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 Shares Traded Last Trade
  -4.50 -1.75% 252.80 495,012 11:50:19
Bid Price Offer Price High Price Low Price Open Price
252.80 252.90 260.00 252.40 260.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonlife Insurance 3,247.70 446.00 24.50 10.3 3,394
Last Trade Time Trade Type Trade Size Trade Price Currency
11:50:19 AT 9,649 252.80 GBX

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Date Time Title Posts
24/6/202214:14Direct Line......2,344
05/12/201907:14Ideas Anyone?1
01/8/201801:53Direct Line (DLG) One to Watch on Wednesday -
09/11/201612:51*** Direct Line ***218
04/9/201408:56Why to BUY and HOLD Direct Line (DLG)-

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Direct Line Insurance Daily Update: Direct Line Insurance Group Plc is listed in the Nonlife Insurance sector of the London Stock Exchange with ticker DLG. The last closing price for Direct Line Insurance was 257.30p.
Direct Line Insurance Group Plc has a 4 week average price of 241.40p and a 12 week average price of 231.10p.
The 1 year high share price is 319.40p while the 1 year low share price is currently 231.10p.
There are currently 1,342,699,566 shares in issue and the average daily traded volume is 4,746,947 shares. The market capitalisation of Direct Line Insurance Group Plc is £3,405,086,099.38.
kenmitch: LINTONS As fenners66 posted, there have been many far more wasteful buybacks. One of the worst was after Whitbread sold their Costa business to CocaCola for about £4 BILLION. Nearly all that £4 billion was profit. Whitbread Management decided to “reward their shareholders” by spending nearly all of that £4 billion on share buybacks, mostly around £40. The share price never again reached that £40 level and is now at £27. That’s a very impressive waste of money compared with the current £100 million being thrown away by Direct line on their current buybacks. And btw instead of that so called “reward” Whitbread shareholders ended up with no share price gain at all and a big LOSS of their capital too. The theory behind buybacks sounds convincing but often the experience is disastrous for shareholders....except for those who take advantage of the willing buyer (e.g Whitbread) to sell ahead of the subsequent share price falls.
gary1966: adejuk, Bit off the mark with the buyback comment as yesterday was by far and away their biggest day so far with just over 1.4m shares and £3.5m spent. Let's see what tomorrow brings as it wouldn't surprise me if it is another big day today with the elevated volume. Just under £22m left of this tranche and so still a little firepower. If the price stays down at this level or falls further then I would like to see the second tranche brought forward into H1. Sadly there is only so much that a £100m budget can do to support the share price of a company worth £3bln+.
wba1: Pander45; No. A falling knife has a failed business model and financial difficulties. DLG results are simply showing the effect of the weakness in the insurance market cycle combined with the added problem of transition from pandemic conditions. DLG needs to expect a tough couple of years but has huge surplus prior year reserves to smooth profits and a business model which remains superior to most competitors. The challenge for DLG is where it goes in future. Does it just accept that it is a mature business in a boring sector, or does it have a plan for growth, either by line or geographic expansion? The market thinks the former and so (rightly) is establishing a new base line for valuation. But it will not fall below 200.
fenners66: I have to say having read the results this morning , I am not surprised at the market reaction. Given a day or more for the anal-ysts to dig into the numbers the reaction may change. But when the results start with a first sentence including "but we believe have not fully reflected claims inflation" and that is the best headline they can grab - the market reaction was pretty much nailed on. In force policies down 8.7% but gross premiums down only 2.4% looks like they were discarding lower quality business , "In Motor, market new business premiums increased by mid-single digits early in January" say 5% kinda fits that they mitigated loss of volume with premium increases. But vs their claims inflation being presumably worse than the premium raise this says the business went backwards, both in value and in volume. So they anticipated this and started a buyback ! But FFS its as if they knew the shares would go down (in this market) with that anticipated performance and bought the shares back at higher prices anyway ! Again a buyback is such a blunt instrument. Maybe if they spent the money wisely - at a time when the share price has tanked , but buybacks are nearly always done when a company has surplus cash and QED when the share price should be high.
rogerramjett: DLG is not exciting. Its just consistent. We all need insurance. Whatever impact of new regulations are, all of the insurers are in the same boat. Can't see a drop in dividend. That is why they buy back. To support it. Any further share price weakness and I will add purely for the dividend. Its already at 9%. Of you don't need the capital as I don't I'm just not looking at the share price and reinvesting the dividends for at least the next 5 years.
