Skip to Content

Direct Line Insurance Group PLC DLG

Morningstar Rating
GBX 198.30 +2.60 (1.33%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Ageas Announced Termination of Interest in Making Offer for Direct Line

On March 22 Ageas announced it was no longer interested in making an offer for Direct Line. This follows the announcement of Direct Lines’ results last week where a new performance plan was laid out and confidence in the future value of the business was clearly communicated. This effectively raised the hurdle over which Ageas would need to demonstrate value accretion to both its own shareholders and those of Direct Line. We maintain our fair value estimates and no-moat ratings.

Price vs Fair Value

DLG is trading at a 16% discount.
Price
GBX 185.40
Fair Value
GBX 562.00
Uncertainty
High
1-Star Price
GBX 267.00
5-Star Price
GBX 244.00
Economic Moat
Nzzq
Capital Allocation
Xvnvzbdrf

Bulls Say, Bears Say

Bulls

Direct Line continues to evolve away from a model of distribution partners.

Bears

Direct Line has traditionally sold personal lines insurance to older and wealthier demographics.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if DLG is a good fit for your portfolio.

News

Trading Information

Previous Close Price
GBX 195.70
Day Range
GBX 196.00199.85
52-Week Range
GBX 132.11240.10
Bid/Ask
GBX 198.10 / GBX 198.35
Market Cap
GBX 257.33 Bil
Volume/Avg
8.1 Mil / 8.1 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
0.67
Dividend Yield (Trailing)
Dividend Yield (Forward)
4.09%
Total Yield
0.40%

Company Profile

While Direct Line is one of the more focused personal lines insurers that we cover in Europe, it is still quite diversified. The business sells insurance under four divisions: personal lines motor, personal lines home, rescue and other personal lines, and commercial. Rescue and other personal lines includes rescue, travel and pet insurance. Commercial insurance is sold to small businesses. Direct Line only sells insurance in the United Kingdom. Its personal motor insurance division typically accounts for around 60% of total group gross written premium and the personal home insurance unit typically sells around 20%. Rescue and other personal lines accounts for around 10% and commercial insurance accounts for around 10%.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Mid Value
Total Number of Employees
10,131

Competitors

Valuation

Metric
DLG
AXAHY
ADM
Price/Earnings (Normalized)
10.5725.89
Price/Book Value
1.041.539.25
Price/Sales
0.670.913.34
Price/Cash Flow
6.59102.1945.56
Price/Earnings
DLG
AXAHY
ADM

Financial Strength

Metric
DLG
AXAHY
ADM
Quick Ratio
Current Ratio
Interest Coverage
−6.8815.5935.29
Quick Ratio
No chart available

Profitability

Metric
DLG
AXAHY
ADM
Return on Assets (Normalized)
−2.59%1.19%5.04%
Return on Equity (Normalized)
−8.92%16.11%40.74%
Return on Invested Capital (Normalized)
−7.21%6.80%16.38%
Return on Assets
DLG
AXAHY
ADM
See how this stock stacks up to its competitors with Morningstar Investor

Insurance - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BRK.B
Berkshire Hathaway Inc Class BGrytlcjwnLvz$901.5 Bil
BRK.A
Berkshire Hathaway Inc Class ADmnbhrctkKrszk$901.5 Bil
ALIZY
Allianz SE ADRLmqgcsqcnvFdcn$117.8 Bil
AXAHY
AXA SA ADRXnwjfyhzLcsdx$83.7 Bil
ZURVY
Zurich Insurance Group AG ADRMzbljrgrnmZklsch$77.3 Bil
AIG
American International Group IncFgnwkxzdGxhf$53.3 Bil
SLF
Sun Life Financial IncPlzcwclHrx$31.7 Bil
AVVIY
Aviva PLC ADRPlkrdsvczVtjc$17.1 Bil
AEG
Aegon Ltd ADRZchrjvzwyNssjb$10.8 Bil
AGESY
Ageas SA/ NV ADRDpmMzmvq$8.5 Bil

Sponsor Center