Direct Line Group website

Financial Calendar

Recent Broker Notes

Barchart Indicators

Recent Market news

Direct Line Group(DLG) Fundamentals


Direct Line Announcement of Offer Price

The offer price has been set at 175 pence per Ordinary Share, implying a total market capitalisation of Direct Line Group £2,625 million.

Direct Line Announcement of Offer Price

The offer price has been set at 175 pence per Ordinary Share, implying a total market capitalisation of Direct Line Group £2,625 million.

The Offer comprises 450 million existing Ordinary Shares being sold by RBS Group (prior to the exercise of the 15% over-allotment option), representing 30 per cent of the 1,500 million Ordinary Shares that will be in issue at Admission. Gross proceeds realised by RBS Group will be £787 million (prior to the exercise of the over-allotment option).

Following admission, RBS Group will continue to hold 65.3 per cent. of Direct Line Group's ordinary shares assuming exercise of the over allotment option, which are subject to a 180 day lock-up.

Conditional dealings will commence on the London Stock Exchange at 8.00 am today (11 October 2012).

Are you sure about the epic Skinny? It's coming up as Delling Group for me.

Yes, pretty sure - most sites are not up to speed yet! :-)

DLG works on Stockwatch for Direct Line all.

OK now

On the offer, you recieve the first £1,000. After that 65% of what you asked for.

RBS sets milestone with upbeat Direct Line flotation

LONDON | Thu Oct 11, 2012 10:42am BST

(Reuters) - Shares in Direct Line set a premium on their stock market debut on Thursday, marking a milestone for parent Royal Bank of Scotland (RBS) which needed a successful float of the insurance unit as a key part of its recovery plan.

Strong demand from private investors helped RBS raise 787 million pounds through the sale of 30 percent of Direct Line's shares at 175 pence per share, near the middle of the initially stated range and valuing the business at 2.6 billion pounds ($4.2 billion).

The shares were trading at 184p by 10:00 a.m., a firm performance which also highlighted a recovery in Europe's IPO markets from an extended hiatus.

Admission to Trading on the London Stock Exchange

Further to its announcement on 11 October 2012, Direct Line Insurance Group plc ("Direct Line Group" or "the Group") is pleased to announce that its ordinary share capital of 1,500,000,000 shares has today been admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's main market for listed securities under the ticker "DLG".

RBS now owns 69.78% - Holding(s) in Company

RBS now owns 65.28% - Holding(s) in Company

Interim Management Statement

Financial highlights

· Operating profit from ongoing operations1 of £347.9 million for the nine months to 30 September 2012, up 3% (nine months to 30 September 2011: £337.8 million)

· In-force policies of 20.1 million, up 4% since the beginning of the year (31 December 2011: 19.4 million) with Motor and Home broadly stable and growth in Rescue and other personal lines

· Combined operating ratio2 for ongoing operations of 99.7% for the nine months to 30 September 2012, an improvement against the nine months to 30 September 2011 (101.9%) driven principally by a significant improvement in the loss ratio

· Annualised return on tangible equity3 ("RoTE") from ongoing operations of 10.6% for the nine months to 30 September (proforma RoTE: 13.5%4)

· Operating profit from ongoing operations for third quarter 2012 of £123.7 million, down 4% compared with third quarter 2011 reflecting lower investment returns partially offset by a better underwriting result; the third quarter 2012 combined operating ratio of 96.9% compared with 100.5% for third quarter 2011, driven by improvements in both the loss and expense ratios

· Net asset value per share of 187.2 pence and tangible net asset value per share of 159.7 pence per share (31 December 2011: 240.9 pence and 216.5 pence, respectively)


Business highlights

· Successful separation from RBS Group and subsequent IPO of Direct Line Group in
early October

· Steps announced to deliver approximately 50% of the 2014 target of £100 million gross annual cost savings5

· Continued rollout of claims transformation plan with over 400,000 Motor and Home claims now on the new claims system. Benefits from plan contributing to prior year reserve releases.

Investec initiates buy Direct Line, target price 210p

Full year results February 2nd.

Canaccord Genuity Buy 223.80 223.60 - 240.00 Initiates/Starts

Preliminary results year ended 31 December 2012

Financial highlights

· 9.3% increase in operating profit from ongoing operations1 to £461.2 million with all five divisions profitable in 2012
· Return to underwriting profit with a combined operating ratio2 of 99.2%, an improvement of 2.6 percentage points
· Return on tangible equity3 of 11.5% and pro forma return on tangible equity3 of 13.4%
· Final dividend of 8 pence per share, implying a pro forma annual payout of 55% of post-tax earnings from ongoing operations. From 2013, aim to raise the dividend annually in real terms

Strategic highlights

· Good progress made towards achieving 15% return on tangible equity target

· New and extended major partnership agreements and expanded presence of Churchill and Privilege to the four major UK price comparison websites

· Delivered benefits through claims and pricing transformation plans contributing to a 3.1 percentage point improvement in the loss ratio to 67.1%

· Announced plans relating to 70% of £100 million gross annual cost saving target with advanced plans for remainder of the proposed savings

· Improved balance sheet efficiency by raising £500 million of long-term subordinated debt and paying £1 billion of dividends to RBS Group pre-IPO. Capital position remains strong with risk based capital coverage of 145% post-final dividend

RBS completes partial sale of DLG ordinary shares

RBS Completes Partial Sale of Direct Line Group Ordinary Shares

Further to the announcement by The Royal Bank of Scotland Group plc ("RBS") on 12 March 2013, RBS has completed the sale of 252.3 million ordinary shares in Direct Line Insurance Group plc ("Direct Line Group") at a price of £2.01 pence per share, raising gross proceeds of £507 million, assuming the over-allotment is exercised in full.

