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Direct Line Insurance Group

LSE:DLG
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DLG
LSE
£5B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. The last earnings update was 36 days ago. More info.


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DLG Share Price and Events
7 Day Returns
0.4%
LSE:DLG
-0.6%
GB Insurance
1.2%
GB Market
1 Year Returns
-7.3%
LSE:DLG
-5.4%
GB Insurance
2.5%
GB Market
DLG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Direct Line Insurance Group (DLG) 0.4% -2.7% 2.9% -7.3% -4.8% 26.5%
GB Insurance -0.6% 7.9% 9.8% -5.4% 16.5% 21%
GB Market 1.2% 5.3% 9.8% 2.5% 16.9% 6.7%
1 Year Return vs Industry and Market
  • DLG underperformed the Insurance industry which returned -5.4% over the past year.
  • DLG underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Price Volatility
DLG
Industry
5yr Volatility vs Market

DLG Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Direct Line Insurance Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Direct Line Insurance Group.

LSE:DLG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= £1.89 * 17.2%
£0.33
Book Value of Equity per Share Weighted future Book Value estimates from 9 analysts. £1.89
Discount Rate (Cost of Equity) See below 6.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:DLG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.724 (1 + (1- 19%) (7%))
0.843
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.843 * 6.65%)
6.83%

Discounted Cash Flow Calculation for LSE:DLG using Excess Returns Model Model

The calculations below outline how an intrinsic value for Direct Line Insurance Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:DLG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (17.2% – 6.83%) * £1.89)
£0.20
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.20 / (6.83% - 1.23%)
£3.50
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £1.89 + £3.50
£5.39
LSE:DLG Discount to Share Price
Calculation Result
Value per share (GBP) From above. £5.39
Current discount Discount to share price of £3.42
= -1 x (£3.42 - £5.39) / £5.39
36.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Direct Line Insurance Group is available for.
Intrinsic value
37%
Share price is £3.42 vs Future cash flow value of £5.39
Current Discount Checks
For Direct Line Insurance Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Direct Line Insurance Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Direct Line Insurance Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:DLG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.33
LSE:DLG Share Price ** LSE (2019-04-25) in GBP £3.42
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.15x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.3x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Direct Line Insurance Group.

LSE:DLG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:DLG Share Price ÷ EPS (both in GBP)

= 3.42 ÷ 0.33

10.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Direct Line Insurance Group is good value based on earnings compared to the GB Insurance industry average.
  • Direct Line Insurance Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Direct Line Insurance Group's expected growth come at a high price?
Raw Data
LSE:DLG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.22x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-1.4%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.55x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 566 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:DLG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.22x ÷ -1.4%

-7.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What value do investors place on Direct Line Insurance Group's assets?
Raw Data
LSE:DLG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £2.14
LSE:DLG Share Price * LSE (2019-04-25) in GBP £3.42
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.09x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.52x
LSE:DLG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:DLG Share Price ÷ Book Value per Share (both in GBP)

= 3.42 ÷ 2.14

1.6x

* Primary Listing of Direct Line Insurance Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Direct Line Insurance Group is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Direct Line Insurance Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Direct Line Insurance Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DLG Future Performance

 How is Direct Line Insurance Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-1.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Direct Line Insurance Group expected to grow at an attractive rate?
  • 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 1.2%.
Growth vs Market Checks
  • Direct Line Insurance Group's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
  • Direct Line Insurance Group's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:DLG Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:DLG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -1.4%
LSE:DLG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts -1.4%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:DLG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:DLG Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,287 468 1
2022-12-31 3,186 442 1
2021-12-31 3,207 421 8
2020-12-31 3,142 417 12
2019-12-31 3,065 406 12
LSE:DLG Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 3,397 472 457
2018-09-30 3,430 490 423
2018-06-30 3,462 508 389
2018-03-31 3,458 527 412
2017-12-31 3,454 546 434
2017-09-30 3,423 545 376
2017-06-30 3,393 545 318
2017-03-31 3,355 704 299
2016-12-31 3,318 862 279
2016-09-30 3,290 766 334
2016-06-30 3,263 669 389
2016-03-31 3,243 607 394

