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The figures are not good, lets hope Ageas dont walk away or we will be looking at 1.50
I suspect another Ageas offer will be listened to, as the update was underwhelming. The dividend of 4p has only appeared because of Ageas, otherwise there wouldn’t be one, and full resumption is not guaranteed. DLG looks pretty vulnerable.
Shock operating loss, lucky for the fireside gain on the disposal.
Ageas should move today. Popcorn ready.
4p only, lower end.
This is key for me. The white flag is up. Investors are done waiting.
More jam than Hartleys !
While the picture has improved, we need to do more to drive performance and we have identified immediate actions we can take in 2024 to create value, including substantially reducing our cost base, driving claims excellence and optimising pricing capabilities whilst returning us back to higher quotability levels.
A 4 pence dividend is dismal
Lucky the markets are positive this am.
In many ways ... especially the King's X noticeboards and London. Woke n broke.
Are back!
Of course they will come back with a bid Mary .
We are Uk citizens beings pilfered out of the last remnants of Uk profitability. You’ll be given short term incentives . And be happy.
The demise of the uk has been happening before your eyes Mary.
The bull case is...
It looks increasingly likely that Ageas will come back with an improved offer after it appointed Deutsche Bank to work alongside its existing list of advisors on the bid.
Any bid would need to be made by 27 March, six days after Direct Line’s results.
The set up...
UK
Direct Line takeover speculation still rife as results approach
Published: 11:58 15 Mar 2024 GMT
Direct Line Insurance Group PLC (LSE:DLG)’s final results on Thursday, 21 March come hot on the heels of its rejection of a takeover bid from Belgium’s Ageas last week.
Indeed, “investors will be keen to hear thoughts from management and details on ‘further initiatives’ supposedly coming” in the results, according to Hargreaves Lansdown’s Matt Britzman.
Ageas’ offer had valued Direct Line at £3.17 billion, comprising of 120p in cash and one new Ageas share for every 28.41107 Direct Line shares.
“There’s still plenty hanging in the balance,” Britzman added, with speculation around takeover deals propping up the share price.
Aside from takeover talk, motor insurance price hikes will likely be a key point of contention in Direct Line’s update.
That said, “Direct Line was slower to raise prices than the wider market which means it’ll take longer to feel the benefits than peers”, Britzman commented.
Any commentary from new chief executive Adam Winslow on plans to improve margins will therefore be awaited, he added, with Direct Line still facing a “long way to go” in regaining investor confidence.
Per DLG. ... a lot riding on the presentation today. Let's have a good one.
The Board is confident in Direct Line Group's standalone prospects given its strong strategic position, powerful brands, and robust capital position. Adam Winslow will take up the role as CEO on 1 March. He is tasked with refreshing the strategy and operational focus of the Group with the clear objective of returning to a sustainable level of operating profit over time.
The 14p ship sailed long ago, however that would be a gamechanger is reinstated. (100% hope 1% likelihood)
A ship steadying is the order of the day, not a slalom through the rapids.
Last Sept this was a half year the commentary...
Direct Line soars as insurance deal with Intact overshadows losses
By Radhika Anilkumar and Khushi Mandowara
September 7,2023
Shares up almost 15% after Intact Financial deal
Sept 7 (Reuters) - Shares of Britain's Direct Line (DLGD.L), opens new tab soared 18% on Thursday after it agreed to sell its brokered commercial insurance business for 520 million pounds ($648 million) to bolster its capital as it struggles with financial losses.
The sale to Canada's Intact Financial (IFC.TO), opens new tab announced late Wednesday would help in increasing the company's solvency ratio on a pro forma basis by about 45 percentage points, Direct Line said.
"This transaction makes strategic and financial sense, despite there being a tail risk of the run-off of the commercial back book reserves," Peel Hunt analyst Andreas Van Embden said in a note.
Shares in the home and motor insurer, which have fallen more than 30% this year, rose 15% to 173.4 pence, as the deal overshadowed results showing it fell to a first-half loss.
Direct Line has had a tumultuous time as high inflation and supply constraints due to the war in Ukraine and the pandemic pushed up motor costs.
Its CEO stepped down in January.
"First-half earnings are clearly not at an acceptable level yet," acting CEO Jon Greenwood told Reuters.
"We have been taking significant pricing actions, which are starting to take effect."
In its results statement, the company said it would reviewing its motor business.
"The improved Motor margins now being achieved should provide a platform to support an improvement in operating profit into 2024," it said.
It logged an operating loss of 78.3 million pounds for ongoing operations in the six months ended June 30, compared with a profit a year ago.
"The weakness of Direct Line's motor insurance arm remains a concern although, again, the firm is taking steps to bolster its performance," analyst at trading and investment platform eToro Mark Crouch said.
"However, it is far from being out of the woods."
280p and I’m extremely pleased,
Or good results and a 14p progressive divi
Yes 21st
I believe it is 7am
Over the next weeks...
He can deliver a better, puts off the bidder, bidder withdraws, shares tank, buy the dips....
OR
Could we be presented with an agreed £3.30+ offer and be done ✔️
Very experienced CEO with good pedigree, he’s had a long garden leave stint and will be well prepped for this.
All investors were sleeping then suddenly a mad rush to the phone to try and read the RNS at 7am 😉
I thought the rns was due 7am 20/03?
Is it 21/03
This is a weird one.
If he doesn’t deliver enough to hold the price and offer a good outlook the major shareholders will withdraw their support of him and force the BOD/CEOto accept the offer.
The CEO has to deliver a belter to survive!
Roll on 7am
Fingers crossed bloody tightly, feast or famine. It’s a pure punt on instinct.
Big nuts, respect. Wish you all the best. (And myself)
Powell's chat atm sending US higher, should help the opening.