RBS now holds 726.9 million ordinary shares of Direct Line Group, representing 48.5% of the issued ordinary share capital. If the over-allotment option is not exercised, RBS's remaining stake will comprise 749.9 million shares, equivalent to 49.99% of Direct Line Group's issued ordinary share capital.

The sale marks the continuation of RBS's EU-mandated disposal strategy, with cash proceeds being used for general corporate purposes.

Bruce Van Saun, RBS Group Finance Director commented, "We are pleased with the performance of Direct Line Group since the IPO in October 2012. This sale is part of our ongoing delivery against EU commitments and will take our ownership below the 50% level. We continue to execute well against the key milestones in our recovery plan".

1st Quarter Results

Financial highlights

· Operating profit from ongoing operations1 of £107.5 million for the first quarter 2013, up 32.9% (first quarter 2012: £80.9 million)

· Gross written premium for ongoing operations 4.5% lower reflecting competitive market conditions in UK personal lines, partially offset by growth in International

· Combined operating ratio2 for ongoing operations of 98.0% for the first quarter 2013, an improvement of 6.5 percentage points against the first quarter 2012 (104.5%) driven by continued prior year reserve releases and lower claims from weather events

· Annualised return on tangible equity3 from ongoing operations of 12.3% for the first quarter 2013 (first quarter 2012: 7.7%; pro forma4 full year 2012: 13.4%)

· Net asset value per share of 195.3 pence and tangible net asset value per share of 166.0 pence (31 December 2012: 189.1 pence and 161.0 pence, respectively). Tangible net asset value per share of 158.0 pence after deducting the 2012 final dividend of 8 pence per share

Strategic and operational highlights

· Continued momentum in pricing and claims initiatives, contributing to improved underwriting result, including significant prior year reserve releases

· Actions relating to the £100 million gross annual cost savings in 2014 on track. Continue to pursue initiatives to improve efficiency further

· New customer propositions and refreshed advertising campaigns for Direct Line, Churchill and Green Flag

· Good growth in the International division, particularly Germany, and Commercial full-cycle eTrading now live

Merrill Lynch Buy 211.80 220.00 235.00 Upgrades

StockMarketWire.com
Direct Line Insurance Group will announce its results for the six months to the end of June will be released on 2 August 2013.

Exane BNP Paribas Neutral 221.10 225.80 - 233.00 Reiterates

Half Yearly report

Sale of Direct Line Life & proposed capital return

Direct Line Insurance Group plc ("Company"), the holding company of the "Direct Line Group" (or the "Group"), announces that it has reached a binding agreement with Chesnara plc ("Chesnara") for the sale of Direct Line Group's UK closed life insurance business, Direct Line Life Insurance Company Limited ("DLL").

Total sale proceeds of £62 million, which include a pre-closing dividend of £23 million, represent 85% of the embedded value of DLL at 30 June 2013. In the financial year ended 31 December 2012, DLL reported a profit after tax of £6.9 million. Direct Line Group is expecting to recognise a gain on disposal of approximately £12 million. The transaction is conditional on the approval of Chesnara shareholders and of relevant regulatory authorities, which is currently expected within 60 business days.

The proceeds of the sale of DLL represent inorganic capital generation and the Company's Board of Directors believes that in this instance it is appropriate to return the sale proceeds to shareholders. Assuming the sale completes as expected, the Board intends to declare a special interim dividend of 4.0 pence per share shortly after completion of the sale. The sale of DLL and the proposed subsequent dividend are not expected to have a material impact on Direct Line Group's capital position.
Separately, the Group is reviewing opportunities to offer its customers access to appropriate life products and is currently testing a distribution only 'white-label' pilot for term assurance.

Direct Line Insurance Group plc

Direct Line Insurance Group plc (Direct Line Group) is headquartered in Bromley, Kent; it has operations in the UK, Germany and Italy.

Through its number of well known brands Direct Line Group offers a wide range of general insurance products to consumers. These brands include; Direct Line, Churchill and Privilege. It also offers insurance services for third party brands through its Partnerships division. In the commercial sector, its NIG and Direct Line for Business operations provide insurance products for businesses via brokers or direct respectively.

In addition to insurance services, Direct Line Group continues to provide support and reassurance to millions of UK motorists through its Green Flag breakdown recovery service and TRACKER stolen vehicle recovery and telematics business.