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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 revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:DLG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Direct Line Insurance Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DLG Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.34 0.34 0.34 1.00
2022-12-31 0.32 0.32 0.32 1.00
2021-12-31 0.30 0.33 0.27 11.00
2020-12-31 0.30 0.39 0.27 16.00
2019-12-31 0.29 0.31 0.28 14.00
LSE:DLG Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.33
2018-09-30 0.31
2018-06-30 0.28
2018-03-31 0.30
2017-12-31 0.32
2017-09-30 0.28
2017-06-30 0.23
2017-03-31 0.22
2016-12-31 0.20
2016-09-30 0.24
2016-06-30 0.28
2016-03-31 0.28

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Direct Line Insurance Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Direct Line Insurance Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Direct Line Insurance Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DLG Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Direct Line Insurance Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 GB Insurance industry average in the past year (5.3% vs 5.3%).
Earnings and Revenue History
Direct Line Insurance Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Direct Line Insurance Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DLG Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 3,397.40 457.10 720.70
2018-09-30 3,429.75 423.05 727.25
2018-06-30 3,462.10 389.00 733.80
2018-03-31 3,458.00 411.50 735.65
2017-12-31 3,453.90 434.00 737.50
2017-09-30 3,423.20 376.20 733.95
2017-06-30 3,392.50 318.40 730.40
2017-03-31 3,355.45 298.60 725.30
2016-12-31 3,318.40 278.80 720.20
2016-09-30 3,290.30 333.65 706.80
2016-06-30 3,263.40 388.50 720.10
2016-03-31 3,243.15 393.85 702.80
2015-12-31 3,222.90 399.20 685.50
2015-06-30 3,238.60 442.00 674.70
2015-03-31 3,271.90 400.65 685.75
2014-12-31 3,305.20 359.30 696.80
2014-06-30 3,182.30 322.90 700.90
2014-03-31 3,338.50 321.15 929.30
2013-12-31 3,486.90 310.80 748.20
2013-09-30 3,972.30 285.60 666.20
2013-06-30 4,025.10 253.30 674.30
2013-03-31 4,064.30 199.20 847.30
2012-12-31 4,200.00 184.30 847.30
2012-09-30 4,279.90 167.50 1,687.50
2012-06-30 4,421.40 189.60 1,464.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Direct Line Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Direct Line Insurance Group used its assets more efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Direct Line Insurance Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Direct Line Insurance Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Direct Line Insurance Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DLG Health

 How is Direct Line Insurance Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Direct Line Insurance Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Direct Line Insurance Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 10.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Direct Line Insurance Group Company Filings, last reported 3 months ago.

