II Editor
03 Aug 2016
NEW ARTICLE: Trends and Targets for 3/08/2016 " DIRECT LINE (LSE
LG) Â With a member of the FTSE 100 experiences such a vivid day, it's surely worth a glance to see why the market firstly bothered gapping it up and also, where they probably intend take the price. As the chart below ..."[link]
Kingel
02 Aug 2016
HL view Direct Line Group - Ordinary Dividend up 6.5%, plus 10p specialIn half year results announced this morning, Direct Line Group announced a 6.5% increase in the ordinary dividend, to 4.9p, and a 10p special dividend. Direct Line Group shares rose 4.5% in early trading. The group saw 3.9% growth in gross written premiums, supported by strong growth in Motor in-force policies (up 2.5%) and premium rates (up 9.5%). Operating profit from ongoing operations decreased £12.2m to £323.6m, due largely to an £18.5m reduction in investment gains.The Group's combined operating ratio in the half was strong at 89.6%, even after the negative 1.6 percentage point impact of the Flood Re levy. Return on equity fell by 5.4pts, but remained strong at 17.8%.The Group's estimated Solvency II capital coverage ratio is 184% (post-dividend)Motor - 47% of gross written premium: In force Motor policies rose 2.5% versus a year earlier, with own brand up 3.1% and pricing improving 9.5% (largely a reflection of claims inflation). Motor gross written premium increased by 9.8% as the Direct Line brand performed well.Home - 24% of gross written premium: A 2.8% gain in Direct Line branded in-force policies was more than offset by a 5.4% fall in partnership policies. Pricing remained broadly flat with the overall gross written premium down 3.5%.Rescue and other personal - 12% of gross written premium: In-force policies fell 6.1%, primarily driven by lower packaged bank account volumes from partners, with gross written premium up 1.5%.Commercial - 17% of gross written premium: In-force policies rose 4.9%, with gross written premiums increasing 2.3%.OutlookThe Group continues to expect a full year combined operating ratio of between 93% and 95%, assuming normal weather. The group expects total costs for 2016 to be slightly below 2015 levels, even after absorbing the Flood Re levy. Our ViewMotor and Home insurance is a tough industry. Highly competitive and selling broadly generic products; few companies can maintain any semblance of pricing power. That tends to drive combined operating ratios (the percentage of premiums that are paid out as claims or expenses) closer to 100% as companies are forced to attract customers through cutting their prices. The advent of price comparison websites has not helped. Fortunately for Direct Line (DLG), the strength of the Direct Line brand means that it is able to bypass price comparison sites altogether, while also supporting high levels of customer retention. That has helped support pricing, keeping margins strong. As the market leader DLG enjoys access to more information on claims and customer behaviour than competitors, helping the Group to price more accurately, while scale also provides opportunities for cost cutting (we're impressed that Direct Line can reduce its costs sufficiently to absorb an otherwise challenging scale of Flood Re levy). Today's special dividend follows the approval of the group's partial internal Solvency II model by the Prudential Regulatory Authority (PRA). The group has said that it will be targeting a Solvency range of 140%-180% under the new model. Dividends announced today take the group to 184%, suggesting potential for further returns to shareholders, if the board think there remains surplus capital in the business.Overall Direct Line Group is delivering a respectable underwriting performance in a challenging and highly competitive sector. If it can maintain its brand position, with the resulting price advantage then the group should continue to generate strong returns on equity though of course there are no guarantees. As with any insurer though the group's exposure to wider market movements through its investment operations should not be taken lightly. The group is currently yielding 6.9%.All yield figures are variable and not guaranteed. The information in this article is not intended to be advice or a recommendation to
Rhigos
02 Aug 2016
Re: Wow Glad I sold 40% or so of my RDSB and bought more DLG with proceeds on 28 Jul 2016, DLG paying bigger dividend than Shell and special dividend given a big rise in SP of over 11%. Suppose SP will slip back quite a lot when they go ex-div on 11 Aug. Div + special paid on 9 Sep.
II Editor
02 Aug 2016
NEW ARTICLE: Investors in for a windfall as Direct Line hikes dividend "Benign weather, rising premium income and now a special dividend for investors, there's not much that can disrupt the positive mood surrounding LSELGirect Line Insurance. Not even Brexit.The Churchill, Privilege and Green Flag insurer insists ..."[link]
skimp
02 Aug 2016
Wow Anyone know why there is such a rise in price?
JR710
18 May 2016
The Petition is gaining support Apologies for board hopping but-The petition is going quite well; ~4950 signatures so far. Although it really needs a turbo boost.[link] petition was stalled in parliament since 12th Aug 15; finally green lit on 12th feb 2016.The FCA don't even reply on the matter, now is your chance to have your say.If you hate seeing buys reported as sells etc!!!!!!Has already been sent to Martin Lewis, Daily Mail, Moneyweek & Watchdog.My local MP supported this petition by writing to the petitions committee to help un-stall it.There’s 650 MP’s in Westminster, So have you written to your MP? 649 to go!If this petition doesn’t reach 10,000; then imo we might as well have not bothered as it will almost certainly be filed B1N; @ 10,000 the government should respond. We are currently getting approx. 100 new signatures a week, but need 3x that amount to reach the target with only 15 weeks to go.At 5000 I will send this to the PM & the chancellor as well as my MP again.So – If you haven’t yet signed or indeed have but haven’t passed it on to others, then now’s the time to do so. If each person who has signed can get just one other person to sign then we will double the total immediately. I have posted to all aim listed gas n oilies, currently doing the footsy 100. But I can only do so much to push this. Really need you guys & gals to help. Thanks to all who have signed so far.We really need a social / media savvy individual to help generate more interest in this.
