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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.

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