The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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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.
50k here 150k there. Good high rollers. Best of British.
Hope for a pop that last longer than 15 mins like PRU and ABDN and SN. of late.
Nice I put in £150k on the expectation that results will be bad and they'll be taken over.
I think there will be another bid as the last one was just a reminder that Ageas are still interested. They are waiting for the update before deciding what the bid will be. I would be surprised if it were poor. I also don’t believe Ageas will succeed, they are using psychological anchoring to get over the line with 250p. That won’t succeed.
Fortune favors the brave. I hope.
That's a ballsy call crispiano.
I've chosen to hold until after res so we can see direction of travel for the business, plus get a clear view on whether the DLG board rejection of the offers due to "material undervaluation of the company" (my paraphrasing) has foundation.
Best of luck with your decision.
I hope you're right, i've just put in £50k on the expectation of a rise tomorrow based on results.
I think there is a chance they will be back with another bid. i can't see the dividend returning til later in the year.
I've been buying at around 208 today. yesterdays late rally seems to have vanished today. I'm expecting good news tomorrow which backs the board for turning down the bid.
Might be too late, I am in the same position but am going to buy before the market closes today, I do expect a rise.
I want to buy in here, but would rather wait to see the results as this stock can rise and fall sharply on news.
Had such a great run here that I have trimmed as a hedge (38p average cost). The PRU results show even good results can pop and flop.
FWIW
Dividend news - any will be positive, tempered by the rise from 160p.
Strong numbers expected so baked in.
Fending off bid.
Ageas bails
Remain a bull here but the event risk may be protect my gains.
Of course Ageas could also go hostile.
Come on dlg give us a good rns. I don’t need another vod or ids