Direct Line Insurance Share Discussion Threads

[p winky] 08/3/2021 07:24

I like that.

[sufc555] 24/2/2021 21:49

I’m not sure how relevant your point is re solvency capital ratio since dlg’s current rating is about double that required by ‘tedious’; regulations ie solvency 2 - last August it was 192% - possibly will now exceed 200% given the current low level of new rta claims. This excess capital is dlg’s choice in exceptional circumstances - hopefully those who hold and then sell pre ex divi will be burnt either by a takeover or significant buy backs

An increase in IPt will have zero negative affect upon share price - the last significant increase in this tax 33% increase in 2015 actually resulted in an increase in the share price - and was in fact one of the best years for dlg

However we shall see

[porsche1945] 24/2/2021 14:13

@sufc

I’m alluding to capital buffers etc you idiot.

On another point, I own 40k of these to trade out as usual about 1.36 just before ex dividend, would buy more but worried Sunak will raise insurance premium tax, country is utterly bankrupt low productivity, they will have to raise revenue somewhere. Will wait until after 3rd March.

[speedsgh] 24/2/2021 13:55

At the finals last year they announced a £150m share buyback (equivalent to 10.9p per share) instead of a special dividend.

The 14.40p 'special' announced in the interims in Aug 2020 (paid Sept) was of course merely the delayed payment of the previously announced FY19 final dividend which had been cancelled in the wake of the emergence of the Covid-19 crisis.

Will be interesting to see if they opt for share buyback or a special this time. The latter would certainly be preferable from a personal viewpoint.

[speedsgh] 24/2/2021 12:04

Notice of 2020 Preliminary Results -

Direct Line Insurance Group plc ("Direct Line Group") will release its 2020 preliminary results on Monday 8 March 2021 at 7.00am (GMT).

Management will host a live webcast for investors and analysts at 11.00am (GMT) on 8 March 2021. Joining details will be provided on the Direct Line Group website.

[sufc555] 22/2/2021 20:48

Section 143 - I think - rta act 88 is legal requirement to have motor insurance for most motor vehicles on the public highway

[sufc555] 22/2/2021 20:36

Without ‘ tedious regulations’ there would be no DLG - direct line has returned more than £2.5bn in cash to shareholders since I started investing - with more to come

[porsche1945] 22/2/2021 11:41

This is one of the most boring range bound stocks there is on world dog index ftse350. Stick to trading it, roughly a range of 3/3.38, once maybe twice a year, its a good pop, get out just before ex div each time, altho always risk UK’s dogsxxt government can bring yet more misery for insurers with higher premium tax or tedious regulations, probably reasonably safe buying around the 3 mark, and maybe a takeover bid while holding with a takeout at high threes always a possibility. Just shocking how dire U.K. indexes are, brexit covid political basket case and worse, the companies all seem to have dated declining business models.

[coxsmn] 17/2/2021 14:45

Other companies wfh have managed to get their results out on time, poor show.

[speedsgh] 26/1/2021 17:06

Tailwinds abound for Direct Line, says Berenberg -

A transformation at Direct Line (DLG) means the insurer looks set to overcome many of the issues it had been facing, says Berenberg.

Analyst Thomas Bateman reiterated his ‘buy’ recommendation and increased the target price from 362p to 395p on the stock, which closed down 1.5%, or 4.9p, at 316p yesterday.

‘Direct Line has undergone a period of transformation in recent years as it has sought to restructure the earnings profile of the group and modernise its distribution model to bring premium and earnings growth back,’ he said.

‘We now believe that the headwinds it has been facing are diminishing and the tailwinds will begin to take hold.’

Bateman added that the group trades at a discount to peers at only 11x 2021 earnings per share ‘despite generating over a 19% return on tangible net asset value’.

‘The market values Direct Line as a company with declining earnings. However, as earnings begin to grow, the valuation multiple will rise,’ he said.

[lord gnome] 24/1/2021 19:33

Heard it all before, although it wouldn't surprise me. Who is 'they'?

[sufc555] 24/1/2021 19:27

Rumour that they are considering a bid - have owned 10% of dlg in the past - anyone heard anything as to size of bid £5 would be £6.5bn Mrk cpt

[thewheeliedealer] 04/1/2021 23:34

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion includes DLG and some other Insurance Stocks. We also chatted about loads of other Stocks and Ideas for research and a fair bit of educational stuff with regards to Investing and Portfolio Management.

Anyway, if you use Youtube, Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 39) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful, we try to keep them light and they are totally unscripted, not like all the stuffy financial fodder you are probably more used to !!

Happy New Lockdown !! WD
@wheeliedealer

[wba1] 04/1/2021 22:04

As I said, it must be at an early stage (if it exists), prior to any recognition of terms which would amount to an offer. Ironically, the small print in the Entain rns clarifies some of the requirements for disclosure in such circumstances. 'Sounding out' a potential target does not trigger an announcement; anything much beyond such informal soundings does. One of the things you are told (along with 'fiduciary duties') when joining a board. But if there are any unofficial soundings happening with DL they can only come from a small number of possible companies and would be more likely than not to progress (unless this is a case of PE on the prowl).

[fenners66] 04/1/2021 20:25

If that was the case how do you square that with the announcement today that Entain are rejecting the second approach from MGM today ?

No one was told about the first approach until today.

[wba1] 04/1/2021 10:15

They would be required to put out an announcement if they were in talks. I can believe something is going on, but it must be at very early, unofficial stage in the absence of an announcement. Small AIM companies may sail close to the wind with such requirements; FTSE250 companies do not.

[casino444] 04/1/2021 07:51

yes maybe its just a matter of time before there taken out , could already be in talks i guess

[sufc555] 30/12/2020 10:12

Be careful re selling - takeover rumours circulating - reported in times

[thebutler] 30/12/2020 09:54

Took another 10%+ profit today. Third in a year. Great trading share, my favourite along with SBRE and CSN.

[mike24] 30/12/2020 09:40

CO-OP insurance (car & home) seem to have
shot themselves in the foot, having been sold off
and rebranded Soteria Insurance, long term loyal policy holders
receiving details of this in the last few days, will question
this move, many possibly looking for alterative quotes,
life insurance is being plugged on TV under CO-OP logo
but changing long established brand name on car insurance is risky

[deadly] 30/12/2020 08:40

Strong today; any news?