Direct Line Insurance Share Discussion Threads

[carpingtris] 09/11/2024 08:30

Hoping if there are green shoots then maybe anyone sitting on the side lines might strike whilst still cheap... what say 250p and put us out of our misery.

Also I've not needed a PCW quote for a while though hone insurance will be a reason to visit next month but are Direct Line now present on these platforms?

[tuftymatt] 09/11/2024 08:13

Yeah this one falls into the pain trade category that's for sure!!
Why I didn't jump on the takeover news when I had the chance frustrates me still but hey that's the game we all play when it comes to individual stock picking.

Hopefully DLG on Monday gives us something positive to "remember"

Good luck all 👍🏻

[laurence llewelyn binliner] 09/11/2024 07:33

#Nellynell, we certainly need to see more evidence that our CSR has been rebuilt, margins are maintained translating to profits and then dividends at FY..

Hard to watch the share price drop away like it has from 200 pence down to 165 and a long way back to 300, but some green shoots evidenced as our new leadership roll out their strategy will be most welcome..

[nellynell] 08/11/2024 19:08

Direct Line Insurance Group PLC (LSE:DLG)’s recovery will be the focus as the insurer updates on its third-quarter trading next Monday, November 11.

Having reported a swing to pre-tax profit at the half-year stage, Direct Line’s update will come against a backdrop of “renewed optimism” it can get back on track, Hargreaves Lansdown’s Matt Britzman commented.

“With the group back in the land of profit, third-quarter trading next week needs to show a continued recovery in net insurance margins, especially from the motor division,” he said.

Net insurance margins sat at 1.8% over the first half, against -8.8% a year earlier, with the figure in Direct Line’s home, commercial direct and rescue wing reaching 11.6%.

Motor insurance margins remained negative at -3.3% in the meantime though, as the wing continued to feel the impact of business written in the first half of 2023.

That said, new motor contracts were being written at margins above 10%, Direct Line reported in September, leaving expectations for profitable growth over the second half.

“Customer numbers will also be in focus,” Britzman said, after Direct Line shed 488,000 own-brand customers in the first half as “prices saw mammoth hikes”.

[boystown] 08/11/2024 15:52

Are we due a trading update on Monday?

[jubberjim] 07/11/2024 13:05

Ok Thankyou

Will relax and enjoy the weekend now

Thanks again

[city1911] 07/11/2024 07:41

The trading update is on the 11th

[jubberjim] 07/11/2024 07:33

Was looking forward to trading update today but in light of the updates elsewhere little bit relieved that nothing has been forthcoming.

Another difficult nerve shredding day ahead ?

[cwa1] 05/11/2024 08:37

* Direct Line Insurance DLG: JP Morgan cuts target price to 200p from 210p*

[huckers] 04/11/2024 14:10

Thanks for your thoughts LLB.

[laurence llewelyn binliner] 04/11/2024 14:02

#Huckers, we have a great deal of catching up to do on dividends lost here, from a 22.7 pence to zero, and then a 6 pence this year..

We are at least 40 pence light thanks to the cuts, once the safety solvency cover is rebuilt I am hoping the payouts take a big step towards where they were, any improvements will be welcome but the bigger the better.. :o)

[carpingtris] 04/11/2024 13:19

Thanks wba1 for clarifying - I did think it was an mistyping error..

[huckers] 04/11/2024 12:13

wba1. Any thoughts on where the dividend might go in 2025 and 26?

[carpingtris] 04/11/2024 11:37

'It is exceptionally difficult to see any reason why anyone would pay £1.5 billion for Esure if the could pick up DLG for less than half that figure.'

I assume you don't mean that this could be flogged off for £750m?

[wba1] 04/11/2024 11:32

This is a slightly silly price so I have picked up a few more in the 160s and now average about 178. At the end of last week Insurance Times reported that Bain Capital are looking to sell Esure for £1.5 billion. DLG now has a market cap just over £2.1 billion. Esure has 2.1 million policies compared to DLG's 9 million plus. Esure has under £1 billion of GWP as against over £3 billion for DLG. DLG retention is much higher than Esures and Esure underwriting reputation in the industry is every bit as bad as DLG.
If the report in Insurance Times is anywhere near the mark (and they have a good track record on industry leaks)it is exceptionally difficult to see any reason why anyone would pay £1.5 billion for Esure if the could pick up DLG for less than half that figure. The only reason may be regulatory in that Esure would not be big enough to trigger competition issues. I remain a holder and may continue to add.

[pander45] 04/11/2024 09:12

What? Not a lot? Money for nothing? Dire straits.

[laurence llewelyn binliner] 04/11/2024 08:19

Our next TU - 11.11.2024

See how we are getting along, compared to the share price which is not..

[diku] 04/11/2024 08:10

Post 1595...no don't think management would wished they had accepted the offer...they just keep getting paid for whatever they are doing...

[jubberjim] 04/11/2024 07:43

Have I got this right

We have a trading update this Thursday ?

But in light of the underperformance of the insurers in last few weeks not expecting much of anything.

The reaction to the Budget says we are going to struggle for a few more months.

Less said about the Presidential elections the better.

Confused ?

More like befuddled

Have a good week

[pander45] 01/11/2024 14:37

Somebody bid for this croc and put it and its shareholders out of their misery.

[pander45] 31/10/2024 19:01

Agreed. Absolute fools. No brainer. Arrogance and incompetence are strongly linked.

[jugears] 31/10/2024 15:24

I bet the management wished they had accepted that take over offer now!, but may be worth a punt today.

[wba1] 22/10/2024 12:33

With ncd protection the real question is what value it offers. In financial terms the premium charged for it hugely exceeds to cost to the insurer so it only offers value in terms of a back stop if you need it.
The Sabre update is interesting and undoubtedly a large part of the reason for today's fall. I find it difficult to read across from Sabre to the rest of the industry. Sabre is a niche insurer whose premium rating was due, historically, to an offering focused on specialist private motor risks. It then decided to expand into taxi, motorcycle and even panels such as Saga. This was bound to hit their results and, whilst 2024 will be much improved on 2023, I am not in the least surprised that their changes in account (including much core new business which always performs worse than renewals) is causing them to be cautious. I suspect that noises about continuing inflation are just them managing the consequences of the wider strategy. DLG do have two advantages over Sabre (apart from scale, in house repair control and coming off a low performance base). Firstly they have been losing customers. This means their % of the account derived from renewals will be holding up better than Sabre. And renewals always perform better than new business. Secondly, DLG continues to have some benefit from other lines - a broader spread of risk.
My view is that DLG, absent further news about past mismanagement, is better placed to improve performance than Sabre - although Sabre will declare a lower COR because they aim for a COR in the 70s whilst DLG, as a volume player, aim for a COR in the 90s. I think DLG will get their COR in the 90s whilst I will be surprised if Sabre meet their target.