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 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.