Direct Line Insurance Share Discussion Threads

[wba1] 09/5/2023 09:54

The cause of the reaction is a combination of the comments about 2022/3 claims development and the lack of detail on solvency. I am not sure I would have expected anything on the latter until the half years. The claims are interesting. There are 2 possible explanations (and it could even be partially both). First, they may have failed to adequately adjust reserves and/or set case reserving rules at year end. If so that is pretty poor given the noise they made. Secondly, it could be an acting CEO making a play for the permanent role by appearing tough and simultaneously stuffing reserves so, if he gets the role, he can produce a rabbit from the hat in the shape of better than expected results in 2024/5. This is usual CEO behaviour and Penny James was either unusual (or stupid) in not doing so.

I have added a few more at around what is now my average after buying down to 140 earlier. The test of this company in not Q1 2023 (or even 2023) but what happens from 2024 on.

[dope007] 09/5/2023 09:08

Bid is the only reason to hold in the short term. Previous top management have destroyed the company

[pete160] 09/5/2023 08:46

More chance of a bid coming, before any dividend

[cwa1] 09/5/2023 08:42

Paul Hawkins- @Hawkeye_74 on twitter- comment:-

#DLG still looking in a bad way. Solvency II not improved, but they don't even detail what it closed the qtr at.
So that's the divi off the table for the foreseeable.
At -30% YTD it could prove vulnerable to an opportunistic bid.

[unastubbs] 09/5/2023 08:39

#709 how true,..

[wall street trader] 09/5/2023 08:12

going to wait for this to settle and get back in

[dope007] 09/5/2023 08:09

UK mkt doesn't like anything UK

[cwa1] 09/5/2023 08:06

Market doesn't like it

[dope007] 09/5/2023 08:00

No. There will be no H1 dividend. I hold some, will probably add, but no chance of a dividend until next year imho

[wall street trader] 09/5/2023 07:53

So Dope007 is giving misleading information ?

[laurence llewelyn binliner] 09/5/2023 07:45

A dividend update will be in the H1 financial update in the summer..Good progress reported today on premiums and income where we are going in the right direction, with accounting practices giving us a tailwind into the H1/FY reports, profits will be reflected over time as inflation drops back and the adverse weather claims filter out..

[trader465] 09/5/2023 07:43

We have experienced further adverse claims development in respect of late 2022 and early 2023 in Motor (including Commercial Motor) particularly in relation to damage. This is expected to put pressure on earnings in 2023 including from prior-year reserve releases

[boystown] 09/5/2023 07:41

Is anyone going to the AGM? It could be entertaining!

[cwa1] 09/5/2023 07:40

JON GREENWOOD, ACTING CEO OF DIRECT LINE GROUP, COMMENTED

"Trading has been positive over the first quarter with premium growth across Motor, Home and Commercial and this trend has continued into April. Our focus continues to be on restoring the capital strength of the Group and improving Motor margins, where we have made good progress. Whilst 2023 earnings outlook continues to be challenging, the Group has many strengths, and we continue to take the actions required to drive business performance. Our ambition over time to generate a net insurance margin of above 10% remains."

No mention of the diviidend but that's probably to be expected due to the fact it is a Trading Update

[wall street trader] 09/5/2023 07:28

dividend is suspended ? can't see where it says that

[dope007] 09/5/2023 07:21

In the words of Willy Wonka."You get nothing"

[wall street trader] 09/5/2023 07:08

any mention of the dividend?

[pojscott] 08/5/2023 12:30

Seems all sell sell and the price is up???

[boystown] 08/5/2023 11:29

I think we've already seen the kitchen sink?

There'll surely be questions about intentions and expectations re dividends tomorrow, but they've previously stated "[We] will update the dividend outlook at the half-year results," so they might just stick with that line until H1 in August.

[garycook] 08/5/2023 11:11

News on the dividend is a priority for me, as well !

[smurfy2001] 08/5/2023 10:46

Kitchen sink time IMHO.

[boystown] 07/5/2023 12:17

Ha! Yes, quite so CWA1 - sorry :-)

I was kind of hoping wba1 might go and explain what it all means to a thicky like me - and when we're likely to see divi resumption.

[cwa1] 07/5/2023 12:02

Trading update and AGM expected but not tomorrow as it is a bank holiday. Tuesday instead

[boystown] 07/5/2023 11:01

Anyone going to the AGM to remonstrate tomorrow? :-)

Also - will they issue a trading update?