Direct Line Insurance Share Discussion Threads

[fenners66] 28/3/2020 12:52

Reinforces the idea that portfolios should be spread around sectors - some winners some losers but no one could have predicted the events of the past few months.

[warranty] 28/3/2020 08:13

Exactly encarter, DLG should be much less affected than many with the bulk of their policies being home and motor. People will still pay policies but more people at home = less burglaries and less driving means less motor claims. That’s probably why their share price has held up better than most other stocks and seems a good reason to add at these levels.

[encarter] 27/3/2020 13:38

I didn't say DLG sold life insurance. As for car insurance it's essential journeys only so obviously will be less cars on the road, less accidents and less claims.

[ajr171166] 27/3/2020 12:17

Travel companies, airlines and credit card companies would pick up the majority of risk on holiday cancellation as there is legislation in place to protect consumers. Insurance is last resort

[renewed1] 27/3/2020 10:39

Isn't the big risk to DLG the return they make on their investments which must surely take a big hit this year. Then again if we remain on lockdown for the rest of the year there will be nothing to pay out!!

[billy5] 26/3/2020 17:40

encarter

Thanks for that info, will just have to keep fingers crossed until ex date has passed on 13/4.

[fllegend] 26/3/2020 16:44

DLG doesn't sell any life insurance or annuities though. Travel is really the big hit they'll take from covid. Don't foresee significant amounts of people giving up driving completely to the extent it depletes their motor insurance book, and in fact people probably value a private car more now given fears over public transport. Home insurance is also pretty much unaffected.

[encarter] 26/3/2020 16:30

And life insurance.

[encarter] 26/3/2020 16:28

No. They could decide to cut it to preserve more cash in these uncertain times but it's unlikely. My feeling is that in 18 months time this situation would have been sorted and more people than ever will be taking out insurance especially holiday cover.

[billy5] 26/3/2020 15:55

Does the halting of the buy back programme have an effect on the Final dividend?

Thanks

[thepopeofchillitown] 16/3/2020 08:53

Churchill are Direct Line.

[speedsgh] 04/3/2020 10:59

FWIW...

Direct Line on road back to FTSE 100 -

Direct Line (DLG) may have been relegated from the FTSE 100 but Interactive Investor says it is showing signs of progress as it tries to drag itself back.

Full-year 2019 gross written premiums at the insurer have declined slightly to £3.2bn and profits fell 9.8% to £546m but analyst Richard Hunter said the numbers were still ‘fairly strongly ahead of expectations’. The shares rose 3.8% to 324p yesterday.

‘The fact that Direct Line has, to a large extent, trumped expectations has given the share price a welcome boost,’ said Hunter.

‘Indeed, the shares are beginning to knock on the door for a return to the premier index at these levels, which would be impressive given the previous share price decline of 13% over the last year.’

Hunter added that the ‘general direction of travel is positive’ and the market consensus has improved to a ‘buy’.

[fenners66] 04/3/2020 10:49

I agree that buybacks are a waste of time. Companies gambling that they know when to buy their own shares after signalling to the market they have money to burn - its the opposite of a stock overhang and when the buyback has finished and the demand has dried up the share price falls...

[renewed1] 04/3/2020 09:33

POrsche: Not to mention LLoyds!!

[guy_fawkes] 03/3/2020 13:52

NO special dividend and buy backs, trying to keep the share price above water so to speak.

[sufc555] 03/3/2020 13:46

Likely to be a larger market - vehicles available to more people

Unlike US - individual driver will still need to be insured not manufacturer

hxxps://www.abi.org.uk/products-and-issues/topics-and-issues/driverless-cars/

Lower crashes = less claims - vehicles still need to be insured - if they are damaged stolen etc insurers will benefit from driverless cars

[essentialinvestor] 03/3/2020 13:11

Agree with the buybacks in this case.

Look at their main business of motor insurance, it may be a
significantly smaller market in 10 years time ?.

Buffet has already highlighted this re Geico.

[porsche1945] 03/3/2020 12:43

I hope they dont pay the 900 leaving the £500, keep the money in the business for benefit of shareholders, ie owners.

[porsche1945] 03/3/2020 12:42

I agree, buy backs a total waste of time, look at Whitbread recently, share now about 40 pc under where they bought them back at and the shareholders benefitted not one bit from selling Costa. Should have just paid a special. The only reason for owning DL is the dividend, there is no share growth, or you just trade them, buy them when they tank after ex div each time and sell them on run up to next. I will stick to trading these from now on, otherwise its just another Ftse 350 dividend trap.

[eeza] 03/3/2020 12:40

Management like them because they flatter management's performance by goosing EPS.

Put spare cash where it belongs - intravenously into s/holders pockets.

[scrwal] 03/3/2020 12:25

I don't agree with share buybacks - they should have still paid a special dividend so not happy.

[speedsgh] 03/3/2020 09:38

"Proposed final ordinary dividend of 14.4 pence, an increase of 2.9% on 2018. Announcing a £150 million share buyback and awarding our people £500 of free shares each."

Rewarding staff is to be applauded; I wonder if the 800 losing their jobs will qualify for the share awards.

£150m share buyback this time round instead of 10.9p special dividend (£150m / 1375m shares in issue).

TOTAL FY 2019 - 21.60p
final - 14.40p/share (paid May 20)
interim - 7.20p/share (paid Sep 19)
-------------------------------------------------
TOTAL FY 2018 - 21.00p (29.30p incl special div)
special - 8.30p/share (paid May 19)
final - 14.00p/share (paid May 19)
interim - 7.00p/share (paid Sep 18)
-------------------------------------------------
TOTAL FY 2017 - 20.40p (35.40p incl special div)
special - 15.00p/share (paid May 18)
final - 13.60p/share (paid May 18)
interim - 6.80p/share (paid Sep 17)
-------------------------------------------------
TOTAL FY 2016 - 14.60p (24.60p incl special div)
final - 9.70p/share (paid May 17)
special - 10.00p/share (paid Sep 16)
interim - 4.90p/share (paid Sep 16)
-------------------------------------------------
TOTAL FY 2015 - 13.80p (50.10p incl special div)
special - 8.80p/share (paid May 16)
final - 9.20p/share (paid May 16)
interim - 4.60p/share (paid Sep 15)
special - 27.50p/share (paid Jul 15)
-------------------------------------------------
TOTAL FY 2014 - 13.20p (27.20p incl special div)
TOTAL FY 2013 - 12.60p (20.60p incl special div)

[rik shaw] 03/3/2020 08:24

14.4p final dividend, ex div 9 Apr, payable 21 May