3rd Quarter Results

Financial highlights

· Operating profit1 of £417.8 million for the first nine months of 2013, up 20.1% (first nine months 2012: £347.9 million)

· Operating profit1 of £131.2 million for the third quarter of 2013, up 6.1% (third quarter 2012: £123.7 million)

· Gross written premium1 4.3% lower for the first nine months of 2013, reflecting competitive market conditions in UK personal lines, partially offset by growth in International and Commercial

· Combined operating ratio1,2 of 95.4% for the first nine months of 2013, an improvement of 4.3 percentage points against the same period last year (99.7%) arising from improved underwriting, including lower costs, as well as fewer claims from major weather events

· Annualised return on tangible equity3 from ongoing operations of 16.8% for the first nine months of 2013 (first nine months 2012: 10.6% and pro forma4 13.5%). Annualised RoTE normalised for claims from major weather events of approximately 15%5

· Net asset value per share of 187.9 pence and tangible net asset value per share of 155.8 pence

Strategic and operational highlights

· Good progress across each of the Group's strategic priorities and towards its target of a 15% return on tangible equity and its full year 2013 target of a 98% combined operating ratio

· Improved customer propositions, including the roll-out of telematics products with one in five new Direct Line motor policies with drivers aged under 25 now including telematics

· Cost saving programmes progressing well and on track to meet target to reduce the cost base6 to approximately £1,000 million in 2014

· First stage of IT migration from RBS Group delivered with new data centres established which offer more flexibility to progress digital plans

· Announcement on 8 October for the sale of the UK closed life insurance business and intention to pay a special interim dividend of 4.0 pence per share following completion

Credit Suisse Outperform 228.90 - - Reiterates

Numis Buy 228.90 265.00 265.00 Retains

Direct Line Insurance Group has completed the sale of Direct Line Life Insurance Co to Chesnara. Direct Line Insurance says proceeds of the sale will be returned to shareholders via a special interim dividend of 4.0p per share.

Lovely sustained breakout.

Technically excelent, just look at the
lower indicators, couldnt ask for more
than that.

Gone long.......large position.

Further confirmation of breakout today....

Long may it continue!

hope the weather doesn't spoil the fun.

Preliminary Results

Financial highlights

· Operating profit from ongoing operations1 of £526.5 million for 2013, up 14.2% (2012: £461.2 million); and total Group profit before tax of £423.9 million (2012: £249.1 million)

· Combined operating ratio2 for ongoing operations1 of 96.1% for 2013, an improvement of 3.1 percentage points against 2012 (99.2%), and ahead of the target 98% for 2013

· Combined operating ratio2 for ongoing operations1 in 2013 included higher than expected contribution from prior-year reserve releases of 12.4 percentage points (£435.1 million) compared to 8.7 percentage points in 2012 (£322.0 million)

· Return on tangible equity3 from ongoing operations1 of 16.0% for 2013 (2012: reported 11.5%; pro forma4 2012: 13.4%)

· 5.0% increase in final dividend per share to 8.4 pence per share and second special interim dividend of 4.0 pence per share taking total dividends for 2013 to 20.6 pence per share

· Strong capital position maintained with risk-based capital coverage5 of 148.7% post final and second special interim dividends, towards the upper end of the target range of 125% to 150%


Strategic and operational highlights

· Investment in improved customer focused capabilities and propositions, launch of two telematics products and start of roll-out of smartphone and tablet optimised websites

· Extended efficiency programme particularly in head office functions and announced additional cost savings, targeting a reduced total cost base6 of approximately £1,000 million in 2014

· Completed claims transformation for Motor and Home, extended ClaimCenter to Commercial Motor and Italy, and laid the foundations for DLG Legal Services Limited

· Continued to develop Commercial and International, in particular full roll-out of eTrading and strong
growth in Germany

2014 First Quarter Interim Management Statement

Highlights

· Continued progress on delivery of the Group's strategic development, including completing the roll-out of smartphone and tablet optimised websites for Motor, full launch of self-install telematics offering and launch of DLG Legal Services

· Gross written premium (at constant currency) for ongoing operations1 5.1% lower for the first quarter of 2014 compared with the first quarter of 2013, reflecting competitive market conditions in UK personal lines, partially offset by growth in Commercial and in Germany

· Motor gross written premium 10.2% lower compared to the first quarter of 2013. Motor prices reduced by 4% year-on-year, supported by positive claims trends and technical pricing initiatives

· Home major weather event claims of approximately £60 million in the first quarter of 2014, lower than the previously announced estimate of £70 to £90 million; Commercial major weather event claims of approximately £20 million, as previously indicated

· Investment income yield of 2.2% for the first quarter of 2014 (first quarter 2013: 2.0%), reflecting the positive effect of portfolio actions

· Reiterate 2014 aim to achieve a combined operating ratio in the range of 95% to 97% for ongoing operations, assuming a normal level of weather claims

Citigroup has upped its rating for Direct Line from 'neutral' to 'buy', saying it sees "significant upside" from further cost reductions at the insurance group. The bank has hiked its target price for the stock from 244p to 306p.

"We think Direct Line can increasingly use its market-leading position as a competitive advantage in terms of pricing, claims and cost efficiency," Citi said.

