Direct Line Insurance Share Discussion Threads

[jrphoenixw2] 15/4/2023 08:43

TR-1 Disclosure out today. Fidelity upped their stake from 5.55% to 7.11%.

[luckygit] 12/4/2023 22:19

The financial sector covers many different types of transactions in such areas as real estate, consumer finance, banking, and insurance.

[wba1] 11/4/2023 13:26

swiss paul; financial services is not insurance. One company I worked for was the insurance subsidiary of a bank. The bank management were utterly clueless about insurance. I think we agree broadly on the NEDs. Some need to go (but not all) and they need a top actuary on the board. As for actuaries not on the board; I still recall a CEO who would always take the final decision on reserving over his group actuary. Fortunately he was very numerate, very conservative and tended to stuff the reserves even more than the actuaries wanted. But opinionated CEOs are a risk in reserving.
I was not referring to embedded value - that is life assurance. In GI it is a case of hiding surplus reserves in IBNR, IBNER and any explicit margin for release to profit when needed.

[cousin jack] 10/4/2023 15:09

I went online at DL today to look at my car insurance details. Nothing was showing. I 'phoned them and they came up with some excuse that they had the wrong email address - despite their own site showing the correct one. After some faffing about they sent an email saying that if I verified the link my insurance would then be accessible. I completed the verification but still no details showing ! I then explained I needed a quote for an additional vehicle and for the basic information such as names, address etc was hoping they could simply use the information they already held. Told this was not possible.

Altogether not impressed by this at all. I've been with DL a long time but now looking elsewhere as the service level has definitely declined.

[jrphoenixw2] 05/4/2023 23:04

CWA1: 'This MAY have helped sentiment too:-
* Direct Line Insurance DLGD.L : Citigroup raises to buy from sell
* Direct Line Insurance DLGD.L : Citigroup raises price target to 188p from 136p'

Agreed. And that seems more than just a routine regrade, that's a significant change of opinion strikingly by-passing Reduce, Hold and Accumulate and skipping right over the top of them Sell > Buy.

Maybe something IS afoot, but it's not clear to what yet...

[wba1] 05/4/2023 14:44

swiss paul; I presume your background is not insurance. The only way to buck the market conditions is either to be a niche player or fraudulent (the last case being Independent Insurance 20 years ago). DLGs AY results are reasonably aligned with the market for both retail and commercial and the furore is because the CEO failed to pad the reserves in the past in order to smooth profits through the tough times. It is easy to replace the pilot in insurance - look at the swaps at Allianz (Colm Holmes from Aviva) and Hiscox UK (Jon Dye from Allianz). Insurance has more oversight than any industry (including banks) because of the presence of actuaries - which is why DLG's board needs an actuary. It is vanishingly rare that honest insurers (to distinguish from Independent and Michael Bright) compound past errors once they are found.

[swiss paul] 05/4/2023 11:49

Wba,A vehicle is only as good as the driver / pilot and the previous ones and to some extent the current ones are not worth the salary that us owners pay them.

[smurfy2001] 05/4/2023 10:55

As a potential recovery stock l don't think the bad news is over just yet. The CEO will I'm pretty sure kitchen sink the next results, isn't it normal practice? I'd like to see what he's going to do to turn the business around .

[boozey] 05/4/2023 10:41

Today’s move is all to do with a broker rating and not a lot else. Tax year end today.

[longwell] 05/4/2023 10:35

I have a large holding and was curious to sudden movement. Happened a few months ago as well.Not a trader just a holder for long-term. Do expect some consolidation in sector in next 12 months.

[southwinds] 05/4/2023 09:58

Someone has built a near 6% stake in the last two weeks. See announcements.

[wba1] 05/4/2023 09:55

Some very odd posts from new posters today. I will repeat;
* the departing CEO failed to reserve as expected in the good years but
* the accident year results reflect an awful market which
* will start to look better in 2024 and improve further in 2025.
* but the commercial business (NIG) is doing well and
* the rescue and fringe lines also are doing ok.
* DLG is vastly undervalued on a sum of the parts basis and
* in comparison with acquisition prices for Esure and Hastings.

The recovery was bound to happen and the only questions are how far and how fast, with my money on back to 200 by mid 2024 and 230 by mid 2025. All of this may be changed by a bid.

Yes, the CEO (and board) have presided over a mess, but that does not change the value of the performing parts of the business and the brands or the effect of the recovery in the retail market environment. I have continued to top up all the way down to 140 and am comfortable that I will see a good profit in time.

[boystown] 05/4/2023 08:32

Maybe the whole debacle; poor trading, no divi, was a ruse to enable the directors to top up!? :-)

[cwa1] 05/4/2023 08:31

This MAY have helped sentiment too:-

* Direct Line Insurance DLGD.L : Citigroup raises to buy from sell

* Direct Line Insurance DLGD.L : Citigroup raises price target to 188p from 136p

[deadly] 05/4/2023 08:28

ADM also on the up so must be business prospects.

[cwa1] 05/4/2023 08:27

Plenty of us here still. When there's something substantive or informative to post on I'm sure it'll get busier

[longwell] 05/4/2023 08:24

Hello anyone . I must be the only investor left?

[longwell] 05/4/2023 08:06

Shorts closing ?

[longwell] 05/4/2023 08:05

Offer Inbound ?

[longwell] 05/4/2023 08:04

Why the rise?

[covid 19 deal] 04/4/2023 13:59

I totally agree...these are pure ponzy scheme...they pay dividend even making loss..frying fish in another fish's oil....direct line vod ..pure ponzy scheme..untouchable ..

[diku] 04/4/2023 12:44

You buy shares in company you paying for their lifestyle...

[covid 19 deal] 04/4/2023 12:09

Executives just lining their pocket with investors money...