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Direct Line Insurance Group

BATS-CHIXE:DLGL
Snowflake Description

Undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DLGL
BATS-CHIXE
£4B
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 127 days ago. More info.


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DLGL Share Price and Events
7 Day Returns
-3.8%
BATS-CHIXE:DLGL
-3.2%
GB Insurance
-2.5%
GB Market
1 Year Returns
-4.1%
BATS-CHIXE:DLGL
-3.8%
GB Insurance
5.3%
GB Market
DLGL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Direct Line Insurance Group (DLGL) -3.8% 7.4% 5.5% -4.1% -16.6% 3.1%
GB Insurance -3.2% -2.2% 1.6% -3.8% -10.3% -2.9%
GB Market -2.5% -1.3% 0.9% 5.3% 4.1% 5.1%
1 Year Return vs Industry and Market
  • DLGL matched the Insurance industry (-3.8%) over the past year.
  • DLGL underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 5.3% over the past year.
Price Volatility
DLGL
Industry
5yr Volatility vs Market

DLGL 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.

BATS-CHIXE:DLGL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 11 analysts.
= Stable Book Value * Return on Equity
= £1.89 * 15.8%
£0.30
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. £1.89
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

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 BATS-CHIXE:DLGL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.66
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.662 (1 + (1- 19%) (11.77%))
0.871
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.871 * 6.07%)
5.82%

Discounted Cash Flow Calculation for BATS-CHIXE:DLGL 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.

BATS-CHIXE:DLGL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (15.8% – 5.82%) * £1.89)
£0.19
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.19 / (5.82% - 0.53%)
£3.57
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £1.89 + £3.57
£5.46
BATS-CHIXE:DLGL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BATS-CHIXE:DLGL represents 1.001x of LSE:DLG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.001x
Value per Share
(Listing Adjusted, GBP)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 5.46 x 1.001
£5.46
Value per share (GBP) From above. £5.46
Current discount Discount to share price of £2.99
= -1 x (£2.99 - £5.46) / £5.46
45.4%

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
45%
Share price is £2.99 vs Future cash flow value of £5.46
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, and 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
BATS-CHIXE:DLGL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in GBP £0.32
LSE:DLG Share Price ** LSE (2019-12-04) in GBP £2.98
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 17 Publicly-Listed Insurance Companies 12.89x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 752 Publicly-Listed Companies 17.14x

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

** Primary Listing of Direct Line Insurance Group.

BATS-CHIXE:DLGL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 2.98 ÷ 0.32

9.46x

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
BATS-CHIXE:DLGL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
2.5%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 17 Publicly-Listed Insurance Companies 1.34x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 562 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

BATS-CHIXE:DLGL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.46x ÷ 2.5%

3.74x

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

  • Direct Line Insurance Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Direct Line Insurance Group's assets?
Raw Data
BATS-CHIXE:DLGL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in GBP £2.10
LSE:DLG Share Price * LSE (2019-12-04) in GBP £2.98
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 20 Publicly-Listed Insurance Companies 1.71x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,311 Publicly-Listed Companies 1.53x
BATS-CHIXE:DLGL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 2.98 ÷ 2.10

1.42x

* 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 5/6, 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.

DLGL 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
2.5%
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 growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Direct Line Insurance Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Direct Line Insurance Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
BATS-CHIXE:DLGL Future Growth Rates Data Sources
Data Point Source Value (per year)
BATS-CHIXE:DLGL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 2.5%
BATS-CHIXE:DLGL 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 6.5%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average -0.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 12.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*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
BATS-CHIXE:DLGL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 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.
BATS-CHIXE:DLGL Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,222 433 2
2022-12-31 3,191 408 3
2021-12-31 3,097 408 11
2020-12-31 3,031 359 12
2019-12-31 3,001 382 11
2019-12-05
BATS-CHIXE:DLGL Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-06-30 3,335 779 431
2019-03-31 3,377 626 444
2018-12-31 3,420 472 457
2018-09-30 3,453 500 422
2018-06-30 3,486 517 388
2018-03-31 3,482 532 411
2017-12-31 3,478 546 434
2017-09-30 3,440 545 376
2017-06-30 3,403 545 318
2017-03-31 3,361 704 299
2016-12-31 3,318 862 279
2016-09-30 3,290 766 334

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Direct Line Insurance Group's earnings are expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
  • Direct Line Insurance Group's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
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
BATS-CHIXE:DLGL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 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 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:DLGL Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.30 0.30 0.30 1.00
2022-12-31 0.29 0.30 0.28 2.00
2021-12-31 0.28 0.30 0.25 12.00
2020-12-31 0.26 0.35 0.19 17.00
2019-12-31 0.27 0.30 0.25 17.00
2019-12-05
BATS-CHIXE:DLGL Past Financials Data
Date (Data in GBP Millions) EPS *
2019-06-30 0.32
2019-03-31 0.32
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

*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 1/6, 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.

DLGL 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 (11% vs 3.6%)
  • Direct Line Insurance Group's earnings growth has not exceeded the GB Insurance industry average in the past year (11% vs 21.9%).
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 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BATS-CHIXE:DLGL Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 3,334.50 430.90 704.60
2019-03-31 3,377.15 444.00 712.65
2018-12-31 3,419.80 457.10 720.70
2018-09-30 3,452.95 422.25 725.25
2018-06-30 3,486.10 388.20 731.80
2018-03-31 3,481.85 411.10 734.65
2017-12-31 3,477.60 434.00 737.50
2017-09-30 3,440.10 376.20 733.95
2017-06-30 3,402.60 318.40 730.40
2017-03-31 3,360.50 298.60 725.30
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

*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 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.

