Direct Line Insurance Group PLC (DLG)

[idpickering]

Preliminary Results year ended 31 December 2023.

Financial summary

- Stable policy count overall as the introduction of over 700,000 new Motability customers offset lower policies elsewhere primarily in Motor and associated Rescue.

- Gross written premium and associated fees increased by 27.1% during 2023, with 46.2% growth in the second half.

- Net insurance margin of minus 8.3% was impacted by the continued earn through of Motor policies written during 2022 and first half of 2023. Outside of Motor, the Group delivered a good result and a net insurance margin of 12.2%.

- In Motor, premium rate increases contributed to a 5.8 percentage point improvement in the current year net insurance claims ratio in the second half of 2023. Motor policies written since August estimated to be in line with the Group's ambition of a net insurance margin of above 10%.

- Operating loss from ongoing operations of £189.5 million in 2023, compared to a loss of £6.4 million in 2022, with the adverse movement in the net insurance margin partially offset by an increase in investment income. The proceeds of the sale of the Group's brokered commercial business contributed to a profit before tax of £277.4 million, up from a loss before tax of £301.8 million in 2022.

- The Group's solvency capital ratio at the end of 2023 improved to 201%, following significant management action and benefiting from the sale of the brokered commercial business. A dividend of 4.0 pence per share is proposed, with the solvency capital ratio, post-dividend, equal to 197%.

https://www.investegate.co.uk/announcem ... 23/8098926

Ian (No holding).

[monabri]

I mentioned elsewhere, they quoted me for car insurance more than 2x what Aviva offered. My insurance is 'up at the start of April. I was surprised at just how uncompetitive they were. They don't seem to want to insure a 60+ man, clean driving licence held for 40 years, no accidents, low mileage driver who generally goes out after commute hours.

[monabri]

https://www.reuters.com/markets/deals/b ... 024-03-22/

"Reuters
March 22, 20248:15 PM GMTUpdated 21 hours ago
Belgian insurer Ageas SA (AGES.BR), opens new tab said on Friday it did not intend to make a further offer for Direct Line (DLGD.L), after the British home and motor insurer turned down two previous proposals.

Direct Line rejected a revised 3.17 billion pound ($4 billion) takeover bid last week from Ageas, saying it "significantly undervalued" the company.

The Belgian insurer said on Friday it had not been able to "identify additional elements based on publicly available information that would justify significant adjustments to the terms of its possible offer," leading it to bow out altogether.

I was ahead of them in "bowing out" ..if they think they can charge twice what Aviva quoted me for insurance then their business model is screwed.

[idpickering]

Statement re No Intention to Make an Offer.

Ageas SA/NV ("Ageas") announces that, following the two recent attempts to engage with the Board of Directors of Direct Line Insurance Group plc ("Direct Line") in relation to the acquisition by Ageas of the entire issued and to be issued share capital of Direct Line, which were both rejected, it will not make an offer for Direct Line. As a result of this announcement, Ageas (and any persons acting in concert with it) will, except with the consent of the UK Panel on Takeovers and Mergers (the "Panel"), be bound by the restrictions contained in Rule 2.8 of the Code.

https://www.investegate.co.uk/announcem ... er/8103476

Ian (No holding).

[idpickering]

I guess this is in connection to the above, but DLG is down 12.9% on UK market opening.

Ian.

[monabri]

I guess this is in connection to the above, but DLG is down 12.9% on UK market opening.

Ian.

I can't see any other reason. I bailed out of DLG last week based on their exorbitant quote for car insurance (double Aviva's quote) and my thoughts re their business model.