Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
The insurers clearly have the ear of the Government - raising the small claims limited from April 2017 will save motor insurers more than a billion a year - see article below from Kerry Underwood - solicitor. This should double DLGs motor profit in 2018 - will there be a reduction in premiums? Don't bet on it! This is massive news - which the market does not yet understand focusing on premium rather than claims/claim inflation. My bold estimate is a billion pound profit for 2018 - which would mean 600m in divi - approx. 45p per share divi = 10.8% yield on current share price - in reality a 6% yield by 2018 would mean a share price of about £7.20. Good for share holders - not so good for those who are injured! The Autumn Statement to the House of Commons this afternoon contained an announcement that the small claims limit for all personal injury claims will be raised from £1,000 to £5,000. No date has been set but presumably it will be April 2016. It should be noted that this was a financial statement by the Chancellor of the Exchequer for the coming financial year, so expect implementation sooner rather than later. Courts will be prohibited from awarding general damages for pain, suffering and loss of amenity in minor soft tissue injuries, but “Claimants will still be entitled to claim for “special damages” including treatment for any injury if required and any loss of earnings.” So, an injured person will have to prove their claim and get medical evidence accordingly, but will then get no general damages for those proven injuries. In reality that means that the small claims limit for whiplash will be £10,000 as it is only general damages which has the lower threshold, currently £1,000 but to be raised to £5,000. Absent general damages the small claims limit is and will remain £10,000. The proposals are at page 125 at section 3.103 and read, in full: Insurance 3.103 Motor insurance – The government will bring forward measures to reduce the excessive costs arising from unnecessary whiplash claims, and expects savings of £40 to £50 per motor insurance policy to be passed onto customers, including by: removing the right to general damages for minor soft tissue injuries; removing legal costs by transferring personal injury claims of up to £5,000 to the small claims court. Claimants will still be entitled to claim for “special damages” including treatment for any injury if required and any loss of earnings.” The raising of the small claims limit does not require primary legislation. My view is that the removal of the courts’ power to compensate for a tort does require an Act of Parliament.
Evening. We did it, £4, a great achiement but not unexpected. it's been a relatively trouble free journey for me since November 2012. At £5 this share will yield about 6% in 2017, still very good value, I'll post again at £5 or when I sell which is agreed to be on ex divi day August 2016. Good luck!
Dear All, Very happy with the results - looking forward to reinvesting the divi - I won't be posting again until this share hits £4 - hopefully this year! Even at £4 the share will be yielding 7.5% I believe the highest yield in the ftse100. I will be buying every Monday throughout 2015. Good luck
Good luck! Hopefully we will not need it - 20p per share (total divi including SD) is my estimate - the share price will be affected negatively if premiums have not started to rise - irrespective of profit or divi
I suspect you are referring to the large buy trades from yesterday. Large funds will be buying in on a regular basis for the yield. I will be buying, as always on Monday - but let us see what Tuesday brings - RSA results were poor - but DLG is the first main non life insurer to report - fingers crossed the pound / euro ex rate has not diluted the special dividend - the sale of direct line group Italy/Germany being in Euros.
buying every Monday, have been since Jan 2013 - this share has legs - supported by a great yield - reduced cost based - reduction in cost of claims due to LAPSO which will support year on year increase in divi - looking forward to the beginning of March price target is $5 by pre final divi march 2017
Without doubt yes - see below for one of the reasons - the other of course is the sale of the business in Italy and Germany - I would say 15p per share payable in December. Author: Institute and Faculty of Actuaries Date: Oct 20, 2014 Abstract: Research by the Institute and Faculty of Actuaries reveals that legal changes in 2013 appear to have had an impact on the number of motor insurance claims. The Institute stated that the legal changes, most significantly the Legal Aid, Sentencing and Punishment Offenders Act 2012, appear to have led to: a 10 per cent reduction in third party motor insurance injury claims; and a 4 per cent fall in the number of claimants per claim.