LSE:DLG Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,919.60 326.80 1,182.00
2018-09-30 2,919.60 326.80 1,182.00
2018-06-30 2,828.60 324.20 1,000.50
2018-03-31 2,828.60 324.20 1,000.50
2017-12-31 3,061.60 319.50 1,390.90
2017-09-30 3,061.60 319.50 1,390.90
2017-06-30 2,654.50 592.40 1,106.60
2017-03-31 2,654.50 592.40 1,106.60
2016-12-31 2,521.50 596.50 1,222.70
2016-09-30 2,521.50 596.50 1,222.70
2016-06-30 2,668.80 616.60 1,055.10
2016-03-31 2,668.80 616.60 1,055.10
2015-12-31 2,630.00 586.50 982.60
2015-06-30 2,993.70 598.90 1,345.10
2015-03-31 2,993.70 598.90 1,345.10
2014-12-31 2,810.50 602.50 905.00
2014-06-30 2,795.40 570.60 846.70
2014-03-31 2,795.40 570.60 846.70
2013-12-31 2,790.00 559.50 917.90
2013-09-30
2013-06-30 2,792.80 564.60 942.60
2013-03-31 2,831.60 882.30 1,545.90
2012-12-31 2,831.60 882.30 1,508.40
2012-09-30
2012-06-30 3,164.20 599.80 2,565.60
  • 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).
X
Financial health checks
We assess Direct Line Insurance Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Direct Line Insurance Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DLG Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.57%
Current annual income from Direct Line Insurance Group dividends. Estimated to be 8% next year.
If you bought £2,000 of Direct Line Insurance Group shares you are expected to receive £171 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Direct Line Insurance Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Direct Line Insurance Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.1%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:DLG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:DLG Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.00 1.00
2022-12-31 0.26 1.00
2021-12-31 0.27 10.00
2020-12-31 0.28 15.00
2019-12-31 0.29 14.00
LSE:DLG Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-02 0.293 8.556
2018-08-01 0.356 10.754
2018-03-28 0.354 9.976
2018-02-27 0.354 9.261
2017-05-11 0.246 6.671
2016-08-02 0.241 6.751
2016-03-22 0.226 6.305
2016-03-01 0.226 5.904
2015-08-04 0.174 4.582
2015-03-24 0.297 8.302
2015-03-03 0.297 8.256
2014-08-04 0.249 7.762
2014-05-02 0.183 6.334
2013-11-01 0.092 3.423
2013-10-15 0.092 3.803
2013-08-02 0.092 3.885
2013-02-28 0.087 3.782

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Direct Line Insurance Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Direct Line Insurance Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Direct Line Insurance Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Direct Line Insurance Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DLG Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Geddes
COMPENSATION £3,238,000
AGE 49
TENURE AS CEO 9.7 years
CEO Bio

Mr. Paul Robert Geddes has been the Chief Executive Officer at Direct Line Insurance Limited and Direct Line Group, Ltd. at The Royal Bank of Scotland Group plc since August 2009. He led the Group through its financial turnaround, separation from RBS Group, initial public offering (“IPO”) and its entry into the FTSE 100. Mr. Geddes has been Chief Executive Officer and an Executive Director at Direct Line Insurance Group PLC since August 12, 2009. He served at Direct Line, Churchill, Privilege and Green Flag. He served as the Head of UK Retail at Direct Line Insurance Group PLC since May 2009. He served as the Chief Executive Officer of General Insurance Businesses at Royal Bank of Scotland Group plc since May 2009. He served as the Chief Executive Officer of retail business at Royal Bank of Scotland Group plc since December 2006. His career started in marketing at Procter & Gamble, in the UK and Europe. Mr. Geddes entered retailing in 1997, holding senior roles in Kingfisher and GUS Groups before joining the RBS Group in 2004 as Managing Director, Products and Marketing & Retail Banking. He has been a Non-Executive Director of Channel Four Television Corporation since December 5, 2016. Mr. Geddes has been Executive Director of Direct Line Group Ltd. since August 2009. He serves as Deputy Chairman of the Association of British Insurers (“ABI”) Board. He became the CEO of RBS Group’s mainland UK retail banking business. He is a Fellow of the Chartered Institute of Bankers in Scotland and a Trustee of the Dewar Arts Awards. Under his leadership, the Group has delivered value for its customers and returns for shareholders by maintaining strong financial performance and underwriting discipline. Mr. Geddes graduated from Oxford in 1990, where he read Politics, Philosophy and Economics.

CEO Compensation
  • Paul's compensation has been consistent with company performance over the past year.
  • Paul's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Direct Line Insurance Group management team in years:

6
Average Tenure
49
Average Age
  • The average tenure for the Direct Line Insurance Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paul Geddes

TITLE
CEO & Executive Director
COMPENSATION
£3M
AGE
49
TENURE
9.7 yrs

Penny James

TITLE
CFO & Executive Director
COMPENSATION
£4M
AGE
49
TENURE
1.1 yrs

Mike Holliday-Williams

TITLE
MD of Personal Lines & Executive Director
COMPENSATION
£2M
AGE
48
TENURE
4.9 yrs