Half Yearly Report

Financial highlights

· Gross written premium for ongoing operations1 decreased by 5.1% in the first half of 2014 reflecting disciplined underwriting in competitive markets. Motor prices reduced on average by 2% during the second quarter compared with the same period in 2013

· Operating profit from ongoing operations1 of £249.1 million for the first half of 2014, down 13.1% (first half 2013: £286.6 million) reflecting higher weather claims and lower prior-year reserve releases of £218.0 million (first half 2013: £239.2 million); total Group profit before tax of £225.1 million up 7.8% (first half 2013: £208.8 million)

· Combined operating ratio2 for ongoing operations1 of 96.6% for the first half of 2014, an increase of 2.0 percentage points (first half 2013: 94.6%) reflecting higher weather claims. Current-year attritional loss ratio of 71.8% (first half 2013: 73.8%)

· Return on tangible equity3 from ongoing operations1 of 15.8% for the first half of 2014 (first half 2013: 17.3%)

· Interim dividend per share of 4.4 pence representing growth of 4.8% over 2013 interim dividend, and a special interim dividend per share of 10.0 pence taking total interim dividends to 14.4 pence per share

Strategic and operational highlights

· Improvement in personal lines trading capability through new smartphone and tablet optimised websites for Motor, delivery of a number of pricing projects and implementation of further claims initiatives

· Development of telematics with launch of self-install proposition in Motor and extension to Commercial

· On track to achieve total cost base4 target of approximately £1,000 million in 2014 with 5.4% reduction in the first half of 2014 to £496.0 million (first half 2013: £524.1 million). Restructuring and other one-off costs reduced by approximately 60% compared with the first half in 2013

· Strategic review of International, with potential disposal being explored

· Reiterate 2014 aim to achieve a combined operating ratio in the range of 95% to 97% for ongoing operations, assuming a normal level of weather claims

Ex-divi wed 13th Aug (14.4p)

.

Third Quarter Interim Management Statement

Highlights

· Gross written premium for ongoing operations1 5.0% lower for the first nine months of 2014 compared with the same period of 2013, reflecting lower gross written premium in Motor and Home, partially offset by growth in Commercial

· Motor in-force policies 0.7% lower than the previous quarter with prices stable in the third quarter of 2014

· Improvement in personal lines capability through new websites, delivery of a number of pricing projects and a new advertising campaign and propositions for the Direct Line brand. Launched self-install telematics proposition in Motor

· Total cost base2 for the nine months ended 30 September 2014 6.0% lower than for the first nine months of 2013. On track to achieve targeted total cost base2 of approximately £1,000 million in 2014. Investment income yield increased by 20 basis points on the first nine months of 2013 to 2.3%, reflecting actions to diversify the portfolio

· Announced a binding agreement with Mapfre, S.A. for the sale of the Group's International division for cash sale proceeds of €550.0 million (£430.1 million3). It is expected that substantially all of the net proceeds will be returned to shareholders

· Group expects the combined operating ratio for ongoing operations1 to be within the range of 95% to 97% including the benefit of significant reserve releases. Motor current-year loss ratio in the second half of the year is expected to be similar to the first half of 2014

Regulator warns British insurers over reserves

Preliminary Results

Financial highlights

· Gross written premium from ongoing operations1 3.8% lower for 2014 compared with 2013, reflecting disciplined approach to underwriting in Motor and Home. Gross written premium trends improved during the year with gross written premium increasing 0.4% in the fourth quarter compared with 2013

· Combined operating ratio2 from ongoing operations of 95.0% for 2014, an improvement of 0.2 percentage points on 2013 (95.2%) including stable contribution from prior-year reserve releases of £397.6 million (2013: £395.8 million)

· Stable operating profit from ongoing operations of £506.0 million for 2014 (2013: £509.9 million); while total Group statutory profit before tax for continuing operations rose 12.2% to £456.8 million (2013: £407.3 million)

· Return on tangible equity3 of 16.8% for 2014 (2013: 16.0%)

· 4.8% increase in final4 dividend per share to 8.8 pence per share and second special interim dividend of 4.0 pence per share. Total dividends for 2014 of 27.2 pence per share (2013: 20.6 pence per share)

Strategic and operational highlights

· All Initial Public Offering and 2014 published targets either met or exceeded: Group combined operating ratio; Commercial combined operating ratio; total cost base5; and return on tangible equity

· Ongoing investment in capability supporting profitability across Group with all divisions now making a material contribution

· Announced binding agreement for the sale of International division for €550 million (£430.1 million6)

· Continued active capital management with 24.6% of Initial Public Offering price already returned to shareholders, rising to 31.9% when the final4 and second special interim dividends are included. This excludes the expected return of capital associated with the sale of the Group's International division

· Focus on UK reaffirmed with clear strategic aim of making insurance much easier and better value for customers

Interim Management Statement for the first quarter of 2015

Highlights

· Gross written premium for ongoing operations1 0.9% lower with stable gross written premium in Motor

· Motor and Home in-force policies stable for a second successive quarter. Growth in Green Flag direct and Commercial eTrade and direct

· Continued investment in initiatives to improve customer experience and propositions including roll out of new quote and buy digital journey for Home products and removal of amendment fees for the Direct Line brand

· Total costs reduced by 10.1% to £220.7 million and on track to reduce costs in absolute terms in 2015

· Reiterate expectation to achieve a combined operating ratio2 in the range of 94% to 96% for ongoing operations after normalising for claims from major weather events

StockMarketWire.com
Insurance group Direct Line's underwriting profits rose to £153.2m for the six months to the end of June, up from £58.7m. Profit before tax from continuing operations rose to £315.0m from £211.7m and after-tax profits increased to £427.8m from £175.6m.

