Trade the Direct Line share!

Analysis before buying or selling Direct Line shares

Trade the Direct Line share!
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If you are interested in the Direct Line share and would like to invest in the stock market in the near future, this article will provide you with all the information you need to base your analysis on. Indeed, we are going to present you here with useful data such as the precise activities of this company and its main sources of income, its most important competitors in this sector, its recent partnerships and its market quotation data. But we will start this article by helping you with your fundamental analysis of this stock with a summary of the elements you need to analyze in this regard.

Elements to consider before selling or buying Direct Line shares

Analysis N°1

In particular, insurance regulations and their possible changes will be taken into account in this analysis. Indeed, legislation has an importance and a definite influence on the growth possibilities of this company.

Analysis N°2

We will also follow the strategy implemented by the Direct Line Group to diversify its activities through the introduction of new products or services. This will enable it to win new customers or make existing customers profitable.

Analysis N°3

Similarly, transactions aimed at the growth of the company such as acquisitions or strategic partnerships will also have a strong influence on the share price. All announcements of this type will therefore be closely monitored.

Analysis N°4

Attention should also be paid to the publication of financial results by Direct Line with the annual and quarterly balance sheets and their evolution. These results can be compared with the objectives set out in the Group's strategic plans or with analysts' expectations.

Analysis N°5

Finally, it will of course also be necessary to monitor the competition in this sector and the news and results of similar companies likely to take market share from Direct Line.

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General presentation of Direct Line

In order to trade effectively on the Direct Line share price, you must have a thorough knowledge of the company and its activities. Indeed, by having a good vision of the main sources of income of this group and its organization, you will be able to detect more easily the elements that can influence its share price.

Direct Line Insurance Group is a UK company and more specifically a group in the insurance sector. This group organizes its activity around four main poles which generate more or less of its income and that is as follows:

  • Motor insurance activities represent the largest share of the Group's revenues with 43.4% of net earned premiums.
  • This is followed by home insurance activities, which generate 29.3% of these net premiums.
  • Commercial insurance activities come in third place with 15% of net earned premiums.
  • Finally, property and casualty and personal insurance activities represent 12.3% of the Group's net earned premiums.

While Direct Line had previously been active all over the world, in September 2014, the Group sold its international insurance business.

Analysis before buying or selling Direct Line shares
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The major competitors of Direct Line

To detect future movements in the Direct Line share price, you will also need to be familiar with the company's direct competitors. Here are the main ones:


This company is also an insurance group that operates in 14 different countries around the world and is one of the largest in the industry in the UK. It is also one of the world leaders in the sector.

Prudential Insurance Company of America

this American company also offers financial and insurance products and services worldwide. It operates in more than 30 countries, including the United Kingdom, and is therefore a competitor of Direct Line.

Admiral Group

Finally, Admiral Group is another British insurance company, this time specialising in motor insurance and based in Wales. It is also listed on the London Stock Exchange and is part of the FTSE 100 stock market index.

The major partners of Direct Line

The Direct Line Group has also sometimes set up strategic partnerships with other companies in order to boost its growth or to stand out from the competition. Here is a concrete example:

Saatchi & Saatchi

Recently, Direct Line collaborated with the company Saatchi & Saatchi in the development of a prototype drone called Fleetlights, which is designed to light the way for people who are afraid of the dark. This device works with a smartphone application and uses the GPS of the device to locate the user and the drone follows him to light his way. The company Saatchi & Saatchi was responsible for creating the campaign to promote this solution in the UK.

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Frequently Asked Questions

Who are Direct Line's largest shareholders?

Currently, the largest shareholders of Direct Line are BlackRock Investment Management with 5.26%, Artemis Investment Management with 4.81%, T Row Price Associates with 4.52%, The Vanguard Group with 3.11%, APG Asset Management with 2.99%, Artisan Partners with 2.43%, Legal & general Investment management with 2.35%, BlackRock Fund Advisors with 2.20%, Franklin Templeton Institutional with 1.86% and Aberdeen Asset Investments with 1.83%.

Which subsidiaries are owned by Direct Line Insurance?

The Direct Line Insurance Group operates through various subsidiaries, a complete list of which can be found here. These are DLG Legal Services, DLG Auto Services, Darwin, DLG Partnerships, The National Insurance and Guarantee Corporation Limited, Privilege, Green Flag, Churchill Insurance Company, Direct Line and Direct Line for business.

What stock market index is Direct Line Insurance stock part of?

Direct Line Insurance's share price is quoted on the Main Market of the London Stock Exchange. But that's not all. The company is also part of the composition of the national benchmark stock market index in the United Kingdom, the FTSE 100, also known as the Footsie. This means that Delta Line Insurance is currently one of the 100 largest market capitalizations in this market.

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