Direct Line Insurance Share Discussion Threads

[laurence llewelyn binliner] 23/11/2024 10:02

Could Ageas come back with another bid..?, their share price has gone +25% since their offer in February, DLG is flat at c160 pence..

100 pence in cash for each Direct Line share +
One newly issued Ageas share for every 25.24047 Direct Line shares.
Based on a GBP/EUR of 1.169 and the closing price of Ageas and Direct Line shares on 27 February 2024, being the last date prior to the date of this announcement, the possible offer has an implied value of 233 pence per DLG share representing a premium of 42.8% to 163.35 pence..

[garycook] 22/11/2024 11:33

240p.Will do.

[pander45] 22/11/2024 08:08

Takeover coming here.

[pander45] 19/11/2024 17:44

Correct assessment imho.

[city1911] 19/11/2024 16:05

Not a chance. Will either recover next year or get bought out well before it sinks to under a pound.

[cwa1] 18/11/2024 07:58

*BARCLAYS CUTS DIRECT LINE PRICE TARGET TO 185 (219) PENCE - 'EQUAL WEIGHT'

[pander45] 16/11/2024 16:41

Should have taken offer plain and simple.

[jubberjim] 15/11/2024 12:51

I have had misgivings about DLG for some time.

This morning seen note dated 13/11whereby Jeffries had downgraded DLG from buy to hold.
Not so much in itself a reason to worry but it does raise the question was that behind the sudden price drop on Tuesday last 12/11 whereby it opened at 147.5/148.5
But it has intensified my doubts .

Would be interested in anyone's thoughts .

Still holding small amount but more in hope than expectation.

Take care out there.

[cwa1] 15/11/2024 07:41

*GOLDMAN CUTS DIRECT LINE PRICE TARGET TO 220 (244) PENCE - 'BUY'

[wba1] 14/11/2024 18:09

I am still buying. Now have 35k at a 171 average. The binary future of recovery or takeover remains. Jefferies seem to confuse the trend for private motor with the opportunity for DLG. I agree that rates have peaked. This will still produce a further improvement in reported profit for 2025 (in March 2026 results) but the opportunity for growth lies as much outside private motor (and even retail business) as within the traditional motor sector. I hope DLG have the sense to target growth on commercial lines but, if not, I look forward to the bid battle.

[jubberjim] 14/11/2024 06:39

The thought of a takeover is keeping me invested but the numbers put out the other day and the experience of the 'New Marketing Ploy' in the downright refusal to even tender a quote for home insurance renewal speaks volumes.

Hope Av.va fulfils its promise today or I can see us following the path taken by Abdn in the last few months and revisiting the 130's again.

At the moment with the loss of customers in the motoring side this does not fill me with confidence.

House (2) and car currently insured with Aviva .Don't know if I'll ever comeback.

Good luck

[cwa1] 13/11/2024 21:25

No personal comments, please. Feel free to , constructively, criticize the company but NOT the people on the thread.

Thanks

[jezza123] 12/11/2024 18:04

I mean I did say..... ok, I'll get my coat.

[pander45] 12/11/2024 13:30

Worst share of term all. Dire. Clueless board.

[thebutler] 12/11/2024 12:57

The cost of living thingy is really eating into the insurance sector where more and more people are shopping around with cut throat competition. It seems to me Direct Line is simply banking on customer loyalty (or is that laziness?) with low volume high margins. HNV had the same high margin approach but got slaughtered by play.com and amazon. You can't get away with high prices anymore.

[roguetraderuk] 12/11/2024 11:50

its a calculated risk they are taking on the assumption that their brand will carry them through securing enough business at oremium prices to offset customers lost to cheaper competitors. i think its another reflection of the way folks are dealing with higher prices overall. if you are going for third party only, your interest isnt about what adds on you are getting but just really the price. once you know you are covering all the legally required basics, anything else can be reasoned away. its a bit diff when it comes to fully comp, where you may want certain things and be willing to pay for them. you want to see a breakdown of the policies, where more have been lost. i suspect its in that area of third party. with aviva reporting this week, we shall see if other premium brands are being affected.

[thebutler] 12/11/2024 10:53

So Jefferies' view that DLG was a buy up to 235p but now just a hold at 165p shows that their original buy note was total rubbish.

Not that I think Direct Line is still a buy. Their quotes are still way more expensive than their rivals, I've no idea what these guys are playing at but they seem to be digging themselves a huge hole.

[triktrak] 12/11/2024 10:21

On Tuesday, Direct Line (LON:DLGD) Group (DLG:LN) (OTC: DIISF) experienced a shift in stock rating as Jefferies analyst changed their stance from Buy to Hold. The price target was adjusted to £1.65 from the previous £2.35. The revision reflects concerns about the insurance industry's move towards deflation and its implications for the company's pricing strategy and policy count.

Jefferies' assessment suggests that the optimal moment for insurers to increase prices in anticipation of inflation has passed. This change in the market environment could hinder Direct Line's ability to expand its margins without affecting the number of policies it holds.

The firm anticipates that Direct Line's new management will aim to meet expected target margins, which in turn limits the potential for significant stock appreciation.

The analyst at Jefferies pointed out that while Direct Line is likely to maintain a cautious approach under its new leadership, the current industry trends pose a challenge.

The deflationary shift in the market is expected to make it more difficult for the company to raise prices without potentially reducing its policy count. This risk has contributed to the decision to downgrade the stock's rating.

The price target reduction to £1.65 from £2.35 by Jefferies reflects a more conservative outlook for Direct Line's financial performance. With the insurance sector experiencing a turn towards deflation, the firm's upside potential is seen as constrained.

The analyst's comments underscore the belief that Direct Line's new management will prioritize achieving target margins, which aligns with market expectations.

In conclusion, Jefferies has revised its view on Direct Line Group, signaling to investors that the company's opportunities for growth may be limited in the current economic climate.

The downgrade to Hold indicates a neutral position on the stock's future performance, taking into account the potential challenges posed by the industry's deflationary trend and the company's strategic response.

hxxps://uk.investing.com/news/analyst-ratings/jefferies-downgrades-direct-line-stock-on-sluggish-growth-potential-93CH-3784496

[prokartace] 12/11/2024 10:04

Well jefferies must be bearish on the UK stock market as they have cut dozens of share price targets this morning

[cwa1] 12/11/2024 08:41

*JEFFERIES CUTS DIRECT LINE TO 'HOLD' (BUY) - PRICE TARGET 165 (235) PENCE

[carpingtris] 12/11/2024 08:09

What's going on here then?