UK 12:10 Monday, 28 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
A kind reader who offers generous praise for some of my work thinks that my bearcast comments about the potential cash and shares bid by Ageas for Direct Line (DLG) are unduly bearish. As I am the first to admit my ignorance of the world of insurance, I publish the reader’s bull case below.
The last time I wrote on Direct Line Insurance Group (DLG) about ten months ago, I called it a “comedy” and therefore the c.30% share price fall since then does not surprise me. With the shares now a few percent above the all-time low of last month, has the story started to change in the still just over £2 billion market cap name?
Hello Share Shufflers. You must feel for poor folks who work in insurance call centres. They navigate all the questions and then their computers give a price that can double your renewal cost. So they try and tell you that their company gives better benefits if you claim, like a courtesy car. But what company doesn't arrange a courtesy car? And what firm differs from any other in the range of benefits? And yet the competition is so bruising, compounded by comparison websites, that only lowering the price will win the order. But some insurance companies are better than others at dealing with this severe profit-eater...
Direct Line Insurance (DLG) is a rather unusual company. It does not flog its policies on comparison websites. You would think this would reduce the size of premiums. But when I compared the cost of insuring my jalopy, admittedly some months ago, I found I got a few better offers from comparison sites...
