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Thanks for this sufc. I read back in May that they were hoping to save about £1818 per claim. Based on the Jul-Sep portal usage my very rough back of an envelope calculation is that direct line should have about 59,000 fewer claims per annum - based on 12% of total motor insurance market. That equates to £109 million but have to allow for claims over £5k. This should mean cheaper policies and reduced costs for Direct line. The 9 November update should be very good news.
Hi but Blackrock would have to pay £4 plus to get Direct Line. If that happened I'd buy Legal & General, M&G and maybe Persimmon. That would give more dividend than Direct Line at present.
The newish CEO doesn't seem keen on paying a special dividend - prefers share buy backs. If the board doesn't start awarding themselves free shares then £100 million share buy back pays for the current 2.7% dividend increase per annum so no hit on profits. 9 November update will be interesting as probably more information on the recently introduced whiplash caps and online claim portal for whiplash claims up to £5k. Insurance shares are cyclical and I reckon (hope) they'll be much higher by final results in March - unless there's another lockdown etc. Also the solvency ratio was a massive 195% at half year results - after paying the final dividend. It should be higher at end year results so she might pay a special dividend but I would think a higher share buy back - it was £150 million before Covid.
I did it with Direct Line. Sold at 3.22 day before ex-div idend and bought back at just under 3.00 a couple of weeks later. I'll look to do the same next year if LGEN is around 3.00 or higher in early April.
It was 4.25 last month with new investor Cevian pushing for a £5bn share buyback. She said would update later this year. This should be at least 4.25 again soon unless Covid gets worse.
Just seen an article on GOV.UK that savings will be about £1.2 billion with claims capped by the length of the injury e.g. Whiplash only £240 for up to three mo nths. Insurers have 'pledged ' to pass on the savings of about £35 a case but Direct Line will have reduced costs ????
Hi sufc have you seen any statistics on how much insurers might save. Thanks
They announced solvency ratio of 191 at the recent results and they're comfortable at 140-180 range - so I reckon more buybacks using that capital unless they choose the more unlikely special dividend option. This year's buyback works out at about 7p a share.
Just click on News on the Direct Line share page on the Hargreaves Lansdowne website - any purchases are shown under company announcements. Daily at the moment.
Hi I sold at just over 322 and bought back at 302. I'll look to do the same next year if it's high enough.
Should have said might pay the REST of the declared 2019 final dividend later this year which is 15.4p - 21'4p minus the 6p interim dividend.
If you look at the corporate website it states the 6p dividend is the second 2019 interim dividend and will report on the final 2019 dividend in the fourth quarter of 2020.
AVIVA MIGHT BE PAYING THE WHOLE 2019 FINAL DIVIDEND LATER THIS CALENDAR YEAR - AND THEY HAVEN'T DECLARED ANY INTERIM 2020 DIVIDEND YET.