Direct Line Insurance Share Discussion Threads

[boonkoh] 23/8/2024 07:43

On the surface, good news I guess that solvency ratio has increased from 188% to c200%?On the bad news, should they not have an accurate read of the Solvency II ratio as of June 2024? Instead of estimated, based on a "partial" Solvency model? Now is almost two months later... With results due in just weeks...Is this why the share price has dipped so far this morning?

[fenners66] 23/8/2024 07:30

And still they are finding mistakes !

Is that an accounting mistake or a actuarial mistake.

IF the latter are we back to the point raised by Wba that there is no actuary on the board?

[laurence llewelyn binliner] 23/8/2024 06:40

4th September to find out what our dividend is from H1 results..

The FY2023 miscalculation is behind us, but c200% at H1 could impact the payout..?

#WBA1, what is your view on todays update..? we seem to be finding a few skeletons in the cupboard but hopefully the last to be uncovered under our new leadership..

[jubberjim] 23/8/2024 06:23

Re this latest rns

The good news just keeps on coming.

How many more nasties are awaiting in the run up to results .The shares aren't under enough pressure

Sometimes everything changes but actuary (sic) remains the same.

But this time round forewarned is forearmed


Good luck everyone

[leopoldalcox] 19/8/2024 11:00

Autotrader used car index continues to decline.Average asking price around 16.3k. Down from a peak of around 18k.

[roguetraderuk] 15/8/2024 17:54

i got really overweight this one on the drop just recently but ive wound back most of it today. its actually outperformed the general mkt by regaining all the lost ground since the mini crash but we approached some resistance and it just seemed to run out of steam. there was a note not long ago about dlg risking losing too much volume with their new more conservative strategy so it also wasnt lost on me that adm results were stellar in those depts. however the mkt isnt set up for superb results from dlg so the shares should pop if they come in without issues. even if they miss some targets id be prepared to back them again at lower levels as long as we keep heading in the right direction. if it takes 6-12 months longer so be it, be at the moment that the way things are heading so as long as the disappointements are mini but the trend remains i think you can back this one esp on any weakness.

[carpingtris] 15/8/2024 17:16

Wonder if the share price will be walked up towards 4th Sept? Tempted to add some to bring average down.. decisions decisions..

Wonder how much PCW's are having an impact.. lot of unknowns at the moment.

Less than a month to find out.

[jubberjim] 15/8/2024 12:22

Was tempted to get in this morning on the back of those barnstorming results from admiral but this was tempered by the fact that Direct Line declined to quote me for the insurance for my holiday home having held the policy with them since 2011

I think they will be losing customers hand over fist and that is where admiral will have gained the customers over the last year.

I could be wrong but have not bothered asking direct line for a quote on car or house

Currently with Aviva and very happy

That news today did nothing for DLG

Alienating your customers is not the way to do business

[jrphoenixw2] 15/8/2024 09:46

8.51 this am. Telegraph:
'Admiral Group jumped as much as 11.8pc to the top of the FTSE 100 after the motor and home insurer posted a forecast-beating 32pc rise in pre-tax profit for the first half of the year, and said it would pay a special dividend.

'9:28AM
Admiral attracts more customers with lower insurance premiums
Admiral shares jumped as it reported soaring profits for the first half of the year after it attracted more customers with lower premiums.
The London-listed insurer saw profits rise to £309.8m in the six months to June, up 32pc on the same period last year, while revenue was up 43pc at £3.2bn.
The increases were mainly driven by a 12pc jump in customer numbers, to more than 10.5m.
Through 2022 and 2023, Admiral hiked insurance premiums in response to “elevated claims inflation”.
Then, at the start of 2024, it decreased its premiums, “leading to an improved competitive position and significant growth in UK motor customer numbers”.
The group hailed a “record 5.5m vehicles on cover in the UK and nearly half a million more customers across other product lines in the UK”.
Admiral shares jumped as much as 11.8pc in early trading.

[boonkoh] 15/8/2024 08:59

The loss ratio improvements at both Aviva and Admiral... Oh my.... Such stellar positive moves. If applied to DLG as well... Massive profitability boost.

[boonkoh] 15/8/2024 08:25

Aviva and Admiral good news on insurance... Good and bad for DLG.On the one hand, their policy growth has to come from somewhere. And that may be DLG churn..On the other hand, they've increased their premiums, so allowing DLG to do so too, and therefore we should see much better profitability metrics in the next set of results. Especially coupled with good news on the cost inflation side.

[jrphoenixw2] 14/8/2024 20:27

This is for today 14/8:
Londonstockexchange has volume listed at 2.4million

Yahoo also shows 2.4million (note: these #s often do not tie) but they also note the average volume is 3.1million.


Yesterday was notable for being +2.9%/day, tody +3.3%. I don't see the volume today is significantly large. Maybe in quieter summer markets there is a buyer building a position? I have seen this week talk of how the UK market has been internationally flagged as a new tier-1 destination for funds. We'll see....

[my retirement fund] 13/8/2024 09:53

Monumental volume yesterday

[jezza123] 03/8/2024 16:43

another example of a bunch of idiots turning down a takeover and this will slide back down the toilet.

[my retirement fund] 29/7/2024 08:28

Been topping up here.

[wba1] 12/7/2024 13:47

The one thing which still niggles at me and prevents me being wholly positive is the failure of Winslow to bring in an industry leading actuary to his top team. He had the chance with the CFO appointment and brought in yet another accountant. He had the chance with the senior NED appointment and was rather dodgy in referencing Carol Hagh's background in actuarial matters - except that she is not an actuary, she has just worked with them. I cannot think of another significant (or even insignificant) insurers without an actuary in the top team. In light of the move to price comparison sites I see it as even more important that there is an actuarial voice at the top. I still harbour suspicions that part of the reason for the previous debacle was the lack of someone to tell the truth about pricing and reserving with sufficient authority to make the CEO and board listen.

I hope Winslow (who is essentially a salesman by training) does something about this sooner rather than later.

[garycook] 12/7/2024 04:09

UBS raises Direct Line price target to 248 (240) pence - 'buy'

[alex1621] 11/7/2024 14:55

What matters is results, when all is said and done.

[ashbox] 11/7/2024 14:33

Looks like the capital markets attendees have had a re-think today!!

[boonkoh] 10/7/2024 14:41

I've worked extensively with PCWs (not in insurance, but other verticals) as a brand. And I agree that PCWs are not always good news.The best way I think to use them is to get tactical, incremental new acquisition volumes when you need it. When you need to get more of a product or service sold, for example. In insurance, the example might be to diversify their risk to specific demographics, car models, geographies...As you say, PCW customers are less sticky, and you have to pay a high Customer Acquisition Cost to the PCW too. Just look at how much profit the likes of MONY makes.

[wba1] 10/7/2024 12:46

The issue with price comparison sites is that they commoditise the product and ensure any weakness in the rating model gets picked off. This does not happen to the same extent with direct writing as some customers will do limited shopping around and also with the few remaining traditional brokers where they operate with a much smaller panel than the price comparison sites. So whether going on the sites is a good idea comes down to 2 things; how good are the DLG rating models and how much fixed cost can be offset by the additional volume. I assume Winslow must have reassured himself that the holes in pricing which were exposed under the previous management have been corrected. I also assume they will adjust their pricing on the sites to reflect the much lower retention rates.
Interesting to see the fairly sharp price recovery this morning. I assume this means that the call went well.