Two Companies to Join FTSE 100 Index London, 03 September 2014: FTSE Group (“FTSE”) confirms today that Direct Line Insurance Group and Dixons Carphone will be joining the FTSE 100 Index. In the rebalance, Barratt Developments and Rexam will leave the UK’s leading index and enter the FTSE 250 Index. The changes announced today are part of the impartial quarterly reviews endorsed by the independent FTSE Europe, Middle East and Africa (EMEA) Regional Advisory Committee. The rules-driven reviews ensure the indices continue to portray an accurate reflection of the market they represent, and form an essential component to the management of the indices. The FTSE 250 Index will see the following changes (in alphabetical order), in addition to the amendments described above: Entering FTSE 250 Index Exiting FTSE 250 Index Card Factory Nostrum Oil & Gas Saga Spire Healthcare Group SSP Group TSB Banking Group Zoopla Property Group BH Global Circassia Pharmaceuticals Dairy Crest Group Exova Group Imagination Technologies Group ITE Group Xaar FTSE operates a reserve list for the FTSE 100 Index, to be used in the event of a corporate action occurring between reviews e.g. merger, acquisition, delisting or suspension. In such cases, the reserve list constituent with the largest market capitalisation (on the date of the corporate action) will replace the outgoing constituent. With immediate effect, the following reserve list for FTSE 100 will be used (in alphabetical order): • Barratt Developments • Hikma Pharmaceuticals • Investec • Merlin Entertainments • Rexam • Taylor Wimpey All changes from this review will be implemented at the close of business Friday, 19 September 2014 and take effect from the start of trading on Monday, 22 September 2014. -Ends- Press contacts: FTSE Group Harry Stein Tel: +44 (0) 207 866 1810 or email media@ftse.com Or visit http://www.ftse.com/products/indices/uk
DLGs results are truly stunning, yet the CEOs words are cautious and conservative. Why? If DLG were too bullish it would put more pressure on them to reduce their premiums. See my earlier post re LAPSO and the significant affect this legislation in driving down the number and cost of claims. The cash DLG will generate over the next 5 years will mean this share should be the highest yielding in the FTSE 100 - even at £5 the share should yield over 5% in 5 years time. DLG have clearly shown a willingness to return cash to shareholders, therefore expect a further special divi on Nov or Dec of 20p should they sell their foreign division. The only thing i would like to see is a more generous share scheme for employees their morale may be affected given the redundancies suggested last year
Is my price target too low? Been buying every week for 18 months, now with 127k shares, I will feel a little lost when I sell this cash cow, but sell I will, as you can never amend a price target I will have also had about 50p per share in divi, by time price target me early next year
you cannot comment on DLG without a detailed understanding of the affect of the Legal Aid, Sentencing and Punishment of Offenders. Premuims will fall - a bit - but the number and cost of claims is falling dramatically - the insurers will not say this for obvious reasons - they will refer to being inundated with fraud. The effect will be felt with increase divi - year on year - the shares are yielding 8%
Insurers have not passed on all savings to motorists’ premiums, says Budsworth May 13th, 2014 by Marek Handzel Insurers may have saved at least £2.85 billion pounds in claims costs over the last two years, and motor premiums should be much lower than they are, according to Craig Budsworth, the chairman of the Motor Accident Solicitors Society (MASS). Budsworth has challenged figures produced by the AA, which suggest that the insurance industry has passed on nearly 17% of savings to motorists over the past year since the introduction of the Jackson reforms, saying that there is scope for insurers to have passed on a further 13% in premium reductions. Speaking at an ABI conference looking at whiplash claims and the effects of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act on 13 May in London, Budsworth, who is a partner at Garvins Solicitors, also asked whether the claims industry was happy that the savings being passed by insurers were at a cost proportionate to the reduction in access to justice. When questioning the figures produced by the AA, Budsworth said the the number of new claims logged on the Portal was nearly 100,000 lower in 2013-14 than in the same period between for 2012-13. "If you take into consideration that costs payable, including insurance premiums at an average £400 and success fees, on 100,000 cases this would be around £175 million," he said. "When you then add the other 710,000 logged cases, where costs are reduced further, then you can see that the savings would be significant. In fact, with these averages and assuming every case stayed in the portal, then the total spend by insurers, on costs, in 2012-13 would have been £1.5 billion, whereas for 2013-14 this would be £387 million." He said that when the average payment on the 100,000 fewer cases was factored in, then the savings made increased by another £250 million. "This is just PI and doesn’t even touch on the figures quoted by the Competition Commission enquiry showing the number of claims in 2012 being half a million down at their average quote of nearly £3000 per case," he added. "You could say that in the last two years, insurers will have saved at least £2.85 billion pounds in claims. 2011 figures, the last easily available through the ABI, show claims spend at £9.3 billion. So if my maths is right, this means premiums should be down over 30%. "Unless of course you are a shareholder in an insurer watching the hundreds of millions of pounds being made at the expense of the consumer and accident victims."