Direct Line Insurance Share Discussion Threads

[fizzypop] 10/9/2019 11:59

Hi Woody, welcome back. Lots going on with GFRD, GVC and GAN this week.
Bought back in to HGM pre Ex-divi on 12 Sep altho divi only 2% but CG primary focus.

[woodhawk] 10/9/2019 09:14

I'm not surprised - I find iWEB always on time with payment of dividends - IG Index on the other hand are always late in my experience.

[micos] 10/9/2019 08:58

Received with I-web

[rik shaw] 10/9/2019 08:51

Yes received with HL

[woodhawk] 10/9/2019 08:36

Have other holders received their DLG dividend payments yet? As usual, one of my platforms, IG Index have another in a long line of excuses for routine late payment of dividends.

[essentialinvestor] 05/9/2019 11:50

arja, any downside targets? Thanks.

[arja] 05/9/2019 09:03

awful looking chart .

[essentialinvestor] 04/9/2019 13:14

Let's see if the Chair or non execs buy a few then.

Silence is golden atm ...

[essentialinvestor] 03/9/2019 21:19

Chairman of the ABI on a no deal exit:

...a no-deal exit would require insurance companies to raise additional capital which would reduce competitiveness and lead to lower returns for investors.

[fllegend] 03/9/2019 20:53

The Berenberg analyst note that downgraded the target price by about 8p or so to 331 or something again validated my long held view that analysts simply do not understand personal lines motor/home insurance. The research note said that one of the key risks is that the management and Board are now accepting they are falling behind on price comparison websites, and there is a risk of IT transformation projects going awry. This would be an accurate assessment 4 or 5 years ago, but the latest H1 results have stated that the company have launched a new brand on price comparison called Darwin, which utilises Big Data and machine learning to target consumers, and that the major IT upgrade project costing several hundred million is being rolled out in 2019/2020. The upsides to this when, and I say when deliberately, the company announces a big dividend and strong results, will be massive.

[essentialinvestor] 03/9/2019 19:49

Demoted wef 23 September.

[essentialinvestor] 03/9/2019 18:52

* over the year ...that should have read.

[scrwal] 03/9/2019 18:22

There is a chance of a demotion to the FTSE 250 so there will be selling from the 100 trackers but buying from the 250 ones.
This may be why the BOD aren't buying or maybe they don't have spare funds available.

[essentialinvestor] 03/9/2019 12:26

BOD not falling over themselves to buy atm.

Over the years large director buying has often corresponded with
decent buying opportunities.

[risa5] 03/9/2019 00:16

DLG Seems very undervalued but with uncertainty about Brexit and volatility there could be more market corrections around the corner and financial stocks such as banks and insurance take more of the brunt as they have done so far.

[meek] 02/9/2019 08:33

Started building a position here, I'm thinking we're close to the bottom now.

[yf23_1] 01/9/2019 19:22

Just for info, I've renewed my DLG car policy and added breakdown recovery (£65).
I left RAC because they increased my cover to over £100 from £65 last year and quoted me over £100 this year even though I had changed to a small newer car from an old US import sports car.
Now it appears that new customers are given a 40% discount and its nowt to do with the car.
So if you're a new breakdown customer be prepared for a £40 hit the next year.

[joshuam] 01/9/2019 05:56

Getting very tempting at these prices, growth and dividend

[fllegend] 22/8/2019 21:07

City analysts and investors have a pretty poor understanding of how insurance businesses work. The share price rises whenever average motor insurance price rises is a perfect example of this. It doesn't take a genius to see premium prices could rise 5% but if claim costs rise 10% the bottom line profitability is gonna be hit.
The real number to look for is the COR or Combined Operating Ratio, which is the ratio of all the costs (claims, expenses, commission etc) against gross written premiums. On that measure DLG compares pretty favourably with the cohort, having never exceeded 100% in the recent past.
What's more, the latest H1 2019 results showed that the company is accumulating capital to prepare for Brexit, and is now at the very top end of what the regulators recommend for the Solvency Capital Requirement. In essence the company has a massive cash pile, is still growing its own brand policies, and have some very well established brands.

[essentialinvestor] 22/8/2019 17:35

Underwriting should be able to mitigate that at annual renewal.

However, yes it looks to be yields weighing on the sector.

[joan of arc] 22/8/2019 17:16

Good point riverman. But the bond prices should be rising and hence they could make capital gains on their historical holdings. Future income might be the issue.

[essentialinvestor] 22/8/2019 16:03

On annual renewal polices like car insurance it really should not make
much of a difference. What is happening looks mainly sentiment driven.
Their sector is viciously competitive atm, however no real change in that.

[riverman77] 22/8/2019 15:14

Yes you're right, falling interest rates/yields is the main factor behind the sell off. Insurers rely on bond markets to generate investment returns.

[riverman77] 22/8/2019 15:08

I also use direct line as it us cheaper than anything I could find on the comparison sites. As I say, I think this is a big competitive advantage as the comparison sites takes a huge commission. As far as I am aware, only DLG and Aviva have the brand recognition to sell direct.

[essentialinvestor] 22/8/2019 15:08

This is negative yield related imv, investment returns being compressed.