Gross written premium from ongoing operations rose 0.4% to £1,552.0 million (first half 2014: £1,546.0 million). Motor and Home own brand in-force policies broadly stable.

Other highlights:
- Return on tangible equity3 of 21.2% for the first half of 2015 (first half 2014: 14.9%). Profit before tax for continuing operations1 increased to £315.0 million (first half 2014: £211.7 million)

- Results benefited from an absence of claims from major weather events and higher than expected reserve releases together with improved operating efficiency. Underlying trends remain broadly in line with prior expectations

- Interim dividend per share of 4.6 pence representing growth of 4.5% over 2014 interim dividend

Chief executive Paul Geddes said: "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.

"With the completion of the International disposal, we are now totally focused on UK general insurance, and our capital and reserves remain strong. We are busy improving our efficiency, propositions and technology to make insurance much easier and better value for our customers."

Direct Line posted a 3.1% increase in total written gross premiums for the three months to 30 September, led by a 6.8% in Motor. That came alongside a 7% drop in total costs for ongoing operations, while investment income yield rose to 2.4%. The insurer reiterated its expectation for a full year 2015 combined operating ratio of between 92% to 94% after normalising for major weather events.

Nomura today downgrades its investment rating on Direct Line Insurance Group PLC (LON:DLG) to neutral (from buy) and left its price target at 400p.

Direct Line Insurance has estimated insurance claims from its customers for the series of storms in December will total between £110m to £140m. Severe flooding in parts of the UK followed Storm Desmond on December 5 to 6, Storm Eva on Christmas Eve, and Storm Frank on December 28 and 29, with the FTSE 100 company saying home claims were estimated at between £80m and £100m, which commercial claims are expected to be between £30m and £40m.

StockMarketWire.com
Direct Line Insurance Group's operating profit from ongoing operations increased to GBP520.7 million in 2015 - up from GBP506.0 million last time).

The combined operating ratio from ongoing operations was 94.0% for 2015, an improvement of 1.0 percentage point.

Gross written premium from ongoing operations rose by 1.7% to £3,152.4 million, with 4.8% growth in Motor for 2015 and 7.1% in the fourth quarter. Motor and Home own brands in-force policies up 1.4%.

Chief executive Paul Geddes said: "Our customers are benefiting from the many improvements we've been making, including new propositions and enhanced customer service. This has resulted in more customers coming to our brands and renewing with us.

"Growth in own brands policies has contributed to overall premium growth and, alongside lower costs, has again allowed us to deliver an improved financial performance for the year. Operating profits are up and return on tangible equity is well ahead of our target, despite the bad weather at the end of the year. We've also continued to grow regular dividends and announced another special dividend.

"To meet our ambition of being at the forefront of the fast-moving, ever-changing insurance landscape, we are focused on building on this momentum by investing in our people, brands and systems."

Deutsche Bank today reaffirms its buy investment rating on Direct Line Insurance Group PLC (LON:DLG) and raised its price target to 450p (from 420p).

Also 18p div, on the 10/3/16. Overwieght rating.

What do you think harry, you in for 18p div? dropped to 398p at mo can't make up my mind whether to wait till next week and see if it drops anymore or get in now.

BB - Attractive for stellar income

Thanks Skinny, worth a punt I hope.

Have been watching this for ages, but somehow never invested. Insurance companies are a bit of a mystery to me (even though living in Aviva City) so tend to avoid stuff I don't understand.

I've had that problem with women!

lol.

Ah, that's your problem skinny....trying to understand them! Pay your premium and when things go wrong just hope it all turns out ok.

My Mrs never gave me a dividend....... just chores.... ;))

Hopefully a bit of a sector fillip tomorrow!

Ex dividend tomorrow @18p.....

StockMarketWire.com
Direct Line Group reports another quarter of top line growth in the three months to the end of March.

Gross written premium for ongoing operations in the first quarter was 4.2% higher than a year ago, with continued growth in Motor.

Motor and Home own brands in-force policies grew for a second successive quarter. The group also reports continued growth in Green Flag direct and Commercial direct.

The group said trading benefited from investment in Direct Line brand differentiation and proposition initiatives and there was continued strong customer retention in Motor and Home.

Other highlights:
- Investment income yield maintained, with a significant improvement in the available-for-sale reserve. Net investment losses of £7.7 million mainly reflect decisions to sell certain assets in the high-yield portfolio. - Continued expectation to achieve a 2016 combined operating ratio in the range of 93% to 95% for ongoing operations, assuming a normal annual level of claims from major weather events Chief executive Paul Geddes said: "This was another quarter of top line growth for Direct Line Group, as customers responded favourably to the many improvements we have made to the business over the last few years. 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."

