Share Name Share Symbol Market Type Share ISIN Share Description
Direct Line Insurance Group Plc LSE:DLG London Ordinary Share GB00BY9D0Y18 ORD 10 10/11P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -2.10 -0.64% 327.40 327.60 327.80 334.00 327.30 334.00 1,886,211 16:35:03
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonlife Insurance 3,202.6 509.7 29.5 11.1 4,502

Direct Line Insurance Share Discussion Threads

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Direct Line battles through pricing squeeze - HTTPS:// Insurers are suffering a price squeeze at the moment but Direct Line’s (DLG) cost savings and brand strength should allow it to hold its own, says Hargreaves Lansdown. The insurer reported operating profits of £601.7 million for 2018, 6.4% lower than the previous year as an increase in own-brand policies failed to offset several large white label agreements coming to an end – notably with Sainsbury’s and Nationwide Home. Analyst Nicholas Hyett said longer term the increased proportion of own brand sales is good news as ‘the lack of commission payments to partners mean own brand sales are potentially higher margin and direct access can also make them stickier customers’. ‘It’s not all plain sailing of course – the personal insurance industry is going through one of its periodic pricing squeezes…and Direct Line hasn’t escaped unscathed,’ said Hyett. ‘However, the strength of the group’s brands mean it seems to be holding its own for now, and cost savings elsewhere in the business have allowed Direct Line to hike marketing expenses this year. If marketing pounds are well spent that bodes well for the future.’ The shares edged 2.3p lower to 353.9p yesterday.
Seems fine to me, the div as is is generous [IMHO]. Better super-reinforce the roof now just in case of turbulence in the near-term. Those in for the long-term will see the capital released back into future divs, and meanwhile the balance sheet (and SP) should rise in parallel to reflect this added contingency. - One 'negative' comes to mind as a ps/thought... any other company that was considering taking over a company in DLG's sector will now find DLG a more expensive proposition to swallow...
Part of the reason for a slightly lower special dividend this year... Strong capital position with solvency capital ratio of 170% (after proposed dividends) reflecting prudence given current political and economic uncertainties. After both dividends the solvency capital ratio will be 170% as at 31 December 2018. [31/12/2017: 165%] The Board has taken into account the high level of political and economic uncertainty, including in relation to Brexit, and considers it appropriate for the time being to maintain a prudent solvency capital ratio towards the upper end of the solvency capital ratio risk appetite range of 140% to 180%. The Board will keep this position under review as it monitors developments in the political and economic environment. In normal circumstances, the Board expects the Group to operate around the middle of its solvency capital ratio risk appetite range. EDIT: @wolansm - jinx! ;o)
I was hoping for a little rise on these results. Should get a decent run up to Xdiv date all being well.
Total dividend down on last year by 6.1p.
Quite agree Gary, nice little earner!
Only expecting around a 26p Divi with the Special,but 29.3p is a bonus.Now yielding 8.2%.Great company for income.
Results out Snippet:- STRONG RESULTS AND DIVIDS DRIVEN BY A RESILIENT BUSINESS MODEL Paul Geddes, CEO of Direct Line Group, commented "I am pleased to announce a strong set of results driven by our resilient business model which performed well in a highly competitive market. We have added a million direct own brand policies since 2014 showing that our customers value our brands, propositions and service. "Together, our diversified product and channel portfolio and disciplined approach to underwriting have produced operating profits of GBP601.7 million, a combined operating ratio of 91.7% and a 21.5% return on tangible equity. As a result, the Board is able to announce a final dividend of 14.0p, an increase of 2.9% on last year, and a special dividend of 8.3p. "We enter a pivotal year of operational delivery in 2019. This includes starting the roll-out of the latest generation IT systems for personal lines, following the successful launch of our new systems for small businesses in 2018, which we believe will deliver benefits for customers, colleagues and shareholders over the coming years. This aims to provide the springboard from which to deliver a step change in both capability and efficiency to help to grow the contribution from current-year profitability. "This gives us the confidence to continue to target a combined operating ratio of 93% to 95% in 2019 and over the medium term. "It gives me great pleasure to be handing over to Penny James as our next Chief Executive Officer with effect from the AGM in May. Penny's expertise as our Chief Financial Officer and the breadth of experience she brings from previous roles will be invaluable as she leads the business. I've worked closely with Penny for over twelve months and have been impressed by her drive, energy and ambition for the Group. I am pleased to be leaving the Group in such experienced and capable hands."
Plus looking forward to a tasty ~30P divi in April :). Solid buy!
These are a golden buy, especially at the current ridiculously low share price These are worth over £4 any day, Prem results announcement on 5th March, I expect these to be at their intrinsic value by middle of next month :).
