DB:D1LN

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Direct Line Insurance Group

Executive Summary

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


Snowflake Analysis

Excellent balance sheet average dividend payer.


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

Stable Share Price: D1LN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

13.0%

D1LN

-1.6%

DE Insurance

0.7%

DE Market


1 Year Return

16.6%

D1LN

-6.4%

DE Insurance

8.8%

DE Market

Return vs Industry: D1LN exceeded the German Insurance industry which returned -6.5% over the past year.

Return vs Market: D1LN exceeded the German Market which returned 8.1% over the past year.


Shareholder returns

D1LNIndustryMarket
7 Day13.0%-1.6%0.7%
30 Day22.7%-2.6%0.1%
90 Day19.6%15.3%12.6%
1 Year16.6%16.6%-1.3%-6.4%11.2%8.8%
3 Yearn/a23.3%7.3%5.4%-3.0%
5 Yearn/a55.8%23.6%15.9%0.3%

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 compared to its fair value and its price relative to the market?

26.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: D1LN (€3.71) is trading below our estimate of fair value (€5.05)

Significantly Below Fair Value: D1LN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: D1LN is poor value based on its PE Ratio (12.1x) compared to the DE Insurance industry average (11x).

PE vs Market: D1LN is good value based on its PE Ratio (12.1x) compared to the German market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: D1LN is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: D1LN is overvalued based on its PB Ratio (1.5x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is Direct Line Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: D1LN's forecast earnings growth (8% per year) is above the savings rate (0.2%).

Earnings vs Market: D1LN's earnings (8% per year) are forecast to grow slower than the German market (24.5% per year).

High Growth Earnings: D1LN's earnings are forecast to grow, but not significantly.

Revenue vs Market: D1LN's revenue (2% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: D1LN's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: D1LN's Return on Equity is forecast to be low in 3 years time (19.9%).


Next Steps

Past Performance

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

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: D1LN has high quality earnings.

Growing Profit Margin: D1LN's current net profit margins (11.8%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: D1LN's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: D1LN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: D1LN had negative earnings growth (-10.5%) over the past year, making it difficult to compare to the Insurance industry average (-12.4%).


Return on Equity

High ROE: D1LN's Return on Equity (12.9%) is considered low.


Next Steps

Financial Health

How is Direct Line Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: D1LN's short term assets (£3.6B) do not cover its short term liabilities (£5.6B).

Long Term Liabilities: D1LN's short term assets (£3.6B) exceed its long term liabilities (£831.6M).


Debt to Equity History and Analysis

Debt Level: D1LN's debt to equity ratio (18.2%) is considered satisfactory.

Reducing Debt: D1LN's debt to equity ratio has reduced from 20% to 18.2% over the past 5 years.

Debt Coverage: D1LN's debt is well covered by operating cash flow (82.7%).

Interest Coverage: D1LN's interest payments on its debt are well covered by EBIT (20.9x coverage).


Balance Sheet


Next Steps

Dividend

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

4.33%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: D1LN's dividend (4.33%) is higher than the bottom 25% of dividend payers in the German market (1.23%).

High Dividend: D1LN's dividend (4.33%) is in the top 25% of dividend payers in the German market (3.78%)


Stability and Growth of Payments

Stable Dividend: D1LN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: D1LN's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), D1LN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: D1LN's dividends in 3 years are forecast to be covered by earnings (80.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Penny James (51 yo)

1.25yrs

Tenure

UK£1,902,000

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

Compensation vs Market: Penny's total compensation ($USD2.49M) is below average for companies of similar size in the German market ($USD3.69M).

Compensation vs Earnings: Penny's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Penelope James
CEO & Executive Director1.25yrsUK£1.90m0.046%
£ 2.4m
Timothy Harris
CFO & Executive Director0.83yrUK£927.00kno data
Steven Maddock
Chief Operating Officer4.17yrsno data0.014%
£ 701.0k
Paul Smith
Investor Relations Directorno datano datano data
Humphrey Tomlinson
General Counsel9.58yrsno data0.0080%
£ 412.3k
Mark Evans
Managing Director of Marketing & Digital1.08yrsno datano data
Victoria Wallis
Chief People Officer0.33yrno datano data
Neil Manser
Chief Strategy Officer0.42yrno datano data
Jonathan Greenwood
Managing Director of Commercial11.58yrsno data0.011%
£ 555.3k
José Vazquez
Chief Risk Officer8.42yrsno data0.012%
£ 603.7k
Jennifer Thomas
Head of Financial Communicationsno datano datano data
Lisa Tremble
Head of External Affairsno datano datano data

1.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: D1LN's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Penelope James
CEO & Executive Director1.25yrsUK£1.90m0.046%
£ 2.4m
Timothy Harris
CFO & Executive Director0.83yrUK£927.00kno data
Sebastian James
Independent Non-Executive Director6yrsUK£95.00k0.00037%
£ 19.0k
Danuta Gray
Independent Non-Executive Chairmanno dataUK£117.00k0.00074%
£ 38.1k
Richard Ward
Senior Independent Non-Executive Director4.58yrsUK£120.10kno data
Fiona McBain
Independent Non-Executive Director1.92yrsUK£99.00kno data
Mark Gregory
Independent Non-Executive Director2.42yrsUK£101.10kno data
Jane Hanson
Independent Non-Executive Director8.67yrsUK£131.00k0.00082%
£ 42.2k
Gregor Stewart
Independent Non-Executive Director2.42yrsUK£134.00k0.00022%
£ 11.3k

2.6yrs

Average Tenure

56yo

Average Age

Experienced Board: D1LN's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£4.628b
  • Listing Market Cap: UK£5.147b
  • Shares outstanding: 1.35b
  • Website: https://www.directlinegroup.co.uk

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 Analysis2020/08/10 21:19
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.