Direct Line Insurance Share Discussion Threads

[marmar80] 06/5/2020 08:34

Good update here and good indicator for the AA update tomorrow. Insurance companies on reduced number of claims should be not lower than before covid.

[lord gnome] 06/5/2020 07:39

Yes, impressive. They come across as caring and I like that a lot.

[casino444] 06/5/2020 07:20

very positive from direct line this morning , they appear in a lot better shape i guess then many companys out there at the moment

[porsche1945] 29/4/2020 19:41

@wba1

I already own large blocks of Allianz Zurich and Munich re having sold out of equally useless aviva and put the money to work there. Why AXA? 50 pc share upside/great yield.

[jrphoenixw2] 27/4/2020 11:58

Re sufc/1247^. I understand it was the govt that vetoed insurance co divs. There would be logic if the rationale of preserving cash on the books led to the buy-backs halting too. On the bright side, growing cash on the books might help propel DLG back into the FTSE100. We saw how it flopped when it was demoted, so... fingers crossed eh?

I prev floated at #1243^ 'One to keep an eye on closer to the next FTSE 1/4ly reshuffle; DLG is currently just within range for promotion to the FTSE-100. Next valuation/cut-off is 3 June, and those changes will happen on 22 June.
A/o the close of last week 9-Apr there were six FTSE-100 stocks facing demotion. Of the FTSE-250 possible risers, DLG was in 6th position (!)'

That now reads 'A/o the close of last week 24-Apr there were *seven* FTSE-100 stocks facing demotion. Of the FTSE-250 possible risers, DLG was in *4th* position.

[sufc555] 21/4/2020 18:20

Fair points

[wba1] 21/4/2020 16:01

sufc555;
whilst I agree with your core point, the comparison with Admiral is inappropriate. Admiral are more like a broker than an insurer as they reinsure a huge proportion of their risk, predominantly to Munich Re. This has been their model from the start and means they are exposed neither to claims volatility or the sort of solvency capital requirements of a real insurer. Amazingly the deal with Munich Re also provides a huge profit commission based on loss ratio. I can only assume Englehardt had incriminating photos of the Munich Re board when they did the deal.

[wba1] 20/4/2020 22:17

Why Axa? If you want to switch to global insurers why choose the worst managed of all? Allianz and Zurich have better management and, in Allianz case, a stronger global position combined with a better portfolio of group companies. This is a genuine question as I wonder if I have overlooked something.

[porsche1945] 20/4/2020 17:42

The only reason to hold this pos was the divi, had zero reason to stop paying it, UK as always the biggest basket case, have switched to AXA, better upside, euro denominated and better dividend (still being paid) Exiting all uk investments, country has had it, basket case.

[wba1] 19/4/2020 10:26

encarter;
there may be a small, but not material, impact on DLG. They write business interruption as an extension to business property cover. Whilst it does not cover pandemic, it does cover impact from supply chain disruption. How far this stretches would need to be tested in court. However, any impact will be swamped by the reduction in loss ratio (and COR) due to fewer road accidents and burglaries.

I am treating DLG as a trading opp rather than a long term hold. I prefer Sabre (on pure quality of underwriting) and Aviva (for 5 year recovery) for the long term. But I was interested in the FTSE100 comment.

[jrphoenixw2] 14/4/2020 15:38

One to keep an eye on closer to the next FTSE 1/4ly reshuffle; DLG is currently just within range for promotion to the FTSE-100. Next valuation/cut-off is 3 June, and those changes will happen on 22 June.
A/o the close of last week 9-Apr there were six FTSE-100 stocks facing demotion. Of the FTSE-250 possible risers, DLG was in 6th position (!).
Of course 3 June is a looong way off, but the 'enforced' FTSE-100 index tracker fund buying IF it were promoted would be a joy for longs to see.
The only site I know for keeping a weather-eye on the FTSE promotion/demotion zone has the look of a long-running (15 years!) home-based project; still useful though.
hxxp://www.stockchallenge.co.uk/ftse.php [change the 'hxxp' to 'http' to create a working link].

If anyone else has another source for following these prom/dem candidates I'd be interested to see it - Thx.

[encarter] 13/4/2020 19:30

No they're not.

[oniabsta] 12/4/2020 18:59

Anyone know if DLG are affected?

[billy5] 11/4/2020 06:55

GARYCOOK

Thank you for that, apologies for not checking back.

Maybe all is not lost, see what they say on 6th May.

[billy5] 10/4/2020 19:50

Is that the end of the dividend for 2020 or is there a possibility of some hand out when things become more normal, what is their intention.

Thanks

[farrugia] 09/4/2020 12:53

that's right tomleafs but that's the cash part in the balance sheet. I'm looking at net debt. Sorry my figures above are of net debt

2017: -523 million Net Debt
2018: -319 million Net Debt
2019: -126 million Net Debt

[essentialinvestor] 09/4/2020 11:22

Anyone who sold yesterday was mugged imv.

[tomleafs] 09/4/2020 08:53

From the annual report they state cash and cash equiv of £1,358.6m in 2017, £1,154.4m in 2018 and £948.6m in 2019. Where are you getting your figures?

[farrugia] 09/4/2020 07:34

why is their cash balance declining year on year?
2017: 523 million+
2018: 319 million+
2019: 126 million+

[essentialinvestor] 08/4/2020 14:37

Had a few.

[encarter] 08/4/2020 14:33

The divi will be back so well worth holding imho. And buying.

[porsche1945] 08/4/2020 11:21

Very little reason to own this dog anymore, shocking how quickly all these financials have dropped dividends, hasnt happened in the US or europe, all still paying, as usual shxthole uk suffers worse.