Peel Hunt today reaffirms its hold investment rating on Direct Line Insurance Group PLC (LON:DLG) and raised its price target to 370p (from 336p).

Barclays Capital today reaffirms its equal weight investment rating on Direct Line Insurance Group PLC (LON:DLG) and cut its price target to 364p (from 369p).

Barclays Capital today reaffirms its equal weight investment rating on Direct Line Insurance Group PLC (LON:DLG) and cut its price target to 360p (from 364p).

Half Year Report 2016

2 August 2016

Direct Line Group's Half Year Report relates to the six months ended 30 June 2016 and contains information to the date of publication. Income statement comparisons are to 1H 2015, in-force policy numbers are to 30 June 2015 and balance sheet comparisons are to 31 December 2015, unless otherwise stated.

Financial highlights

· Gross written premium for ongoing operations1 3.9% higher, with strong growth in Motor in-force policies (up 2.5%) and premium rates (up 9.5%)
· Combined operating ratio1 from ongoing operations continued to be strong at 89.6%, 0.2pts higher, including Flood Re levy impact of 1.6pts. Motor current-year attritional loss ratio1 improved by 1.0pt
· Operating profit from ongoing operations decreased £12.2m to £323.6m, after £18.5m lower investment gains
· Return on tangible equity1,2 of 23.1% (1H 2015: 21.2%). Profit before tax decreased £16.5m to £298.5m (1H 2015: £315.0m)
· Interim dividend per share of 4.9 pence (1H 2015: 4.6 pence) and special interim dividend of 10.0 pence per share
· Post dividends, the Group's estimated Solvency II capital3 coverage ratio was 184% (pre-dividends: 199%)

Strategic and operational highlights
· Continued investment in brand differentiation through enhancements and initiatives to Direct Line and Churchill propositions. In-force policies for Motor and Home own brands up 3.0%, with strong customer retention. Growth in Green Flag direct and Commercial direct
· Extension agreed with RBS of the Home and Private Insurance partnership for a further three years. This encapsulates an innovative proposition in the market to support the RBS customer-led strategy
· Well prepared for UK's referendum on EU membership, immediate investment volatility actively managed and no operational impact
· Maintains combined operating ratio expectation for 2016 in the range of 93% to 95% for ongoing operations, assuming normal annual weather. If current trends continue, the ratio is expected to be towards the lower end of this range, reflecting improved trading and higher than expected prior-year reserve releases

Paul Geddes, CEO of Direct Line Group, commented
"I am pleased with our results over the first half of 2016, as we delivered an excellent performance against a very strong comparator from the previous year. We have generated operating profits of over £320m in spite of weaker investment markets and the addition of the new Flood Re levy. Our customers continued to respond well to the refreshed propositions of our brands, which is reflected in another increase in the number of our own brands policies. Together, this demonstrates the benefits of the improvements we have made to strengthen our business.

"Although there remains a range of uncertainties in the macro-economic environment, we gain confidence from the strength of this performance, the transformation of the business and the approval of our partial internal model. These factors enabled us to increase the interim dividend to 4.9p and to declare an additional special interim dividend of 10.0p, representing a total payout to shareholders of £204.9m."

Nice div. Aug 4 ex div.

StockMarketWire.com
Direct Line Group says it has traded in the first nine months of the year while making progress on delivering its strategy.

Highlights:
- Motor and Home own brands in-force policies up 4.3%, with strong customer retention. Continued growth in Green Flag direct and Direct Line for Business

- Gross written premium for ongoing operations 4.2% higher, with continued growth in Motor own brands, up 9.7%

_ Investment income yield of 2.5% in line with full year guidance and no material gains or losses in the quarter

- Total costs of £669.5m up £16.1m from the first nine months of 2015, after absorbing £24m of Flood Re costs in Q2 2016. Q3 total costs 3.3% lower than Q3 2015. In line with previous guidance, full year business as usual costs expected to be no higher than in 2015. However, reported costs may be somewhat higher than in 2015, due to higher non-cash intangible asset impairments than in recent years

- Combined operating ratio for ongoing operations still expected to be towards the lower end of the 93%-95% target range, assuming normal weather

Chief executive Paul Geddes said: "I'm pleased that we have traded well this quarter with good policy and premium growth, particularly for Direct Line, showing that customers like the value, service and brand propositions we offer them. We have achieved this while maintaining our underwriting discipline and reiterate that we expect to be towards the lower end of our 93%-95% combined operating ratio target range."

Credit Suisse today initiates coverage of Direct Line Insurance Group PLC (LON:DLG) with a neutral investment rating and price target of 370p.

Peel Hunt today reaffirms its hold investment rating on Direct Line Insurance Group PLC (LON:DLG) and cut its price target to 365p (from 370p).

Noting the Lord Chancellor's announcement

Direct Line Insurance Group plc (the "Group") notes the announcement today by the Lord Chancellor regarding a change to the discount rate for calculating personal injury damages awards.

The Group will update the market later today regarding implications of this change.

Impact of the Lord Chancellor's announcement

27 February 2017

Direct Line Insurance Group plc (the "Group") is updating the market following today's announcement by the Lord Chancellor regarding the discount rate for calculating personal injury damages awards. The new discount rate to be used is -0.75% ("New Discount Rate"). The Group notes that the Government has said it will review the framework under which the rate has been set today by the Lord Chancellor.

