Direct Line Insurance Group PLC (DIISF)
OTC PINK OTC PINK Primary Summary
Selling Direct Line After A Bumpy 3-Year Investment
When I invested in Direct Line in 2022, I thought it looked like an attractive turnaround and I still think I was right. This investment was a bumpy ride to nowhere, and it's one of the main reasons why I no longer invest in turnarounds. Direct Line's equity, assets, earnings and dividends have all gone nowhere over the last ten years, giving the business a negative overall growth rate.
Direct Line: A Tale Of Dividend Cuts And Takeovers
As investments go, Direct Line has been a mixed bag. The shares initially fell more than 50% shortly after I'd bought them, and then rebounded by about 100% following a recent takeover offer from Aviva. Although I do think Direct Line has the makings of a high-quality business, in 2022, it was still in the throes of its post-RBS turnaround.
Direct Line Is Now An Interesting Value Play
Direct Line's recent operating performance has improved, showing progress in its turnaround program, despite past weak trends and high claims inflation. The company's focus on underwriting profitability and cost-cutting measures is expected to lead to a return to profitability and higher ROE by 2025. Direct Line's shares are undervalued, trading at 0.86x book value, making it an attractive value play with potential upside from future takeover interest.
Direct Line Insurance Group PLC Profile
| Insurance - Property & Casualty Industry | Financial Services Sector | Mr. Adam Charles Winslow CEO | OTC PINK Exchange | - ISIN |
| GB Country | 9,053 Employees | 4 Apr 2025 Last Dividend | 30 Jun 2015 Last Split | - IPO Date |
Overview
Direct Line Insurance Group plc is a leading provider of general insurance products and services within the United Kingdom. The company, initially founded in 1985, has its headquarters in Bromley, UK. Initially known as RBS Insurance Group Limited, it underwent a name change to Direct Line Insurance Group plc in February 2012, marking a significant milestone in its corporate history. It operates across different segments including Motor, Home, Rescue and Other Personal Lines, and Commercial, catering to a wide range of insurance needs. Direct Line sells its products directly to customers, through price comparison websites, over the phone, and via partnerships and brokers. The company boasts a portfolio of well-known brands such as Direct Line, Churchill, Privilege, Darwin, Green Flag, and others, each offering specialized insurance solutions.
Products and Services
- Motor Insurance: Covers cars, motorcycles, and other vehicles against damage or accidents, offering peace of mind for drivers.
- Home Insurance: Provides financial protection against risks to property, such as fire, theft, and natural disasters, ensuring homeowners and renters can safeguard their homes.
- Van and Landlord Insurance: Designed for commercial and rental property owners, this insurance provides coverage for vehicles used in business and properties rented out to tenants.
- Rescue Insurance: Offers roadside assistance and recovery services for drivers in the event of a vehicle breakdown.
- Pet Insurance: Provides pet owners with coverage for veterinary fees and other related costs, ensuring the health and well-being of their pets.
- Tradesperson and Business Insurance: Tailored insurance solutions for tradespeople and small to medium-sized enterprises, covering a range of business-specific risks.
- Creditor and Select Insurance: Financial protection products designed for creditors and select groups, offering a layer of security for financial undertakings.
- Travel Insurance: Covers individuals while traveling, offering protection against unforeseen events such as cancellations, medical expenses, and loss of belongings.
- Commercial Insurance for SMEs: Provides comprehensive business insurance for small and medium-sized enterprises, covering various aspects from liability to property damage.
- Additional Services: Includes management, motor accident vehicle repair, insurance intermediary, support and operational, legal, software development, and breakdown recovery services, enhancing the company’s insurance offerings.
Contact Information
