Direct Line Insurance Group Live Discussion

Kingel 03 Nov 2015

Direct Line reports increased premiums The insurance company reported a 1.3% increase in gross written premiums for its ongoing operations over the first nine months of its financial year. Motor gross written premium increased by 4.1% compared to the same nine month period of 2014. Own brands performed well with strong retention overall and increased sales, particularly on price comparison websites from its Churchill brand. The share price rose marginally in early UK stock market trading.For the Home insurance business, gross written premiums proved to be 4% lower than for the first nine months of 2014, primarily due to partnerships which were 5.2% lower, while own brands experienced a smaller reduction of 2.7%. The insurer highlighted that Home's strong brands maintained their competitiveness in a deflationary market supported by previous investments in pricing and claims management initiatives.Total in-force group wide policies for ongoing operations during the period reduced by 1.1% to 16.1 million. A reduction in in-force policies for other personal lines of 3.5% since the start of the year primarily reflected lower packaged bank account volumes. More favourably, total group costs for ongoing operations were cut by 7%.Chief Executive Comment:"Our strategy is progressing well and we continue to see the benefits of our programmes to improve customer experience and differentiate our brands, with a strong performance in Motor helping us deliver overall growth in our gross written premium. At the same time, we have also realised further efficiencies throughout the business, with costs reducing."Outlook:Management noted that "The Group's markets remained highly competitive in the first nine months of 2015. The motor market overall has seen price rises, but this should be viewed in the context of rising claims costs. Deflation in the home market has continued, while competition was stronger in the rescue market in the third quarter."The Group reiterates its expectation to achieve a combined operating ratio for 2015 in the range of 92% to 94% for ongoing operations - the combined operating ratio expresses costs and claims expenses as a proportion of premium income, and is a key measure of underwriting profitability. A reading below 100 equates to a profit.All yield figures are variable and not guaranteed.[link]

Ring of Gold 04 Aug 2015

Re: HL View I saw the CEO being interviewed on CNBC this morning (constantly being interrupted by that annoying and rude Steve Sedgwick chap) and he came across as being very confident, competent and bullish for the future, all looking good!R.O.

Kingel 04 Aug 2015

HL View The insurance company reported a solid increase in half year operating profit for its ongoing operations (H1 2015: £335.8 million up from £235.7 million in H1 2014). The results benefited from an absence of claims from major weather events and higher than expected reserve releases together with improved operating efficiency. Gross written premium from ongoing operations increased by 0.4%, with Motor and Home own brand in-force policies proving to be broadly stable. A 4.5% rise in the interim dividend payment (4.6 pence per share) was declared compared to last year. The share price rose by over 2% in opening UK stock market trading. The results followed the group's late May (2015) announcement regarding the completion of the disposal of its International division, which comprised of its Italian and German operations, with all of the net proceeds returned to shareholders as a special interim dividend of 27.5 pence per share (paid on 24 July 2015), following shareholder approval of an 11 for 12 share consolidation. Direct Line is now totally focused on UK general insurance. Strategic and operational highlights:Investment in brand differentiation through further enhancements to Direct Line proposition and improved Churchill positioning.Improved customer retention rates and Net Promoter Scores in Personal Lines.Reduced total cost base for ongoing operations by 7.6% in first half of 2015, while building on technical pricing and claims management initiatives.Growth in eTrade and direct Commercial channels and continued momentum in telematics motor insurance in-force policies.Chief Executive Comment:"Our first half performance shows the benefits of the many improvements that we continue to make to our business. Customers have reacted positively to the refreshed propositions for Direct Line and Churchill, as well as better customer service. This has led to increased retention rates and, in particular for the Direct Line brand, improved Net Promoter Scores. Together, this has helped us to hold our gross written premium flat in competitive markets.At the same time, our efforts on efficiency have improved our expense ratio, while improvements in claims and pricing continue to support strong reserve releases from previous years and a good loss ratio so far this year. Action on our investment portfolio has contributed to improving our yield, despite the low interest rate environment."Management Outlook Comment:"The Group's markets remained highly competitive in the first half of 2015; the motor market overall has seen modest price rises and the home market has seen further price deflation. The Rescue market experienced increased competitor activity towards the end of the period.Against this backdrop, the Group continues to adopt a disciplined approach to managing the trade-off between margin and volumes. Meanwhile, the Group is investing in building future capability and continues to identify opportunities to improve efficiency."[link]

ramp duty 27 Jul 2015

Re: Special Dividend Payment Thanks Hertsowl. Mine showed up on my account at lunchtime today, dated 27th July.

Hertsowl 27 Jul 2015

Re: Special Dividend Payment My dividend payment was paid to my investment account on Friday.

ramp duty 27 Jul 2015

Special Dividend Payment Has anyone received their special dividend payment? Was it paid on Friday?

Kingel 01 Jul 2015

‘Self helpÂ’ Direct Line completes share consolidation Direct Line (DLGD) has consolidated its shares as part of the insurer’s plan to return £412 million of capital to shareholders following the sale of its Italian and German operations to Mapfre.Peel Hunt analyst Anthony Da Costa retained his ‘buy’ recommendation and increased his target price from 360p to 365p.‘[Yesterday] Direct Line share price [was] adjusted for the 27.5p special dividend, with a subsequent share consolidation of 11 for 12. Our target price moves to 365p,’ he said.‘Currently the shares trade at 13.1 times December 2016 estimated price/earnings ratio, a marginal discount versus the sector’s 13.2 multiple. Direct Line overtakes Esure as our top motor insurance pick, following the Esure share price rally.’He added: ‘Self-help is in action and the group is positioned to perform given a turn/stabilisation in the pricing cycle.’In a market retreating on Greece fears the shares shed a penny to 338p.[link]

Medway Man 30 Jun 2015

Re: Special Dividend It was based on shares on register yesterday at 6pm........... See RNS Feed 62670 dated 29/5

Market Guru 30 Jun 2015

Re: Special Dividend Before the consolidation...is my understanding.Regards, M.G.

topero 30 Jun 2015

Special Dividend The special dividend of 27.5p due to be paid at the end of July. Is it paid on the number of shares owned before the consolidation or the new shares.

Medway Man 26 Jun 2015

Special Divi and more Hi allI know I am getting on in age so am prone to 'senior moments'.................but I wonder if anyone can clarify whether they read (rather than I had the following in a dream) something along the lines that DLG might do a further special dividend come March 2016?I have it in my mind, that the article or RNS feed I read it in, did not spell it out that it was 100% certainty, but certainly made it sound as if it could potentially happen; whether it would be at the same amount as the one we are about to go ex div with on Tuesday.

wangbaudan 25 Jun 2015

Re: special xd DS Thanks for that. Sorry, should have researched

deepsleeves 25 Jun 2015

Re: special xd Wang..You are correct but there will also be an 11 for 12 share consolidation so you will get your own cash back341 - 27 = 314 314 / 11 and * by 12 = 314So no real changeDeep

wangbaudan 25 Jun 2015

special xd That right there's a rather large 27.5p xd on 30th? No-one seems to be commenting.

II Editor 20 Jun 2015

NEW ARTICLE: Trends and Targets for 19/06/2015 "This report should have appeared on Friday morning but was delayed due to a glitch.  DIRECT LINE (LSELG) reminds us of the classical piece of music, "Don't cha wish you Share was Hot like Me!" Examining the Non Life Insurance Sector has ..."[link]