Steve Maddock

TITLE
Chief Operating Officer
TENURE
2.8 yrs

Andy Broadfield

TITLE
Director of Investor Relations

Humphrey Tomlinson

TITLE
General Counsel
TENURE
8.3 yrs

Simon Linares

TITLE
Group Human Resources Director
TENURE
4.6 yrs

Jon Greenwood

TITLE
Managing Director of Commercial
TENURE
10.3 yrs

José Vazquez

TITLE
Chief Risk Officer
TENURE
7.1 yrs

Jennifer Thomas

TITLE
Head of Financial Communications
Board of Directors Tenure

Average tenure and age of the Direct Line Insurance Group board of directors in years:

2.7
Average Tenure
54.5
Average Age
  • The average tenure for the Direct Line Insurance Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mike Biggs

TITLE
Chairman of the Board
COMPENSATION
£406K
AGE
66
TENURE
7 yrs

Paul Geddes

TITLE
CEO & Executive Director
COMPENSATION
£3M
AGE
49
TENURE
9.7 yrs

Penny James

TITLE
CFO & Executive Director
COMPENSATION
£4M
AGE
49
TENURE
1.4 yrs

Mike Holliday-Williams

TITLE
MD of Personal Lines & Executive Director
COMPENSATION
£2M
AGE
48
TENURE
2.2 yrs

Jane Hanson

TITLE
Independent Non-Executive Director
COMPENSATION
£130K
AGE
51
TENURE
7.3 yrs

Danuta Gray

TITLE
Independent Non-Executive Director
COMPENSATION
£107K
AGE
60
TENURE
2.2 yrs

Gregor Stewart

TITLE
Independent Non-Executive Director
COMPENSATION
£92K
AGE
54
TENURE
1.1 yrs

Mark Gregory

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
55
TENURE
1.1 yrs

Richard Ward

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£120K
AGE
61
TENURE
3.3 yrs

Clare Thompson

TITLE
Independent Non-Executive Director
COMPENSATION
£102K
AGE
64
TENURE
6.6 yrs
Who owns this company?
Recent Insider Trading
  • Direct Line Insurance Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
03. Apr 19 Sell Paul Geddes Individual 01. Apr 19 01. Apr 19 -239,883 £3.53 £-846,787
03. Apr 19 Sell Michael Holliday-Williams Individual 01. Apr 19 01. Apr 19 -22,000 £3.55 £-77,990
04. May 18 Sell Jane Hanson Individual 03. May 18 03. May 18 -26,190 £3.60 £-94,200
04. May 18 Buy Jane Hanson Individual 03. May 18 03. May 18 11,083 £3.61 £39,999
X
Management checks
We assess Direct Line Insurance Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Direct Line Insurance Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DLG News

Simply Wall St News

Does Direct Line Insurance Group plc's (LON:DLG) CEO Salary Reflect Performance?

Paul Geddes has been the CEO of Direct Line Insurance Group plc (LON:DLG) since 2009. … See our latest analysis for Direct Line Insurance Group? … Our data indicates that Direct Line Insurance Group plc is worth UK£4.6b, and total annual CEO compensation is UK£3.2m.

Simply Wall St -

Is Direct Line Insurance Group plc's (LON:DLG) 16% ROE Better Than Average?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Direct Line Insurance Group plc (LON:DLG). … Direct Line Insurance Group has a ROE of 16%, based on the last twelve months. … View our latest analysis for Direct Line Insurance Group?

Simply Wall St -

Interested In Direct Line Insurance Group plc (LON:DLG)? Here's What Its Recent Performance Looks Like

In this article, I will take a look at Direct Line Insurance Group plc's (LON:DLG) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Check out our latest analysis for Direct Line Insurance Group? … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.8%, indicating the rate at which DLG is growing has accelerated

Simply Wall St -

Does Direct Line Insurance Group plc (LON:DLG) Have A Good P/E Ratio?

To keep it practical, we'll show how Direct Line Insurance Group plc's (LON:DLG) P/E ratio could help you assess the value on offer. … Direct Line Insurance Group has a price to earnings ratio of 10.81, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Who Has Been Selling Direct Line Insurance Group plc (LON:DLG) Shares?

