We could not find any results for:
Make sure your spelling is correct or try broadening your search.
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 | |
---|---|---|---|---|---|---|---|---|---|---|
-5.10 | -2.70% | 183.60 | 183.30 | 184.00 | 190.00 | 183.30 | 189.70 | 343,540 | 09:59:40 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Fire, Marine, Casualty Ins | 2.86B | 222.9M | 0.1700 | 10.91 | 2.43B |
TIDMDLG
RNS Number : 7158G
Direct Line Insurance Group PLC
19 March 2020
19 March 2020
For immediate release
DIRECT LINE INSURANCE GROUP PLC
UPDATE ON SHARE BUYBACK PROGRAMME
Direct Line Insurance Group plc (" DLG " or the " Group ") provides an update on its solvency position and announces that it is suspending its share buyback programme as a result of the volatile conditions arising from the Covid-19 (coronavirus) pandemic.
Tim Harris, Chief Financial Officer of Direct Line Group, commented:
"Given the uncertainty as a result of Covid-19 we've taken the prudent decision to pause our share buybacks until the situation becomes clearer. The Direct Line Group capital position remains strong, and solvency has moved as expected in line with our sensitivity analysis(1) following recent market movements. We hope to be able to resume the share buybacks in due course, but it's right we seek to preserve the Group's strong balance sheet during this period of heightened uncertainty."
Solvency
The Group estimates a strong solvency capital ratio of 163% on 18 March 2020 after allowing for the mark to market effect of the recent deterioration in the financial markets on the Group's investment portfolio. It is also after the buybacks completed to date and the proposed payment of the final regular dividend of 14.4p per share.
Travel and Motor Claims
The Group anticipates claims trends across its diversified business lines to differ during the period affected by Covid-19. In particular:
- Within Motor the Group anticipates lower Motor claims frequency in the short term as the UK government increasingly advises against non-essential travel.
- Gross reported Travel claims related to Covid-19 had increased to GBP5 million on 15 March from around GBP1 million on 3 March. An increase in claims following further travel restrictions imposed by the Foreign & Commonwealth Office (FCO) is expected, although it is too early to estimate the potential impact. The Group has implemented measures to help mitigate this, including pausing new travel insurance sales and restricting cover for new travel bookings. The Group has reinsurance cover totalling GBP18.5 million for Travel claims.(2)
Buyback
The GBP150 million buyback programme was launched alongside the Group's full year results and was designed to return surplus capital to shareholders and move the Group's solvency capital coverage ratio towards the middle of its solvency risk appetite range. To date approximately GBP29 million of shares have been purchased under the buyback programme.
The Company will be keeping the position under review to assess opportunities to undertake further share repurchase exercises in future, subject to prevailing market conditions.
Notes: 1. The solvency sensitivity analysis as outlined in the 2019 Annual Report and Accounts, page 37. 2. DLG has travel insurance protection to mitigate the cost of an event over a 28 day period from GBP1m up to a limit of GBP10m, with one full reinstatement.
Current Mandate with Morgan Stanley
DLG has decided to terminate its current share repurchase mandate relating to buying back DLG's ordinary shares for a maximum consideration of up to GBP150 million that was announced on 4 March 2020 and commenced on 5 March 2020 (the " Current Mandate "). To date the company has bought back approximately GBP29 million of shares in the market under the Current Mandate.
The termination of the Current Mandate will take effect at the close of business today and no further share purchases will be carried out under the Current Mandate on the London Stock Exchange or any other exchange after then. The programme was previously expected to end by 31 July 2020.
The Group intends to update further with its first quarter trading update scheduled for 6 May 2020.
This announcement contains inside information for the purposes of article 7 of Regulation 596/2014 (" MAR "). The person responsible for arranging the release of this announcement on behalf of DLG is Tim Harris, Chief Financial Officer.
Contact:
Paul Smith
Director of Investor Relations
Telephone: +44 (0)7795 811 263
LEI: 213800FF2R23ALJQOP04
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
POSSFSEFAESSEID
(END) Dow Jones Newswires
March 19, 2020 03:00 ET (07:00 GMT)
1 Year Direct Line Insurance Chart |
1 Month Direct Line Insurance Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions