Direct Line Insurance Share Discussion Threads

[garycook] 16/11/2020 06:08

Recently sold ADM because of making a nice profit,and the dividend is now only 3.84%,and switched into DLG for the 7.5% plus yield.Also a possible 20% upside from here.Sabre ok,but only Yield,s 4.78% atm.

[sufc555] 15/11/2020 20:33

All good, save for you that fact you fail to mention the changes in personal injury claims due to come in April
2021 - saving DLG circa 250m per annum

hxxps://www.mass.org.uk/news-press/mass-in-the-media/mass-media-2017/insurers-will-winners-consumers-losers-personal-injury-reforms-economic-study-shows/

[wba1] 15/11/2020 15:33

Direct Line is a trading share (and an excellent income share if that is your need) but expecting it to top 400 again is very optimistic. On the plus side (and short term) 2020 (and 2021 to some extent) will produce significant excess profits from lower claims, although the CEO will probably stash a lot of this in surplus reserves so published results will understate the excess. The surplus reserves accumulated will then enable profit flow to be smoothed, maybe up to 2025. The problem (going forward) lies in the FCA pricing report. Direct Line are horribly exposed to a ban (or lesser clampdown) on dual pricing (low year one rates followed by price hikes on renewal). In excess of 50% of their earned premium is benefitting from this practice (on retail lines, especially motor and household) and this is not well balanced by other unaffected business as is the case with most competitors (such as Aviva). If the FCA are determined to reduce this practice I would estimate the increase in the motor loss ratio for Direct Line (in the absence of general rate increases which would make them less competitive) would be in excess of 5% - a huge hit. So whilst Direct Line earnings look secure for 3-4 years the longer outlook is muddy.

For trading purposes in this sector Sabre is an interesting alternative. It shares some features of Direct Line (a premium rating to some competitors and a reliable income/divi) without the downside (no exposure to the FCA). I used to be on the ABI Motor Committee and know both companies well. Sabre is the quality play in the retail sector (along with Admiral, whose business model is more that of a broker than primary insurer). All of them have trading potential and offer value at present, but Direct Line would be my third choice. I think one thing that is obvious is that much of the insurance sector has been downgraded due to wider market sentiment than because of fundamentals.

[garycook] 15/11/2020 08:50

CO,Good move 350p.Could go to 400p again if FTSE hits 7,700 again

[cl0ckw0rk0range] 14/11/2020 04:01

Bought the bottom here as well huh? Gonna... sell.... the.... top?Yawn.

[energeticbacker] 13/11/2020 12:24

This week sees another of Investor’s Champion’s Income Booster stocks reinstate its dividend, along with positive trading reports from several of their other dividend picks. #ba. #dlg #land #ng

[encarter] 12/11/2020 10:25

Plenty more than 3 times. I sold mine yesterday for a 20p profit and will be happy to buy back at 270p.

[mo123] 11/11/2020 09:51

BERENBERG RAISES DIRECT LINE TARGET TO 362 (356) - 'BUY'

[encarter] 11/11/2020 08:59

Plus the divi if you time it right

[jonnybig] 11/11/2020 05:36

Which is why dlg is such a great trading share. You can trade this at 10% profit at least 3 times a year. 30% annual gain. Sweet.

[father jack1] 10/11/2020 14:04

A solid yet uninspiring set of figures from a solid yet uninspiring company. The share price will oscillate between 280-340 until next April when they will announce a similar final year figure and dividend to last year.

[saltaire111] 10/11/2020 08:53

Nothing particularly surprising but a bit of a damp squib all the same.

Hopefully the new tech will drive some unbudgeted efficiency through the next 12 months.

Insurance is one sector where AI should have a really positive impact on cost reduction.

Salty.

[timmy11] 10/11/2020 08:21

green flag up
own brands up

[city1911] 10/11/2020 08:04

Try working for one lol

[lord gnome] 10/11/2020 07:53

Nothing in it to set the pulse racing - but that's why I am here. If I wanted excitement I wouldn't be investing in insurance companies.

[dope007] 10/11/2020 07:50

No issues with the update. Seems robust in the circumstances

[jonnybig] 09/11/2020 13:34

Great timing this vaccine news. Will give dlg a nice springboard for what will hopefully be a good update tomorrow, then another spike leading to another easy profit take for jonnybig. Dlg is a great trading share. Bounces nicely in a profitable range.

[city1911] 07/11/2020 19:40

They have been doing this for months and months. They didn't advertise it that's all

[father jack1] 07/11/2020 14:10

Television advert informing you can apply for a refund for reduced usage. Looks like they caved to the FCA.

[cwa1] 06/11/2020 16:42

Much obliged though, to be honest, I almost always use the skip header tab so didn't really bother me! It just struck me as being rather long and I was confused as to the connection with DLG...

Personally I think it looks better after the haircut but don't want to rain on your, or anyone else's, parade-so feel free to populate the charts as you see fit :-)

[eaaxs06] 06/11/2020 16:21

CWA1

Yes, as Vinceelliott atates, they were a mixture of holdings and shares I was interested in when I started the thread, over 6 years ago.

I've tidied it up and just left the FTSE chart showing, if there are any other relevant ones you'd like me to add, just post a message in this thread.

[vinceelliott] 06/11/2020 09:19

Cwa1 - pet shares of thread author.

[mister md] 06/11/2020 08:43

all of those are great dividend income plays (+ recovery stocks)