So before you buy or sell Direct Line Insurance Group plc (LON:DLG), you may well want to know whether insiders have been buying or selling. … Direct Line Insurance Group Insider Transactions Over The Last Year. … Over the last year we saw more insider selling of Direct Line Insurance Group shares, than buying

Simply Wall St -

If You Bought Direct Line Insurance Group plc (LON:DLG) Today, There May Be An Upside

Help shape the future of investing tools and you could win a $250 gift card! … This is because the rules banks face are different to other companies, which can impact the way we forecast their cash flows. … For example, insurance companies are required to hold more capital to reduce the risk to shareholders.

Simply Wall St -

These Factors Make Direct Line Insurance Group plc (LON:DLG) An Interesting Investment

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Direct Line Insurance Group plc (LON:DLG) due to its excellent fundamentals in more than one area.

Simply Wall St -

Is Direct Line Insurance Group plc (LON:DLG) Excessively Paying Its CEO?

Paul Geddes became the CEO of Direct Line Insurance Group plc (LON:DLG) in 2009. … View our latest analysis for Direct Line Insurance Group? … According to our data, Direct Line Insurance Group plc has a market capitalization of UK£4.3b, and pays its CEO total annual compensation worth UK£4.3m.

Simply Wall St -

A Note On Direct Line Insurance Group plc's (LON:DLG) ROE and Debt To Equity

To keep the lesson grounded in practicality, we'll use ROE to better understand Direct Line Insurance Group plc (LON:DLG). … Our data shows Direct Line Insurance Group has a return on equity of 14% for the last year. … See our latest analysis for Direct Line Insurance Group?

Simply Wall St -

Does Direct Line Insurance Group plc's (LON:DLG) 22% Earnings Growth Make It An Outperformer?

In this article, I will take a look at Direct Line Insurance Group plc's (LON:DLG) most recent earnings update (30 June 2018) and compare these latest figures against its performance over the past few years, along with how the rest of DLG's industry performed. … Did DLG's recent earnings growth beat the long-term trend and the industry. … DLG's trailing twelve-month earnings (from 30 June 2018) of UK£389m has.

Simply Wall St -

DLG Company Info

Description

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 company offers personal motor, home, and rescue insurance products, as well as other personal line insurance products, including travel, pet, and creditor products; and commercial insurance for small and medium-sized enterprises. It also provides management, motor vehicle repair, insurance intermediary, support and operational, legal, and breakdown recovery services. The company sells its insurance products directly through price comparison Websites and phone, as well as through partners and brokers under the Direct Line, Churchill, Green Flag, Direct Line for Business, NIG, DLG Partnerships, Privilege, Shotgun, and DLG Auto Services brands. The company was formerly known as RBS Insurance Group Limited and changed its name to Direct Line Insurance Group plc in February 2012. Direct Line Insurance Group plc was founded in 1985 and is headquartered in Bromley, the United Kingdom.

Details
Name: Direct Line Insurance Group plc
DLG
Exchange: LSE
Founded: 1985
£4,666,821,274
1,364,567,624
Website: http://www.directlinegroup.co.uk
Address: Direct Line Insurance Group plc
Churchill Court,
Westmoreland Road,
Bromley,
Greater London, BR1 1DP,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DLG Ordinary Shares London Stock Exchange GB GBP 11. Oct 2012
OTCPK DIIS.F Ordinary Shares Pink Sheets LLC US USD 11. Oct 2012
DB D1LN Ordinary Shares Deutsche Boerse AG DE EUR 11. Oct 2012
BATS-CHIXE DLGL Ordinary Shares BATS 'Chi-X Europe' GB GBP 11. Oct 2012
OTCPK DIIS.Y ADR NEW Pink Sheets LLC US USD 27. Dec 2012
Number of employees
Current staff
Staff numbers
11,229
Direct Line Insurance Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 22:02
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/24
Last earnings filing: 2019/03/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.