Direct Line Insurance Share Discussion Threads

[jrphoenixw2] 29/10/2018 09:28

'Questor: Direct Line’s shares may not be motoring but the 6pc yield makes them a hold'

The limited-paywall article concludes with:
'Direct Line shareholders can take comfort that the group’s 169pc solvency capital ratio – up from 165pc in the previous year – remains comfortably within the company’s 140pc-180pc declared range and means the aim to grow the dividend in line with the business looks safe.
Investors never look in the rear-view mirror, even when it comes to car insurers. Last year’s 15p-per-share special dividend is a distant memory but more of the same is not impossible. Even without top-ups, Direct Line stock yields an attractive 6.4pc.
While it is not clear what the catalysts are that will get the shares motoring again, the promised payout makes them well worth holding.'

[fllegend] 27/10/2018 14:49

If IPT rise leads to a increase in premiums it should lead to an increase in policy numbers for DLG, as their policies are cheaper than many other insurers for new customers and a opportunity to grow the book. Most analysts understand very little about motor insurance and this stock is very undervalued at the moment, and same goes for Aviva too.

[eeza] 27/10/2018 13:33

Most taxation punishes or disincentives, but is usually presented as being beneficial.

[essentialinvestor] 27/10/2018 13:18

Regressive, as it penalises low earners disproportionately on compulsory
insurance such as motor. It's not as if public transport is a cheap alternative.

[eeza] 27/10/2018 13:13

Then they'll invent another tax starting at 3% - rinse & repeat.

[lord gnome] 27/10/2018 12:01

Almost a certainty, jr. The tax will increase until it is in line with vat rates.

[jrphoenixw2] 27/10/2018 11:59

The UK Budget on 29-Oct might also be a factor for volatility with insurers. From an article [DT] today floating what it might include: 'There are mounting concerns that he could hike insurance premium tax to help fund increases in public spending.'

[sundial1] 26/10/2018 19:37

directors wont be buying. wait till after winter .if we have a bad one timber!!!

[essentialinvestor] 26/10/2018 11:53

Directors here have been astute buyers, making well timed opportunistic purchases
over the years, silence is golden on that front atm, so I'm staying clear.
May be too cautious a view.

[lord gnome] 25/10/2018 09:01

Looks like the read-across from Hastings Q3 RNS is taking us back down again this morning.

[sufc555] 24/10/2018 16:04

about 100m per 1% change in ogden rate - current rate -0.75% new rate expected to be between 0 and 1%

[scrwal] 24/10/2018 15:11

Any ideas of what the DLG cost savings would be as the 7p interim was £96.2m in cash so part of the savings after tax may be passed on as part of the year end special div.

[sufc555] 24/10/2018 10:29

civil liability bill (whiplash reform/discount rate revision - saving 500m per annum ) passed - just - its 3rd reading last night - I watched it - discount rate will change soon after royal assent is granted - likely end of nov. whiplash reform April 2020 - there will be 'ping pong' between the two houses in the meantime.

[lord gnome] 24/10/2018 10:10

Looking perky this morning. Broker upgrade perhaps?

[renew2] 13/10/2018 11:40

Thanks suf a nice summary,

[sufc555] 13/10/2018 08:43

No us policies only UK
Divi tbc in end of year report in March 2019
Vacancy for ceo to leave summer 2019 - speculation it could be Wilson who was removed from Aviva last week would be a good choice has helped share price over last week
Discount rate and whiplash reform due to receive royal assent in dec 2018
Whiplash reform will save dlg £500m per annum due to be implemented April 2020
Discount rate change sooner likely feb 2019 one off saving 200m - could result in special divi or increase in year end divi
Adverse weather in 2018 to cost 100m
My profit target 600m for 2018 or 800m if results are changed to reflect discount change

[renew2] 12/10/2018 22:53

Anybody know if DLG writes any policies in USA?

[jrphoenixw2] 12/10/2018 15:53

The Fin-Cal on their Investors page for 2018 is as follows:

Upcoming events
06.11.18 - Trading update for the third quarter of 2018

Past events
27.02.18 2017 Preliminary Results announcement
05.04.18 “Ex-dividend” date for 2017 final dividend
06.04.18 Record date for 2017 final dividend
25.04.18 Final date for election under the Dividend Reinvestment Plan
02.05.18 Trading update for the first quarter of 2018
10.05.18 Annual General Meeting
17.05.18 Payment date for 2017 final dividend
01.08.18 Half Year Report 2018
09.08.18 “Ex-dividend” date for 2018 interim dividend
10.08.18 Record date for 2018 interim dividend
16.08.18 Final date for election under the Dividend Reinvestment Plan
07.09.18 Payment date for 2018 interim dividend

Is the div declaration you refer to Gary part of the 6-Nov event?

[mister md] 12/10/2018 14:06

totally agree GC ;)

[garycook] 12/10/2018 13:46

Quality company.But undervalued at present.Probably the Winter claims.But when the dividend is declared investors will be buying.

[mister md] 12/10/2018 13:40

impressed this hasnt dropped much more along with the major slump in markets this week

[mister md] 09/10/2018 08:18

interesting near 3% rise this morning ?