DB:D1LN

Stock Analysis Report

Direct Line Insurance Group

Executive Summary

Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Direct Line Insurance Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

DB:D1LN

0.5%

DE Insurance

-0.7%

DE Market


1 Year Return

n/a

DB:D1LN

21.2%

DE Insurance

-7.6%

DE Market

No trading data on D1LN.

No trading data on D1LN.


Share holder returns

D1LNIndustryMarket
7 Day-0.5%0.5%-0.7%
30 Day4.5%2.1%-0.8%
90 Day-4.7%2.1%-3.8%
1 Yearn/a26.5%21.2%-4.7%-7.6%
3 Yearn/a85.4%63.0%18.4%8.2%
5 Yearn/a101.2%61.1%28.8%11.1%

Price Volatility Vs. Market

How volatile is Direct Line Insurance Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Direct Line Insurance Group undervalued based on future cash flows and its price relative to the stock market?

40%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Direct Line Insurance Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Direct Line Insurance Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Direct Line Insurance Group is good value based on earnings compared to the DE Insurance industry average.

Direct Line Insurance Group is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

Direct Line Insurance Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Direct Line Insurance Group is overvalued based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

How is Direct Line Insurance Group expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

-2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Direct Line Insurance Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Direct Line Insurance Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Direct Line Insurance Group's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.

Direct Line Insurance Group's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.

Direct Line Insurance Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Direct Line Insurance Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Direct Line Insurance Group performed over the past 5 years?

3.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Direct Line Insurance Group's year on year earnings growth rate has been positive over the past 5 years.

Direct Line Insurance Group's 1-year earnings growth exceeds its 5-year average (5.3% vs 3.8%)

Direct Line Insurance Group's earnings growth has not exceeded the DE Insurance industry average in the past year (5.3% vs 9.4%).


Return on Equity

Direct Line Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Direct Line Insurance Group used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Direct Line Insurance Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Direct Line Insurance Group's financial position?


Financial Position Analysis

Direct Line Insurance Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Direct Line Insurance Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Direct Line Insurance Group's level of debt (11.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (20.1% vs 11.2% today).

Debt is well covered by operating cash flow (144.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 30.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 10.5x debt.


Next Steps

Dividend

What is Direct Line Insurance Group's current dividend yield, its reliability and sustainability?

8.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Direct Line Insurance Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).

Direct Line Insurance Group's dividend is above the markets top 25% of dividend payers in Germany (3.92%).

Direct Line Insurance Group has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Direct Line Insurance Group only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

What is the CEO of Direct Line Insurance Group's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Penny James (50yo)

0.2yrs

Tenure

UK£3,920,000

Compensation

Mrs. Penelope Jane James, also known as Penny, ACA, has been the Chief Executive Officer at Direct Line Insurance Group Plc since May 09, 2019 and as its Executive Director since November 1, 2017. She also ...


CEO Compensation Analysis

Penny's remuneration is higher than average for companies of similar size in Germany.

Penny's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.8yrs

Average Tenure

The tenure for the Direct Line Insurance Group management team is about average.


Board Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

The average tenure for the Direct Line Insurance Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