DLGL 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 5 months ago.

BATS-CHIXE:DLGL Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 2,876.80 317.00 1,139.60
2019-03-31 2,876.80 317.00 1,139.60
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
  • Direct Line Insurance Group's level of debt (11%) 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 (20.4% vs 11% today).
  • Debt is well covered by operating cash flow (245.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 29.5x 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.

DLGL 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
9.82%
Current annual income from Direct Line Insurance Group dividends. Estimated to be 8.28% next year.
If you bought £2,000 of Direct Line Insurance Group shares you are expected to receive £196 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 (1.97%).
  • Direct Line Insurance Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.29%).
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
BATS-CHIXE:DLGL 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 19 Stocks 5.2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 679 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
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 5.3%

Industry and Market average data is calculated daily.

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

BATS-CHIXE:DLGL Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.23 2.00
2022-12-31 0.23 2.00
2021-12-31 0.25 15.00
2020-12-31 0.24 17.00
2019-12-31 0.25 17.00
2019-12-05
BATS-CHIXE:DLGL Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-02 0.293 9.529
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 7 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 (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x 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 1.1%) - 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 4/6, see the detailed checks below.


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

DLGL 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
Penny James
COMPENSATION £3,920,000
AGE 50
TENURE AS CEO 0.6 years
CEO Bio

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 serves as Chief Financial Officer of Direct Line Group Ltd. since March 1, 2018 and its Executive Director since November 1, 2017. She was the Chief Financial Officer of Direct Line Insurance Group Plc since March 1, 2018 until May 9, 2019. Mrs. James has been the Group Chief Risk Officer and Executive Director of Prudential Plc since September 1, 2015. Mrs. James served as Director of Group Finance at Prudential Plc from March 2011 to September 1, 2015. She has extensive insurance experience. She served as the Group Chief Financial Officer of Omega Insurance Holdings Limited until March 9, 2011 and also served as its Group Finance Director from May 1, 2007 to March 2010. Mrs. James joined Zurich Financial Services and served as its Chief Financial Officer of the UK General Insurance Division, with responsibility for the financial management of Zurich's commercial and personal lines businesses in the UK. Mrs. James was an Independent Non-Executive Director Admiral Group plc since January 1, 2015 until September 2017. She served as Director of Omega Insurance Holdings Inc. She served as a Director of Omega Insurance Holdings Limited from June 1, 2007 to March 9, 2011. She served as a Director of Omega Insurance Holdings Limited. She qualified as a Chartered Accountant with Coopers and Lybrand where she had a number of financial services clients. She is an Associate of the Institute of Chartered Accountants in England and Wales. Mrs. James holds an Honors degree in Statistics from the University of Bath.

CEO Compensation
  • Penny's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Penny's remuneration is higher than 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:

4.4
Average Tenure
50
Average Age
  • The tenure for the Direct Line Insurance Group management team is about average.
Management Team

Penny James

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
50
TENURE
0.6 yrs

Tim Harris

TITLE
CFO & Executive Director
AGE
50
TENURE
0.2 yrs

Steve Maddock

TITLE
Chief Operating Officer
TENURE
3.5 yrs

Andy Broadfield

TITLE
Director of Investor Relations & Capital

Humphrey Tomlinson

TITLE
General Counsel
TENURE
8.9 yrs

Mark Evans

TITLE
Managing Director of Marketing & Digital
TENURE
0.4 yrs

Simon Linares

TITLE
Group Human Resources Director
TENURE
5.3 yrs

Jon Greenwood

TITLE
Managing Director of Commercial
AGE
51
TENURE
10.9 yrs

José Vazquez

TITLE
Chief Risk Officer
TENURE
7.8 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:

2.5
Average Tenure
55.5
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
67
TENURE
7.7 yrs

Penny James

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
50
TENURE
2.1 yrs

Tim Harris

TITLE
CFO & Executive Director
AGE
50
TENURE
0.2 yrs

Jane Hanson

TITLE
Independent Non-Executive Director
COMPENSATION
£130K
AGE
52
TENURE
8 yrs

Danuta Gray

TITLE
Independent Non-Executive Director
COMPENSATION
£107K
AGE
61
TENURE
2.8 yrs

Gregor Stewart

TITLE
Independent Non-Executive Director
COMPENSATION
£92K
AGE
55
TENURE
1.8 yrs

Mark Gregory

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
56
TENURE
1.8 yrs

Richard Ward

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£120K
AGE
62
TENURE
3.9 yrs

Sebastian James

TITLE
Independent Non-Executive Director
COMPENSATION
£95K
AGE
53
TENURE
5.3 yrs

Fiona McBain

TITLE
Non-Executive Director
COMPENSATION
£27K
AGE
58
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
02. Aug 19 Sell Jonathan Greenwood Individual 02. Aug 19 02. Aug 19 -31,824 £3.20 £-101,785
02. Aug 19 Buy Jonathan Greenwood Individual 02. Aug 19 02. Aug 19 31,707 £3.19 £101,215
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
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.

DLGL News

Simply Wall St News

DLGL 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
DLGL
Exchange: BATS-CHIXE
Founded: 1985
£4,077,462,700
1,366,900,000
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: 2019/12/05 19:41
End of day share price update: 2019/12/04 00:00
Last estimates confirmation: 2019/12/04
Last earnings filing: 2019/07/31
Last earnings reported: 2019/06/30
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.