wba1: city1911; if you work at DLG I assume it is not on the underwriting, pricing or financial side. DLG has always had one of the lower expense ratios and whilst new systems and other improvements can help they will, at best, only shave fractions off that expense ratio. Insurance is always ultimately about loss ratio and reserves (if you have padded the reserves in past years you can smooth profit even during times of trouble with claims). But the latter is necessary at the moment in the case of DLG and other general insurers as pricing was weak through the pandemic and earns over the lifetime of the policies - which has stretched into the recovery in traffic and back to work. So accident year loss ratios for 2022 and 23 will be likely to deteriorate and need subsidy from prior year reserve releases. Any recovery in underlying performance is unlikely before 2024. But I expect DLG have plenty of reserve padding to allow them to smooth declared profits. One uncertainty, especially relevant to DLG with its very high retention rate, is the extent to which the cost of living issue will increase shopping around. A hit to the retention rate feeds directly into loss ratio as recency of acquisition is a factor in loss ratio with the most recently acquired business performing the poorest (as the quality of information on which pricing is based is lower than for business held for some years). It will be a while before we know if this is a factor.
woodhawk: Good point about the potential for reduced journeys/mileage, Gary1966!! I don't really worry about the DLG share price anymore... I just keep pocketing the divis!!
wba1: Strange Midas comments. The DLG results will always be driven by the underwriting performance, primarily from private motor and the ability to renew business at historic levels. This is why the Darwin expansion is worrying. Underwriting performance is inextricably linked to the wider market COR (although less volatile because of the higher retention) and that will not be great in 2022/23 before it improves. DLG is fine as an income play but Midas seems to have no idea on how insurers make money - although whether that will influence share price short term in current circumstances is another matter.
wba1: To offer some thoughts on adejuks question; They are ok results - nothing to get excited about but not poor, at least on the surface. There are a few concerns however, and I suspect these are driving some of the market sentiment (rather than Ukraine, which does not seem to have been the big issue for the market today that it was yesterday). * The financial result has been produced by a substantial increase in the contribution from prior year development. Operating profit is up £60m, but prior year releases are up £85m. I do not see this as a big issue as 2021 was bound to be down on 2020 at accident year level and a prior year release simply smooths profit by making some use of the funds stashed in 2020 for this purpose. But it is the sort of thing which spooks analysts. * I am less than keen on the drivers of new business, especially on motor. DLG class all their brands as 'direct'. They are no such thing. Darwin is wholly intermediated through comparison sites and much Churchill business also comes from that source. Darwin grew hugely in 2021. Any underwriter will tell you that comparison site business has a much lower retention and inferior performance to business written directly. So growth from this source will affect profit in future years unless balanced by true direct growth. * DLG make a point that their average premium/rating strength declined less than the market in 2021. But any decline in rates in 2021 will greatly impact 2022 accident year loss ratio as circa half the business written in 2021 will earn in 2022 (at those reduced rates) and claims inflation is still there (and may accelerate in current circumstances) So I expect 2022 accident year performance to deteriorate substantially. But what does this mean for the investment case? It may not be the key issue. DLG have obviously stashed substantial prior year reserves which they can release to offset short term performance. Investment return is an interesting issue and others may be better placed to comment on the outlook, but it is material to the overall result and opportunities may be there for improved returns in a higher inflation environment. And the rate environment has been improving this year. this should prevent 2022 deteriorating too much further in 2023. And finally, I suspect the analysts are also spooked by any mention of storms and are mentally factoring in climate armageddon. I may be wrong but I see any issues on this front being much slower developers and, for the foreseeable future, being manageable through rating, risk selection and reinsurance. I think DLG is now at an investable level, but that is not to say it is the best insurance investment.
jubberjim: Am surprised by gradual decline in the share price over the last few days but as a holder will be looking to buy as and when it dips Don t know if it is worries about the impending storms and the projected damage cost that is weighing upon the share price but all insurers should be similarly affected Just have to ride it out and see what transpires This and lgen are my go to stocks primarily for the divis long of Lloyds in the banks Bt.a in the telecos and of course a few gold shares but the rest held in cash for time being Keeping an eye on abdn but is going nowhere at moment which is surprising considering it is primarily concerned with investment but what do I know Results out soon hopefully more clarity as to direction Good luck all
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