Guitarsolo
13 May 2016
Re: AlphaValue note - Research Tree I wouldn't bother with the correction Percy. "Foxred" is a bot - posing as a contributor to relentlessly throw Alphavalue's "research notes" around......Put them on ignore along with all the other bots.It's a funny old world isn't it? Filtering out automons clogging up a bulletin board.....Guitarsolo
Percy W
05 May 2016
Re: AlphaValue note - Research Tree DLG is Direct Line Insurance, not Dialog Semiconductor.
Kingel
04 May 2016
Premiums up but policies fall HL Direct Line Group have reported a 4.2% increase in gross written premiums for ongoing operations versus Q115, although total in-force policies fell 1.8% following a significant fall in the Rescue and Other Personal lines.Operating expenses rose £5m, offset by lower claims handling expenses.Flood Re (the industry levy which helps to provide affordable flood insurance to high risk areas) launched on 1 April 2016. The group's contribution, based on market share, is expected to be £25m in 2016. Direct Line shares were flat in early trading.[link] - 46% of gross written premiums:In-force Motor policies rose almost 2% versus Q115 with gross written premiums for the quarter improving markedly to £360.7m (Q115: £326.4m). Growth was driven by improvements in both own brand and partnership with the division benefitting from a significant 9.4% increase in risk adjusted pricing.Home - 26% of gross written premiums:In-force Home policies were broadly flat, with a small decline in partnership policies offset by a small increase in own brand. Gross written premiums declined 3.5% in the quarter, driven largely by a 5% decline in partnership premiums. Risk adjusted prices declined 2.3%.Rescue/Other - 12% of gross written premiums:Rescue and Other Personal Lines saw in-force policies fall 3.7% as a result of lower partnership Rescue volumes. Gross premiums rose 1.9% with Rescue up 4% following a strong performance from the group's Green Flag own brand.Commercial - 15% gross written premiums:Commercial in-force policies rose 5.8% based on stronger Direct Line for Business sales. Gross written premiums rose 2.1%.Paul Geddes, CEO, commented: "For the rest of 2016, we will aim to build on these foundations, while keeping a firm control of our costs, and we reiterate our combined operating ratio target of 93% to 95% for ongoing operations."All yield figures are variable and not guaranteed
nk1999
03 Apr 2016
Telegraph- Questor "The Questor Columnirect Line is weathering the storm: The storms that battered much of Britain this winter have left insurers nursing millions of pounds in losses. Direct Line, the country’s biggest car and household insurance company by premiums sold, is at the sharp end of efforts to keep customers protected without veering over to the wrong side of the industry’s already thin margins. This winter saw the costliest flood damage since Direct Line joined the stock market in 2012. In January, the firm said that storms Desmond, Eva and Frank would cost it up to £140 million. In March, the insurer revealed its commercial business had paid out 104.5p in costs and claims for every 100p it took in premiums, while its car and household arms remained profitable. Results overall were better than expected, with pretax profits rising to £507.5 million, thanks in part to reserves released from previous years. The Government’s Flood Re scheme launches tomorrow, with Direct Line contributing £24 million to a pot that helps flood-prone households afford insurance. Fitch has said insurers will benefit from a rise in potential customers and access to shared data on risky areas. Another weather-related measure that will hit insurers is the rising insurance premium tax, which has soared from 6% in 2015 to 10% by this October, although the latest 0.5% rise was less stark than expected. The proceeds will be used to improve flood defences, with firms likely to pass the cost on to customers. Generational shifts are also presenting the car insurance business with dilemmas about how to cater for financially squeezed younger drivers. Direct Line has roped in the YouTube star Alfie Deyes to showcase its telematics service, which tracks a driver’s movements and rewards careful driving. It now has 78,000 telematic customers, benefiting from being an early adopter. Direct Line joined the market after unshackling itself from RBS with a value of £2.6 billion, and is now worth more than double that sum. While its valuation is now a heady 13 times future earnings, the income stream it offers has been reliable. Dividends per share last year were 50.1p per share, including a 27.5p special payout after the sale of Direct Line’s international business. The firm is faring well in a tough market. Hold. Direct Line at 364.1p. Questor says “Hold”.
Made A Few Quid
10 Mar 2016
Re: Dividends 2015 final and second special interim dividends 10 March 2016-"Ex-dividend" date for the 2015 final and second special interim dividends 11 March 2016 -Record date for the 2015 final and second special interim dividends 27 April 2016 -Final date for election under the Dividend Reinvestment Plan 19 May 2016 -Payment date for the 2015 final and second special interim dividends
Percy W
10 Mar 2016
Re: Dividends The fall in the share price today seems to prove that you are right, as the dividend is about 4.9% of the share price, which eat the time of writing is down 6.15%, and so the 6.15-4.9 = 1.25%, which represents the general noise of the day. I would suggest that this drop was to be expected and nothing to worry about.
steve1ern
10 Mar 2016
Dividends: Yes this is my understanding and this would account for the SP fall this morning.
highsnlows
08 Mar 2016
Dividends Am I correct that the Final dividend of 9.2p and the Special dividend of 8.8p will both go ex-div on the 10th March and will both be paid on 19th May?HnL
II Editor
04 Mar 2016
NEW ARTICLE: Stockwatch: Attractive for stellar income "Is it onwards and upwards for shares in @GB:UKX:FTSE 100 non-life insurer LSELGirect Line, or are they due a period of consolidation? Might they also still be attractive for income? The chart shows strong, if quite volatile, progress since ..."[link]
