sporting a forward P/E ratio of just 10.9 times. I reckon this value is hard to overlook.

[sporazene2] 07/11/2017 18:46

yes, but trend support has broken. it finished right on the 200 day MA so perhaps that will provide some support

[deadly] 07/11/2017 18:42

Back into bargain territory again.
The correction to the discount rate that negatively affected last year's results seems to have been forgotten.

[ccr1958] 07/11/2017 16:10

Situation normal, getting a 3% slapping on news as traders move on !!

[speedsgh] 07/11/2017 09:20

Trading Update for the first nine months of 2017 -

Highlights and outlook
· Own brands in-force policies grew across Motor, Home, Direct Line for Business and Green Flag year on year and quarter on quarter, particularly in the Direct Line brand.

· Strong momentum in Motor, with own brands policies up 5.5% compared to 30 September 2016.

· The actions taken on Home across claims and underwriting to mitigate the high escape of water claims inflation have resulted in encouraging improvements in claims experience.

· Annualised investment income yield of 2.6% is ahead of 2017 expectations due to portfolio positioning and some one-off benefits. Realised and unrealised gains net of hedging costs in the quarter were £3.4m.

· The Group is on track to achieve a combined operating ratio around the middle of the range of 93% to 95%, assuming a normal level of claims from major weather events.

Outlook
The strong performance in Motor for 2017 gives the Group confidence that even with the potential impairment it expects to deliver a combined operating ratio around the middle of the target range of 93% to 95%, assuming a normal level of claims from major weather events.

In line with the Group's previously stated targets, the full year business as usual expense ratio is expected to be lower than 2016 (24.0%) and the commission ratio is expected to be significantly lower. However, the reported expense ratio may be around or above the level in 2016, depending on the outcome of the impairment review.

The Group now expects to achieve a 2.5% investment income yield compared to its previous expectation of a 2.4% investment income yield and continues to expect a return on tangible equity ("RoTE") of at least 15%.

Beyond 2017, the Group reiterates its target of achieving a 93% to 95% combined operating ratio over the medium term, assuming a normal level of claims from major weather events, supported by reductions in its expense and commission ratios, and the Group reiterates its ongoing target of achieving at least a 15% RoTE.

[steve73] 07/11/2017 07:15

Q3 update.... no surprises there..

[speedsgh] 07/9/2017 11:11

IIRC the new discount rate originally proposed in Feb 2017 was -0.75%. DLG previously disclosed in its 2015 Annual Report that its claims liabilities, at that time, were calculated using a discount rate of 1.5%. So 0-1% is somewhat of an improvement on -0.75%, hence today's jump. The fact that the proposed law will not operate retrospectively is also +ve.

[sporazene2] 07/9/2017 09:23

good one SUFC

[sufc555] 07/9/2017 09:00

hopefully everyone invested yesterday!

Personal injury compensation reforms announced

The Lord Chancellor and Justice Secretary, David Lidington MP, will later today lay draft legislation before Parliament to change the way in which the personal injury discount rate is set. If enacted, the draft legislation will change the way in which the personal injury discount rate prescribed under section 1 of the Damages Act 1996 is set. Based on the evidence currently available the Government would expect that if a single rate were set today under the new approach the real rate might fall within the range of 0% to 1%, but the new framework will only apply if the proposed law is enacted and will not operate retrospectively.

Further details of the reforms will be set out later today on the gov.uk website”

A WMS will be made later this morning.




Paul Hughes Civil Law Team, Civil Law and Justice, Administrative Justice, Coroners, Burials, Cremations and Inquiries Division, Access to Justice 3rd floor 102 Petty France London SW1H 9AJ
07580 906942 or 020 3 334 3198

[sporazene2] 06/9/2017 21:48

are you referring to this

[sufc555] 06/9/2017 21:35

Google 'discount rate' - its in the BBC news section

[sporazene2] 06/9/2017 21:27

sufc do you have a link to share?

[deadly] 06/9/2017 21:11

Share spike? Looking like exactly the opposite is happening!

[sufc555] 05/9/2017 22:19

See Scottish government announcement today re discount rate in damages bill - looks rest of UK will follow resulting in share spike and special divi

[sufc555] 03/8/2017 15:37

hxxps://www.lawgazette.co.uk/practice/axa-and-aviva-defy-compensation-culture-to-boost-profits/5062352.article#commentsJump

discount decision delayed see link

[eaaxs06] 01/8/2017 12:18

Yes, me too, carer, very pleased with that after holding from the IPO.

The share price often spikes dramatically on good news, so I'll be looking to get back in before the end of the year.

[carer] 01/8/2017 11:19

Taken some good profits on this one! today is a happy day!

[skinny] 01/8/2017 09:07

Peel Hunt Hold 399.65 360.00 360.00 Reiterates

Shore Capital Sell 399.65 - - Retains

[sufc555] 01/8/2017 08:45

there is some uncertainty re reply to consultation - when the issue was debated in the house of lords the govt's rep indicated a reply to the consultation would occur by the 3rd - let's see

[gsbmba99] 01/8/2017 08:39

Dividends declared since IPO 137.3p vs 175p IPO price = 78%. On current projections dividends will probably exceed IPO price by May-19. I haven't reinvested dividends in DLG for 18 months but CAGR total return still about 26% in 4.75 years since IPO.

[essentialinvestor] 01/8/2017 08:31

Many congrats to those holding.