LSE:DLG (Direct Line Insurance Group plc)
About DLG
Direct Line Insurance Group Plc is a multi-line insurance company based in the United Kingdom. Unlike its competition, the firm focuses primarily on personal insurance products. This includes car, home, pet, life, travel and rescue insurance. However, it does also cater products to small- & medium-sized businesses.
The company operates under several different brands, including Direct Line, Churchill, Privilege and Darwin. The group has also formed numerous partnerships to extend its addressable market. Its list of partners includes Starling Bank, Nationwide, NatWest, Volkswagen Financial Services, Sainsbury's Bank and the Royal Bank of Scotland.
Despite the diversity of its financial products, personal motor insurance is responsible for almost half of its gross written premium, with personal home and commercial insurance being the next biggest contributors.
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Frequently Asked Questions
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The firm’s diverse set of product offerings makes it an ideal one-stop-shop solution for prospective insurance purchasers. And also provides ample opportunities to upsell its other offerings to existing customers.
However, the bulk of income originates from motor insurance which is notoriously difficult to succeed in. After all, the payouts are high, and accidents are frequent. Sudden spikes in insurance claims could compromise the bottom line, causing the DLG share price to tumble. These risks need to be considered before making an investment decision.
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Yes. Direct Line Insurance shares pay a cash dividend at an average 110% payout ratio. One dividend payment was cancelled in early 2020 due to the pandemic but was resumed as normal in 2021. The stock has eight years of consecutive dividend growth.
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Direct Line Insurance shares pay out a dividend twice a year, in April and August.
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Direct Line Insurance shares are listed on the London Stock Exchange. They can be bought from any investment account that provides access to this exchange platform.