Direct Line Insurance Group
Market Cap
US$5.4b
Last Updated
2020/09/20 06:09 UTC
Data Sources
Company Financials +
Executive Summary
Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet, good value and pays a dividend.
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: DIIS.F has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.6%
DIIS.F
-0.5%
US Insurance
0.09%
US Market
1 Year Return
n/a
DIIS.F
-15.9%
US Insurance
12.6%
US Market
Return vs Industry: Insufficient data to determine how DIIS.F performed against the US Insurance industry.
Return vs Market: Insufficient data to determine how DIIS.F performed against the US Market.
Shareholder returns
| DIIS.F | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.6% | -0.5% | 0.09% |
| 30 Day | -11.5% | -0.9% | -1.6% |
| 90 Day | n/a | 4.1% | 7.9% |
| 1 Year | n/a | -13.6%-15.9% | 15.2%12.6% |
| 3 Year | -18.0%-18.0% | 2.9%-5.0% | 38.9%29.6% |
| 5 Year | n/a | 42.0%24.2% | 87.6%66.5% |
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?
25.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DIIS.F ($3.96) is trading below our estimate of fair value ($5.31)
Significantly Below Fair Value: DIIS.F is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DIIS.F is good value based on its PE Ratio (10.9x) compared to the US Insurance industry average (14.3x).
PE vs Market: DIIS.F is good value based on its PE Ratio (10.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: DIIS.F is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: DIIS.F is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (0.8x).
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?
7.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DIIS.F's forecast earnings growth (7.4% per year) is above the savings rate (2.2%).
Earnings vs Market: DIIS.F's earnings (7.4% per year) are forecast to grow slower than the US market (23.2% per year).
High Growth Earnings: DIIS.F's earnings are forecast to grow, but not significantly.
Revenue vs Market: DIIS.F's revenue (2.5% per year) is forecast to grow slower than the US market (9.7% per year).
High Growth Revenue: DIIS.F's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DIIS.F's Return on Equity is forecast to be low in 3 years time (19.7%).
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: DIIS.F has high quality earnings.
Growing Profit Margin: DIIS.F's current net profit margins (11.8%) are lower than last year (12.9%).
Past Earnings Growth Analysis
Earnings Trend: DIIS.F's earnings have grown by 2.5% per year over the past 5 years.
Accelerating Growth: DIIS.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: DIIS.F had negative earnings growth (-10.5%) over the past year, making it difficult to compare to the Insurance industry average (-3.3%).
Return on Equity
High ROE: DIIS.F'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: DIIS.F's short term assets (£3.6B) do not cover its short term liabilities (£5.6B).
Long Term Liabilities: DIIS.F's short term assets (£3.6B) exceed its long term liabilities (£831.6M).
Debt to Equity History and Analysis
Debt Level: DIIS.F's debt to equity ratio (18.2%) is considered satisfactory.
Reducing Debt: DIIS.F's debt to equity ratio has reduced from 20% to 18.2% over the past 5 years.
Debt Coverage: DIIS.F's debt is well covered by operating cash flow (82.7%).
Interest Coverage: DIIS.F'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?
4.82%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DIIS.F's dividend (4.82%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: DIIS.F's dividend (4.82%) is in the top 25% of dividend payers in the US market (4.68%)
Stability and Growth of Payments
Stable Dividend: DIIS.F has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: DIIS.F's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.2%), DIIS.F's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DIIS.F's dividends in 3 years are forecast to be covered by earnings (77% 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)
1.33yrs
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 serv ...
CEO Compensation Analysis
Compensation vs Market: Penny's total compensation ($USD2.46M) is below average for companies of similar size in the US market ($USD7.33M).
Compensation vs Earnings: Penny's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.33yrs | UK£1.90m | 0.049% £ 2.6m | |
| CFO & Executive Director | 0.92yr | UK£927.00k | no data | |
| Chief Operating Officer | 4.25yrs | no data | 0.0021% £ 114.8k | |
| Investor Relations Director | no data | no data | no data | |
| General Counsel | 9.67yrs | no data | 0.0044% £ 236.0k | |
| Managing Director of Marketing & Digital | 1.17yrs | no data | no data | |
| Chief People Officer | 0.42yr | no data | no data | |
| Chief Strategy Officer | 0.50yr | no data | no data | |
| Managing Director of Commercial | 11.67yrs | no data | 0.0024% £ 126.6k | |
| Chief Risk Officer | 8.5yrs | no data | 0.0029% £ 154.6k | |
| Head of Financial Communications | no data | no data | no data | |
| Head of External Affairs | no data | no data | no data |
1.3yrs
Average Tenure
51.5yo
Average Age
Experienced Management: DIIS.F's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1.33yrs | UK£1.90m | 0.049% £ 2.6m | |
| CFO & Executive Director | 0.92yr | UK£927.00k | no data | |
| Independent Non-Executive Director | 6.08yrs | UK£95.00k | 0.00037% £ 19.9k | |
| Independent Non-Executive Chairman | 0.083yr | UK£117.00k | 0.00074% £ 39.9k | |
| Senior Independent Non-Executive Director | 4.67yrs | UK£120.10k | no data | |
| Independent Non-Executive Director | 2yrs | UK£99.00k | no data | |
| Independent Non-Executive Director | 2.5yrs | UK£101.10k | no data | |
| Independent Non-Executive Director | 8.75yrs | UK£131.00k | 0.00082% £ 44.2k | |
| Independent Non-Executive Director | 2.5yrs | UK£134.00k | 0.00022% £ 11.9k |
2.5yrs
Average Tenure
56yo
Average Age
Experienced Board: DIIS.F's board of directors are not considered experienced ( 2.5 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: DIIS.F insiders have only sold shares in the past 3 months.
Recent Insider Transactions
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: DIIS.F
- Exchange: OTCPK
- Founded: 1985
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: UK£4.159b
- Listing Market Cap: UK£5.388b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DLG | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Oct 2012 |
| DLGL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Oct 2012 |
| DIIS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Oct 2012 |
| D1LN | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Oct 2012 |
| DIIS.Y | OTCPK (Pink Sheets LLC) | ADR NEW | US | USD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/09/20 06:09 |
| End of Day Share Price | 2020/09/18 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.