The Group expects to recognise the New Discount Rate in its financial statements and also within its Solvency 2 ratio calculation for the year ended 31 December 2016. The Group has previously disclosed in its 2015 Annual Report that its claims liabilities, at that time, were calculated using a discount rate of 1.5%.

The Group currently estimates that the impact of moving to the New Discount Rate of
-0.75% on the 2016 reported financials would be to:

· reduce profit before tax by between £215 million and £230 million after reinsurance recoveries (including the impact on both ongoing and run-off business);
· increase the Combined Operating Ratio ("COR") for ongoing business by approximately 6ppts; and
· reduce the Group's year end Solvency II capital coverage ratio before dividends, to towards the higher end of the Group's target range of 140-180%. As at 30 June 2016, the Group's Solvency II coverage ratio was 184% after interim dividends.

The Lord Chancellor's recent announcement has left open the possibility of further changes to the process by which the rate is set, and therefore the rate itself. The implications of this uncertainty have not, at this stage, been included within the Group's solvency calculation.

Before adjusting for the New Discount Rate, the Group confirms it expects to achieve its guidance of a combined operating ratio of towards the lower end of the 93%-95% range adjusted for normal weather for the year ended 31 December 2016.

The Group is committed to ensuring claimants receive appropriate compensation. The Group is disappointed at the Lord Chancellor's decision, but will take the time to review the full statement of reasons given. The Group welcomes the consultation to consider options for reform to achieve a better and fairer framework for claimants and defendants.

The Group's capital and reserve strength, coupled with its leading brands, differentiated propositions and excellent service mean it is well positioned despite higher claims costs arising from the New Discount Rate.

The Group will provide further details in its preliminary full year results announcement scheduled for 7 March 2017, including its estimated Solvency II position as at 31 December 2016.

This document contains inside information for the purposes of Article 7 of European Union Regulation 596/2014.

-ENDS-

Peel Hunt Hold 336.90 365.00 365.00 Reiterates

Shore Capital Sell 336.90 - - Reiterates

The consensus of opinion seems to be that all of the insurers will pass this extra cost onto the customer, so short term pain for them and increased premiums for us.

Dead right Harry.

Preliminary results for the year ended 31 December 2016


7 March 2017

Financial highlights

· Gross written premium for Ongoing operations1,2 up 3.9% to £3,274.1m (2015: £3,152.4m), driven by growth in Motor and Home own-brand in-force policies (up 4.3%)

· 2016 results reflect the one-off impact of using the new Ogden discount rate of minus 0.75%. Operating profit from Ongoing operations of £403.5m (pre-Ogden discount rate reduction3: £578.6m; 2015: £520.7m) and profit before tax of £353.0m (pre-Ogden3: £570.3m; 2015: £507.5m). Return on tangible equity1, 2 of 14.2%, (pre-Ogden3: 20.2%; 2015: 18.5%)

· Combined operating ratio1 from Ongoing operations of 97.7% (pre-Ogden3: 91.8%; 2015: 94.0%) increased as a result of the reduction in the Ogden discount rate, partially offset by improved current-year underwriting performance and favourable weather claims. Adjusted for normal weather and before the Ogden discount rate change, the combined operating ratio was 93.5%, towards the lower end of the target range of 93% to 95%

· 5.4% increase in final dividend per share to 9.7 pence per share, (2015: 9.2 pence). Total dividends per share for 2016, including special interim dividend of 10.0 pence per share paid in September 2016 following the approval of the Group's partial internal model, of 24.6 pence per share (2015: 50.1 pence)

· The Group's estimated Solvency II capital coverage ratio4 post dividend is 165%, above the middle of the Group's risk appetite range of 140% - 180% (pre-dividend: 174%)

Strategic and operational highlights

· Direct Line Motor and Home new business growth at the highest annual level since IPO, demonstrating the success of the investment in brand, proposition and customer service

· Total costs for Ongoing operations of £923.7m broadly flat year on year before non-cash impairment charge of £39.3m, after absorbing £24.1m Flood Re levy and supporting growth in Motor and Home own brands

· Extended Home and Private Insurance partnership with RBS for a further three years, and implemented faster and easier sales journeys using cloud-based technology making connectivity and future change easier

· Invested in innovation, including partnership with PSA Peugeot Citroën for telematics extended for 4 more years, introducer role developed with Tesla, and MOVE_UK project brought into data collection stage

· Received approval from the Prudential Regulation Authority to use the Group's Solvency II partial internal model

Paul Geddes, CEO of Direct Line Group, commented
"2016 was a successful year for Direct Line Group and I'm proud of the strong own brand growth achieved in a switching market, proving our competitiveness in all our key categories and channels. This positions us well in a market disrupted by the reduction in the discount rate, and allows us to target a 93-95% combined operating ratio in 2017. We will continue to target improved efficiency and invest in customer and technology trends affecting our markets."

