The Lemon Fool

Financial highlights

- Direct own brands premium up 1.8% compared to 2017, driven by growth across all segments. Total Group premium reduced by 5.3% year on year, as a result of the exit from Nationwide and Sainsbury's6 Home partnerships.

- Operating profit decreased by £41.1 million compared to 2017, primarily due to reductions in prior-year reserve releases and investment return as expected. Operating profit included a £55 million benefit from moving to an assumed 0% Ogden discount rate (2017: £49 million benefit relating to Ogden).

- Demonstrating the value in the Group's diversified product base, current-year underwriting profitability was stable despite a reversal of the benign motor conditions in 2017. The expense ratio reduced to 23.4%.

- Profit before tax increased by 8.1% to £582.6 million (2017: £539.0 million) as the decrease in operating profit was more than offset by the non-repeat of finance costs in relation to the debt repurchased in 2017.

- Final ordinary dividend of 14.0 pence per share, an increase of 2.9% on 2017. Special dividend of 8.3 pence per share. Total dividends of 29.3 pence per share. (2017 total dividends of 35.4 pence per share including a special dividend of 15.0 pence per share).

- Strong capital position with solvency capital ratio of 170% (after proposed dividends) reflecting prudence given current political and economic uncertainties.

- Reiteration of financial targets for 2019 and over the medium term of achieving a combined operating ratio in the range of 93% to 95% normalised for weather. In 2019, targeting operating expenses below £700 million. Reiteration of ongoing target of achieving at least a 15% return on tangible equity.

And later;

The Board has recommended a final dividend of 14.0 pence per share (2017: 13.6 pence), an increase of 0.4 pence per share (2.9%), in line with business growth. This reflects the Board's continued confidence in the Group's earnings and the progress the business continued to make.

The Board has also declared a special dividend of 8.3 pence per share. After both dividends the solvency capital ratio will be 170% as at 31 December 2018.

Ricksure wrote:DLG have just declared a final dividend of 14p a share and a special dividend of 8.3p a share.

Sorry I do not have further infomation

idpickering wrote:I hold these, and up unti the recent rise of the share price, I was intending topping up. But for me they’re now a long term hold.
Ian.

blobby wrote:Hi Ian,

DLG are a stalwart of my HYP and have been for years. They seem to tick all the boxes for my HYP investments at the moment (yield, record of dividends, TNAV, market cap), unless there is something better in this sector?

blobby wrote:

idpickering wrote:I hold these, and up unti the recent rise of the share price, I was intending topping up. But for me they’re now a long term hold.
Ian.

Hi Ian,

DLG are a stalwart of my HYP and have been for years. They seem to tick all the boxes for my HYP investments at the moment (yield, record of dividends, TNAV, market cap), unless there is something better in this sector?

Ricksure wrote:Sorry I see Ian has posted all the info while my Indian internet was still trying to connect

kempiejon wrote:

blobby wrote:Hi Ian,

DLG are a stalwart of my HYP and have been for years. They seem to tick all the boxes for my HYP investments at the moment (yield, record of dividends, TNAV, market cap), unless there is something better in this sector?

Blobby, My bold, I agreed that these look a good prospect I prefer a 5 year history of rising dividends I might allow 4 years and forecast but DLG have only really just nudged into 5 year land for me recently. They'd not have passed my HYP selection criteria earlier than the past couple of years.