Direct Line Insurance Share Discussion Threads

[essentialinvestor] 09/10/2019 19:31

Wllm, hope it comes good for you.

I've got this on a longer term watchlist. Held here in the past.

[wllmherk] 09/10/2019 17:29

these are killing me, falling every day like a dripping tap. My biggest holding getting crushed. Hope the results on 8th Nov give some respite but how low will they be by then ?


wllm :(


PS In too deep to sell out.

[gswredland] 08/10/2019 08:03

Beginning to look cheap to me. Still on the sidelines. Dividend is well covered and over 10%.

[wllmherk] 04/10/2019 21:39

Thanks flleg, hope these recover,

wllm

[speedsgh] 04/10/2019 16:32

This is the announcement released by the FCA this morning via the rns service...

FCA General Insurance Pricing Interim Report -

[fllegend] 04/10/2019 16:03

@wllm home insurance is on average cheaper than motor because there isn't the added cost from parasitic elements that exist in motor, such as whiplash claims and credit hire. Home insurance is always a direct customer to insurer relationship, it's not based on liability towards third parties.
Don't forget also that Privilege and Churchill are also DLG brands, so even if you don't see so many Direct Line home policies as motor, there are a lot more Churchill ones.

[bingham] 04/10/2019 15:48

My fault i`m afraid, I bought on Wednesday.

[wllmherk] 04/10/2019 15:14

Home insurance is pretty cheap in comparison to car insurance I find. I haven't studied their policy breakdown in great detail but I always assumed DLG was more about insuring cars than homes or am I mistaken?

Why don't the FCA get more involved with the Woodford scandal than intervening in the perfectly functioning insurance market where consumers have plenty of choice?
If I auto-renew my insurance policy instead of taking a bit of time to find the best deal then surely I take responsibility for paying more. Where does it end, should we price cap food and make supermarkets charge the same for food products. I shop at Morrisons when my shopping would be cheaper at Aldi's should Morrison's prices be capped at a level similar or the same as the budget stores?

This week has been a nightmare on the market for me, DLG far and away my largest holding, not looking forward to totting up this week's losses.

wllm

[essentialinvestor] 04/10/2019 13:11

Ah right, thank you.

[fllegend] 04/10/2019 12:18

Re. differential between Admiral and DLG share price hit - Admiral has a much smaller home insurance portfolio than DLG. The FCA has identified that big profit margins and hiking prices on renewal is much worse in home than motor, so the negative impact on margins will likely be much bigger in home market than motor.

[essentialinvestor] 04/10/2019 12:13

Just noticed the price!.

Thought I'd missed a buyable low a few weeks back.

What I don't understand is why DLG appears to be hit disproportionately re Admiral?.

Even allowing for Admirals earnings outside the UK.

[eaaxs06] 04/10/2019 11:09

Was looking to get back in, if the old low of 278.8 from early September held.

Luckily I didn't have a limit order set, so I'll give it a few more days and see what level it bottoms out at.

[fllegend] 04/10/2019 10:55

I've been pretty bullish about this in the past but the suggested remedies in the FCA interim report are very worrying for investors. The profit margins in motor insurance are wafer thin and I've mentioned before that DLG is notable for rarely having ever exceeded 100% combined operating ratio, whereas many others, particularly the smaller ones that have to pick up high risk drivers, do exceed 100%, which means they are making an underwriting loss (premiums are not covering cost of claims + operational costs + commission to price comparison sites or brokers).
If FCA mandates automatic switching to the cheapest premium it will devastate the market, because there are plenty of companies out there under charging for what the risk represents. This will be even worse than the things going on in energy utilities, where only really small suppliers have gone bust. If they go for a draconian measure even mid size to big players will be very badly hit.
I have never been a libertarian ideologically in the past, but the phrase the bureaucracy is expanding to meet the ever expanding needs of the bureaucracy really comes to mind this morning.

[smithp1] 04/10/2019 10:45

Might be time to get out if centrica is anything to go by

[jrphoenixw2] 04/10/2019 08:59

For those who haven't FT access:
'Six million insurance policyholders not getting a good deal, says FCA
Around six million insurance policyholders pay high prices and are not getting a good deal, according to the City regulator.

The Financial Conduct Authority (FCA) made the comments as it published an interim report into the pricing of home and motor insurance.

If those customers paying high premiums paid the average price for their risk they could save around £1.2 billion a year, the regulator said.

It is considering remedies to improve competition, which could include banning or restricting practices such as raising prices for consumers who renew year on year or requiring firms to automatically move consumers to cheaper equivalent deals.
[...edit.../continues in long depressing detail]
The regulator intends to publish a final report and consultation on remedies in the first quarter of 2020.

[smithp1] 04/10/2019 08:46

Kind o similar to what is going on in the energy sector, just don’t want a race to the bottom though

[wllmherk] 04/10/2019 08:31

To be honest, if people are too lazy or too stupid to shop around they deserve to pay higher prices. I'm getting fed up with regulators crushing my shares.

wllm

[cwa1] 04/10/2019 08:25

This perhaps?

[smithp1] 04/10/2019 08:12

I think regulation is keeping this under pressure some report out this morning

[cwa1] 04/10/2019 08:07

Well I've had a little nibble this morning. Anyone know what's been scaring the horses of late?

[essentialinvestor] 19/9/2019 16:57

I have this on a watch list, looks like some of you guys have called the low.

Can highly recommend Green Flag fwiw.

[ajr171166] 19/9/2019 16:48

Big volume bought late today, perhaps on an upward turn now as should be trading around 3.40 at least

[peteret] 19/9/2019 14:21

Why is this climbing today