Peel Hunt Hold 339.90 360.00 360.00 Reiterates

Shore Capital Sell 339.90 - - Reiterates

Half year report http://www.moneyam.com/action/news/showArticle?id=5608796

Highlights and outlook

· Motor continued to grow gross written premiums, up 10% with Direct Line driving the growth
· Commercial launched the first of its flexible and bespoke business insurance policies, a part of our digital transformation, leveraging our strong Direct Line brand and our goal of making insurance much easier and better value for our customers
· The Board is rebasing the regular dividend up 38.8%, increasing the interim dividend to 6.8p3. In addition, the Group expects to operate around the middle of its Solvency II capital coverage ratio range of 140% to180%, in the normal course of business
· Reiterate the current financial targets for 2017: combined operating ratio in the range of 93% to 95% and investment income yield at 2.4%
· In addition, management targets maintaining a 93% to 95% combined operating ratio over the medium term, reflecting its ambition to maintain strong annual financial performance

Peel Hunt Hold 399.65 360.00 360.00 Reiterates

Shore Capital Sell 399.65 - - Retains

Breakout, but will it hold?
LATEST BROKER VIEWS
Date Broker New target Recomm.
13 Feb Deutsche Bank N/A Buy
12 Feb Deutsche Bank N/A Buy
12 Feb Citigroup 400.00 Neutral
9 Feb Peel Hunt 415.00 Add
7 Feb Peel Hunt 415.00 Add
6 Feb Barclays... 413.00 Overweight
1 Feb Numis 455.00 Add
1 Feb Barclays... 384.00 Equal weight
29 Jan Morgan Stanley 449.00 Overweight
22 Jan Peel Hunt 360.00 Hold

NO! :0)

Financial highlights

·    

Strong growth in direct own brands1 premiums and in-force policies up 9.3% and 5.3% respectively, driven again by continued Direct Line momentum in Motor.

 

·    

Operating profit from Ongoing operations of £610.9 million (2016: £403.5 million), primarily due to the non-repeat of the Ogden discount rate change which was reflected in 2016's results. Profit before tax of £539.0 million (2016: £353.0 million).

 

·    

Reported expense ratio in line with 2016. Excluding non-cash intangible assets impairments of £56.9 million (2016: £39.3 million), underlying expense ratio improved 0.5 percentage points to 23.5%.

 

·    

Combined operating ratio from Ongoing operations of 91.8% (2016: 97.7%) reflecting strong Motor and Commercial performance, including from prior-year reserve releases. Adjusted for normal weather, combined operating ratio towards the lower end of the target range of 93% to 95%.

 

·    

Final dividend up by 40.2% to 13.6 pence bringing the total ordinary dividends to 20.4 pence (2016: 14.6 pence) and a special dividend of 15.0 pence (2016: 10.0 pence). Total dividends for 2017 of 35.4 pence per share (2016: 24.6 pence).

 

 

Header links updated.

Credit Suisse Outperform 384.40 445.00 450.00 Reiterates

JP Morgan Cazenove Overweight 384.40 450.00 450.00 Reiterates

That's tenuous skinny! How about a line drawn from 2 Jan spikes across to Feb spike?

I'll stick with it Harry :-)

Monday blip skinny...... back to normal tomorrow. ....
Lol. Want to buy some more. ...... was hoping below 370p

Barclays Capital Equal weight 334.25 420.00 357.00 Downgrades

16 Jul Direct Line Insurance Group PLC Peel Hunt Add 337.55 - 400.00 Reiterates

https://www.reuters.com/article/britain-stocks-factors/uk-stocks-factors-to-watch-on-july-16-idUSL4N1UC229

* BRITAIN INSURANCE: The cost of a comprehensive motor insurance policy fell
11 percent in Britain in the second quarter, the biggest annual price fall since
2014, a survey said on Monday.

Watching ESUR as well.

Ex dividend 7p today.

The chart looks interesting.

Trading Update for the third quarter of 2018

Highlights

· Motor in-force policies grew by 1.9% (own brands: 3.0% growth) compared to the prior year, driven by strong retention levels, particularly in Direct Line. Premiums were lower by 1.2% (own brands: 0.5% lower) as a result of lower average premiums, primarily due to changes to propositions in the price comparison website channel, partially offset by positive rate movements. Underlying claims inflation was at the upper end of the Group's long-term expectation of 3% to 5%.

· Home own brands in-force policies grew by 0.3% and premiums grew by 0.9% compared to the prior year. Retention levels improved in the quarter while new business volumes declined. Premiums in the partnerships channel decreased by £51.3m, primarily due to the exit from the Nationwide and Sainsbury's partnerships. The Group expects claims inflation to remain within the Group's long-term expectation of 3% to 5% and that subsidence claims, including those associated with the dry summer weather in the UK, will not materially be above normal annual expectations.

· The Group's investment in its direct Rescue and Commercial brands, Green Flag and Direct Line for Business, continued to make good progress, as premiums grew by 13.1% and 7.6% respectively. In Commercial, NIG and other premiums fell by 3.2% due, in part, to exiting several larger risks which were not expected to achieve target returns.

more.....

Peel Hunt Add 315.50 400.00 Reiterates

Shore Capital Buy 315.50 370.00 Upgrades