Report
Henry Heathfield, CFA
EUR 101.80 For Business Accounts Only

Direct Line operates a largely undifferentiated business model in a highly competitive U.K. market.

Direct Line Insurance Group is a pretty average U.K. personal lines insurer. Its primary lines are motor, home, rescue, and commercial, having puts its international operations into runoff in 2014. Direct Line is the largest U.K. personal lines insurer, with a market share of around 18%. Since its spinout from Royal Bank of Scotland, the business has just about made its cost of capital on average.We think U.K. personal lines is not a particularly attractive market, and the high prevalence and ra...
Underlying
Direct Line Insurance Group Plc

Direct Line Insurance Group is a personal and small business general insurer in the U.K. Co.'s principal activity is managing its investments in subsidiaries, providing loans to those subsidiaries, raising funds, and the receipt and payment of dividends. Co.'s segments are Motor, which consists of personal motor insurance together with the associated legal protection cover; Home, which consists of home insurance together with associated legal protection cover; Rescue and other personal lines, which consists of rescue products, and other personal lines insurance, including travel, pet and creditor; and Commercial, which consists of commercial insurance for small and medium-size entities.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Henry Heathfield, CFA

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