Direct Line Insurance Share Discussion Threads

[saltaire111] 04/4/2019 09:46

Phew.
Thanks.

[cwa1] 04/4/2019 09:18

XD, special and ordinary

[saltaire111] 04/4/2019 09:12

Wtf? What happened?

[wolansm] 02/4/2019 13:01

Black rock divi will be woww

[jrphoenixw2] 02/4/2019 11:52

@sufc - Googling that gives me 26/Mar/19 'BlackRock raises stake in Direct Line Group'

Summary: 5.08% > 10.13%



1.375Bn Shares in Issue [DLG website] *10.13% = approx 139 million.
139Mn * say 356p = approx £495 million.

Wow.

[sufc555] 02/4/2019 08:25

Blackrock - American investor fund takes 500m long position as takeover rumours swirl

[micos] 30/3/2019 06:37

Rik Shaw,

I am much obliged.

[micos] 29/3/2019 15:25

Can anyone out there help me to access investor information for DLG. Their site is most unhelpful

[wolansm] 13/3/2019 11:15

After yesterday debacle, DLG are right to hold some cash back, perhaps after the uncertainty and illogical demands by out of touch people, ie our members of parliament we could eventually see the cash distributed via interim divi or other

[speedsgh] 06/3/2019 13:30

Direct Line's dividend disappointment -

This high-yielding insurer has not been so generous this time, so what are the shares worth now?...

[garycook] 06/3/2019 10:14

guy fawkes.It could have been lower.Remember the Snow this time last year.DLG had some big payouts to make,but have recovered well.Be thankful.DLG still yielding over 8%.

[guy_fawkes] 06/3/2019 10:10

The total dividend fell 17.2% to 29.3p per share.

[speedsgh] 06/3/2019 09:06

Direct Line battles through pricing squeeze -

Insurers are suffering a price squeeze at the moment but Direct Line’s (DLG) cost savings and brand strength should allow it to hold its own, says Hargreaves Lansdown.

The insurer reported operating profits of £601.7 million for 2018, 6.4% lower than the previous year as an increase in own-brand policies failed to offset several large white label agreements coming to an end – notably with Sainsbury’s and Nationwide Home.

Analyst Nicholas Hyett said longer term the increased proportion of own brand sales is good news as ‘the lack of commission payments to partners mean own brand sales are potentially higher margin and direct access can also make them stickier customers’.

‘It’s not all plain sailing of course – the personal insurance industry is going through one of its periodic pricing squeezes…and Direct Line hasn’t escaped unscathed,’ said Hyett.

‘However, the strength of the group’s brands mean it seems to be holding its own for now, and cost savings elsewhere in the business have allowed Direct Line to hike marketing expenses this year. If marketing pounds are well spent that bodes well for the future.’

The shares edged 2.3p lower to 353.9p yesterday.

[jrphoenixw2] 05/3/2019 14:23

Seems fine to me, the div as is is generous [IMHO]. Better super-reinforce the roof now just in case of turbulence in the near-term. Those in for the long-term will see the capital released back into future divs, and meanwhile the balance sheet (and SP) should rise in parallel to reflect this added contingency.

- One 'negative' comes to mind as a ps/thought... any other company that was considering taking over a company in DLG's sector will now find DLG a more expensive proposition to swallow...

[speedsgh] 05/3/2019 08:46

Part of the reason for a slightly lower special dividend this year...

Strong capital position with solvency capital ratio of 170% (after proposed dividends) reflecting prudence given current political and economic uncertainties.

After both dividends the solvency capital ratio will be 170% as at 31 December 2018. [31/12/2017: 165%]

The Board has taken into account the high level of political and economic uncertainty, including in relation to Brexit, and considers it appropriate for the time being to maintain a prudent solvency capital ratio towards the upper end of the solvency capital ratio risk appetite range of 140% to 180%. The Board will keep this position under review as it monitors developments in the political and economic environment. In normal circumstances, the Board expects the Group to operate around the middle of its solvency capital ratio risk appetite range.

EDIT: @wolansm - jinx! ;o)

[phda] 05/3/2019 08:34

I was hoping for a little rise on these results. Should get a decent run up to Xdiv date all being well.

[guy_fawkes] 05/3/2019 08:01

Total dividend down on last year by 6.1p.

[woodhawk] 05/3/2019 07:39

Quite agree Gary, nice little earner!

[garycook] 05/3/2019 07:37

Only expecting around a 26p Divi with the Special,but 29.3p is a bonus.Now yielding 8.2%.Great company for income.

[cwa1] 05/3/2019 07:17

Results out



Snippet:-

STRONG RESULTS AND DIVIDS DRIVEN BY A RESILIENT BUSINESS MODEL

Paul Geddes, CEO of Direct Line Group, commented

"I am pleased to announce a strong set of results driven by our resilient business model which performed well in a highly competitive market. We have added a million direct own brand policies since 2014 showing that our customers value our brands, propositions and service.

"Together, our diversified product and channel portfolio and disciplined approach to underwriting have produced operating profits of GBP601.7 million, a combined operating ratio of 91.7% and a 21.5% return on tangible equity. As a result, the Board is able to announce a final dividend of 14.0p, an increase of 2.9% on last year, and a special dividend of 8.3p.

"We enter a pivotal year of operational delivery in 2019. This includes starting the roll-out of the latest generation IT systems for personal lines, following the successful launch of our new systems for small businesses in 2018, which we believe will deliver benefits for customers, colleagues and shareholders over the coming years. This aims to provide the springboard from which to deliver a step change in both capability and efficiency to help to grow the contribution from current-year profitability.

"This gives us the confidence to continue to target a combined operating ratio of 93% to 95% in 2019 and over the medium term.

"It gives me great pleasure to be handing over to Penny James as our next Chief Executive Officer with effect from the AGM in May. Penny's expertise as our Chief Financial Officer and the breadth of experience she brings from previous roles will be invaluable as she leads the business. I've worked closely with Penny for over twelve months and have been impressed by her drive, energy and ambition for the Group. I am pleased to be leaving the Group in such experienced and capable hands."

[floridamassive] 13/2/2019 20:04

Plus looking forward to a tasty ~30P divi in April :). Solid buy!

[floridamassive] 13/2/2019 20:00

These are a golden buy, especially at the current ridiculously low share price These are worth over £4 any day, Prem results announcement on 5th March, I expect these to be at their intrinsic value by middle of next month :).