Good recovery after a biggish fall first thing. Broker downgrade?
lord gnome
HSBC today reaffirms its buy investment rating on Direct Line Insurance Group PLC (LON:DLG) and raised its price target to 424p (from 410p).
lord gnome
Does anyone know what has hit the share price today?
Marked underperformance re the Admiral share price Admiral taking market share.
This announcement obviously affects DLG's core markets... CMA tackles loyalty penalty charges - HTTPS:// The CMA has today announced a package of reforms to tackle the substantial loyalty penalty impacting millions of people. The Competition and Markets Authority (CMA) has investigated concerns raised by Citizens Advice in a 'super-complaint', that companies penalise existing customers by charging them higher prices than new customers. The CMA has looked at the 5 markets highlighted by the super-complaint - cash savings, mortgages, household insurance, mobile phone contracts and broadband - and found that there is a total loyalty penalty of around £4 billion a year in these markets. It also found that vulnerable people, including the elderly and those on a low income, may be more at risk of paying the loyalty penalty. The investigation has uncovered damaging practices by firms, which exploit unsuspecting customers. These include continual year on year stealth price rises; costly exit fees; time-consuming and difficult processes to cancel contracts or switch to new providers; and requiring customers to auto-renew or not giving sufficient warning their contract will be rolled over. Millions of people are affected - from around 1 million in the mortgage market to nearly 12 million in the insurance market. The loyalty penalty is also likely to arise in many other markets, where people's contracts are rolled over to a higher price. A number of recommendations are being made to regulators and government to help stop loyal consumers being ripped off. These include: · Cracking down on harmful business practices using enforcement and regulatory powers to clamp down on harmful practices that stop people getting better deals. The CMA has today opened a consumer law enforcement investigation in the anti-virus software sector. This is a first step and further action may be taken by the CMA and regulators against other companies. · Setting out clearly the principles businesses across all markets should follow, such as people being able to leave a contract as easily as they enter it. The CMA will also be looking at whether consumer law should also be reinforced. · Firms should be publicly held to account for charging existing customers much more; regulators should publish the size of the loyalty penalty in key markets and for each supplier on a yearly basis. · Targeted price caps to protect the people worst hit by the loyalty penalty, such as the vulnerable, where needed. The CMA has also made recommendations to the FCA and Ofcom in each of the 5 markets, where work is currently underway. These include: · Mobile: providers must stop charging pay-monthly customers the same rate once they've effectively paid off their handsets at the end of the minimum contract period. Ofcom should continue its work to challenge this practice and bring it to an end. More should also be done to make people aware of sim-only packages. · Insurance: there is evidence of firms continually raising prices in this market. The FCA must look closely at these pricing practices in its current market study and take action to prevent people being exploited by firms. This should include considering pricing interventions. Other recommendations have also been made in the mortgages, cash savings and broadband markets on ways that regulators can tackle the loyalty penalty and protect those being hit the hardest. The CMA considers urgent action is required. It will be taking forward these recommendations, along with government and regulators. If sufficient progress isn't made, it may take further action. Andrea Coscelli, Chief Executive of the Competition and Markets Authority said: Our work has uncovered a range of problems which leave people feeling ripped off, let down and frustrated. They shouldn't have to be constantly 'on guard', spending hours searching for or negotiating a good deal, to avoid being trapped into bad value contracts or falling victim to stealth price rises. Millions of loyal or vulnerable customers are being taken advantage of each year by firms - and end up paying much more than they should do. This must come to an end. That's why we have today recommended a robust package of reforms. There must be a step change to protect the people being hardest hit, including targeted price caps where necessary. Together the CMA, regulators and government must act more promptly and powerfully to hold firms to account, stop them exploiting their customers and restore people's trust in markets.
Sky are reporting that DLG may be interested in buying the general insurance arm of LGEN for c£400m.
Indeed - if the specials are factored in, then the return is north of 10%.
You need to consider that there is a cycle in the level of premiums that can be charged. In soft markets there is much price competition which ultimately produces thinner margins and indeed possibly losses. Then following such pressure premiums start to rise and it is this upturn in the cycle that profitability improves and to the advantage of investors who time the cycle well. Other factors come into play e.g. bad weather causing more accidents, changes in injury awards, release of claims reserves held, investment returns on premiums held, plus the particular underwiring skills and strategies of each insurer. Need to follow industry observers. At these share price levels DLG would appear to be attractive.
I always thought insurance companies are cash cows which pay out dividends. At such low share price, it looks very attractive to invest some money in. Of course , insurance is for the unexpected events, sometime you pay out, some time you do not. let us hope the worst is over and better times ahead with better strategy whcih I gusee the company management will have to think about, otherwise what do they get paid for?
looking a lot better here now ...
mister md
Ha! Often the case.
lord gnome
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