Sell€91,21703 Apr 19
Michael Holliday-Williams
EntityIndividual
Shares22,000
Max Price€4.15
Sell€1,227,27303 Apr 19
Paul Geddes
EntityIndividual
Shares292,672
Max Price€4.19
Sell€681,49703 Apr 19
Michael Holliday-Williams
EntityIndividual
Shares162,519
Max Price€4.19
Sell€250,02303 Apr 19
Humphrey Tomlinson
EntityIndividual
Role
General Counsel
Shares60,359
Max Price€4.14
Sell€373,60803 Apr 19
Jonathan Greenwood
EntityIndividual
Role
Managing Director of Commercial
Shares90,194
Max Price€4.14
Sell€217,46103 Apr 19
Simon Linares
EntityIndividual
Role
Group Human Resources Director
Shares52,498
Max Price€4.14
Sell€525,75703 Apr 19
Steven Maddock
EntityIndividual
Role
Chief Operating Officer
Shares126,925
Max Price€4.14
Sell€1,377,68903 Apr 19
Penelope James
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares332,593
Max Price€4.14
Sell€472,58303 Apr 19
José Vazquez
EntityIndividual
Role
Chief Risk Officer
Shares114,088
Max Price€4.14
Sell€990,40503 Apr 19
Paul Geddes
EntityIndividual
Shares239,883
Max Price€4.13
Sell€148,13003 Sep 18
Michael Holliday-Williams
EntityIndividual
Shares39,975
Max Price€3.71
Sell€199,73803 Sep 18
José Vazquez
EntityIndividual
Role
Chief Risk Officer
Shares53,902
Max Price€3.71
Sell€130,82503 Sep 18
Humphrey Tomlinson
EntityIndividual
Role
General Counsel
Shares35,305
Max Price€3.71
Sell€172,22403 Sep 18
Jonathan Greenwood
EntityIndividual
Role
Managing Director of Commercial
Shares46,477
Max Price€3.71
Sell€101,57703 Sep 18
Simon Linares
EntityIndividual
Role
Group Human Resources Director
Shares27,412
Max Price€3.71
Sell€217,28403 Sep 18
Steven Maddock
EntityIndividual
Role
Chief Operating Officer
Shares58,637
Max Price€3.71
Sell€291,62803 Sep 18
Paul Geddes
EntityIndividual
Shares78,700
Max Price€3.71
Sell€266,57807 Aug 18
Penelope James
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares69,998
Max Price€3.81

Ownership Breakdown


Management Team

  • Andy Broadfield

    Director of Investor Relations & Capital

  • Simon Linares

    Group Human Resources Director

    • Tenure: 4.8yrs
  • Mark Evans

    Managing Director of Marketing & Digital

  • Humphrey Tomlinson

    General Counsel

    • Tenure: 8.5yrs
  • Jon Greenwood

    Managing Director of Commercial

    • Tenure: 10.5yrs
  • Neil Manser

    Interim Chief Financial Officer

    • Tenure: 0.2yrs
  • Jennifer Thomas

    Head of Financial Communications

  • Steve Maddock

    Chief Operating Officer

    • Tenure: 3.1yrs
  • José Vazquez

    Chief Risk Officer

    • Tenure: 7.3yrs
  • Penny James (50yo)

    CEO & Executive Director

    • Tenure: 0.2yrs
    • Compensation: £3.92m

Board Members

  • Fiona McBain (58yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: £27.00k
  • Richard Ward (62yo)

    Senior Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: £120.40k
  • Jane Hanson (52yo)

    Independent Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: £130.00k
  • Mark Gregory (56yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: £75.00k
  • Danuta Gray (61yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: £107.00k
  • Mike Biggs (67yo)

    Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: £406.00k
  • Gregor Stewart (55yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: £92.00k
  • Sebastian James (53yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: £95.00k
  • Penny James (50yo)

    CEO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: £3.92m

Company Information

Direct Line Insurance Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Direct Line Insurance Group plc
  • Ticker: D1LN
  • Exchange: DB
  • Founded: 1985
  • Industry: property and casualty insurance
  • Sector: insurance
  • Market Cap: UK£4.571b
  • Listing Market Cap: UK£5.093b
  • Shares outstanding: 1.36b
  • Website: Click here

Number of Employees


Location

  • Direct Line Insurance Group plc
  • Churchill Court
  • Westmoreland Road
  • Bromley
  • Greater London
  • BR1 1DP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLGLSE (London Stock Exchange)YesOrdinary SharesGBGBPOct 2012
DLGLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPOct 2012
DIIS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2012
D1LNDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2012
DIIS.YOTCPK (Pink Sheets LLC)ADR NEWUSUSDDec 2012

Biography

Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. It operates through Motor, Home, Rescue and Other Personal Lines, and Commercial segments. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/21 23:36
End of Day Share Price2019/07/19 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.