Direct Line Insurance Share Discussion Threads

[cwa1] 30/8/2023 08:57

I do kind of wonder just how much "kitchen sinking" there will be in these results to ensure the new CEO starts off with a clear table? I know if it were me I'd want to open every cupboard, shake every skeleton and get all the bad news out of the way to ensure I could say: "wasn't me guv, all down to my predecessor". And at the next set of results I can say: "look at how clever I am, I've turned it round straight away".

Just a, possibly cynical, thought!

[tuftymatt] 30/8/2023 08:25

Yes I will be watching the results and the reaction too before topping up.
I hope I am able to as I do think there is a good business in there somewhere but it just needs good leadership to get it back on track.

No divi expected but you never know.

Good luck all 👍🏻

[laurence llewelyn binliner] 30/8/2023 07:34

New leadership, with a growth/recovery strategy should signal a turnaround for the struggling share price too, although up from the lows of 135 to 160 pence, we clearly still have a long way to go..Results and dividend (hit or miss) next week for starters..

[stoopid] 24/8/2023 13:50

Let's hope so, my average here is 200 so would love tonnes a return of a dividend. Its been a year since it was suspended.....

[tuftymatt] 23/8/2023 16:28

Not many I hold that are close to their August high right now so does that bode well for what's to come from the company in a few weeks time?

I have been burned by DLG, like many, and hold at a much higher average right now so will wait for the figures before adding but could we finally be on a proper turn up?

Good luck all 👍🏻

[wba1] 23/8/2023 14:59

On the subject of a new CEO, I may be being a bit unfair to Winslow. I had similar concerns when Amanda Blanc was appointed at Aviva (with no numbers background other than general management) and she has done an excellent job. Admittedly the Aviva issues were strategic rather than core performance but she does show that a strong leader can make things happen. Even better was that she did this despite Aviva appointing George Culmer as chair around the same time (who presided over a period leading up to the Irish disaster at RSA when he was CFO). So fingers crossed that DLG get it right as well.

[smurfy2001] 22/8/2023 12:20

Direct Line Insurance Group plc (“Direct Line Group”) will release its 2023 half year report on Thursday 7 September 2023 at 7.00am (BST). Management will host a live webcast for investors and analysts at 9.30am (BST) on the same day.

[wba1] 21/8/2023 17:52

I agree that I would expect the divi to be reinstated at a lower rate, although nominal may be a bit OTT. Just coming back to Adam Winslow and my concern. He is a general manager with a distribution (ie sales) background. He has no expertise in finance, actuarial matters or claims analysis. He may be a good leader and able to build a team with these qualities but in a recovery situation I would prefer the CEO to bring their own skills in these areas in order to be able to challenge the advice they receive. Of course, Penny James was a finance person and it did not help, but for me that just says the new CEO needs both the character and background.

[laurence llewelyn binliner] 21/8/2023 14:21

Anything is better than nothing of course, but would a token dividend send the right signal to holders to stay for it, with funds better getting a better return with another insurer AV or LGEN..?

A nominal dividend will help the recovery shoring up the balance sheet and supporting the SP, the stronger the dividend the more the share will get bought..? but it is a long slog back to 300p from 150p..

A strong CEO appointment would help restore confidence after PJs tenure overseeing such poor risk management..?

[dope007] 21/8/2023 13:39

No way will divi be re-instated to full. It will be nominal and then rebuilt up

[laurence llewelyn binliner] 21/8/2023 13:05

#wba1, what is your view on the H1 and dividend news potential next month..?

Reinstated to full
Reinstated but nominal
Another miss to further strengthen the balance sheet..?

Either way it will be interesting.. :o)

[wba1] 21/8/2023 12:08

Interesting about Adam Winslow. He has a good background and my one concern would be his reputation as a very political operator. I would have preferred them to look at Charlotte Jones, the CFO, if raiding Aviva as the recent past suggests DLG would benefit from a few years of laser focus on the numbers.

[laurence llewelyn binliner] 21/8/2023 07:15

#City1911, good find, thanks for sharing, some news on a CEO appointment with the H1 update and a reinstated dividend (hopefully) now the balance sheet is 200M stronger from cancelling the FY will go a long way towards recovering the share price .

[city1911] 21/8/2023 06:57

https://news.sky.com/story/direct-line-approaches-aviva-executive-winslow-about-ceo-vacancy-12942791

[yf23_1] 18/8/2023 15:52

Well I don't think they are going to get many takers for their car insurance judging by their requotes.
Its ok to go for quality but not if you lose all your customers because your prices are too high.

[jrphoenixw2] 16/8/2023 19:06

Over on Yahoo Finance, the Stock Summary page has daily volume 7.03mm vs 30 day average 4.85mm. Just wanted to note that here before this daily data gets overwritten...

[laurence llewelyn binliner] 16/8/2023 14:04

#wba1, while we are at it, IF the dividend is reinstated next month even if it is a nominal 1, we can expect the share to be bought into and the recovery journey to begin in earnest, any sniff of a special to make up for the missing FY would be gratefully received but a stronger balance sheet is probably more important near term..?

Nice to get a bit of a gravity pull from other insurers today as their progress is evidenced and the sooner we get back to 2 dividends per year the better then 230p will be behind us.. :o)

[wba1] 16/8/2023 10:02

Thanks Boystown. I do think that is a fair 2025 target. I do have real issues with the current market cap given that at least half of it is covered by the value of the parts of the business other than core retail underwriting (commercial, rescue, workshops etc).

[boystown] 16/8/2023 09:58

Many thanks wba1 - the advice you give on insurers to amateurs like me is tremendously helpful, genuinely.

Do you still think c.230p is a more reasonable longer-term value? Obviously, we'll know more on 7th Sept.

[wba1] 16/8/2023 09:43

Boystown; it is a bit misleading to compare DLG and ADM. Direct Line are a true insurer. Admiral are an insurer/broker hybrid, much nearer to the MGA (managing general agent) model where an underwriter uses the capital from others (Munich Re in Admiral's case if I recall).
The read across this morning seems to be from what are very decent GI results within the Aviva half year numbers. They suggest the UK rating environment has turned the corner and other should follow suit subject to there not being any more nasties lurking in prior years or due to expanding via dodgy business (like Sabre). Such an outlook makes DLG undervalued although I still expect full recovery to take until 2025. This outlook is also supported by the underwriting numbers from Admiral (even whilst the broader comparison is less appropriate) and the noises from elsewhere (such as in the Allianz Group numbers from last week which whilst not splitting out UK GI did make reassuring comments about no material negative contributions from anywhere, including the UK).

[boystown] 16/8/2023 09:22

Why the rise - Admiral - Aviva?

Note - Just had a quick look on Morningstar:

ADM's PTBV 8.76
DLG's PTBV 1.35

Figures prob' not wholly accurate - but still!

[jubberjim] 13/8/2023 15:43

Awaiting admiral results

Will hopefully gives a nudge up

Lack of dividend or any news thereof will continue to overhang this share

Be prepared

[yf23_1] 12/8/2023 13:14

DLG quote 420, phoned, they dropped it to 359, went with Aviva for 253 !
Ridiculous 50% increase from DLG.
I guess they're relying on lazy people to renew.

[tuftymatt] 10/8/2023 12:41

If you buy it from DL we may get the divi back this year 😂