The Group aims to manage its capital efficiently and generate long-term sustainable value for shareholders, while balancing operational, regulatory, rating agency and policyholder requirements. The Group aims to grow its regular dividend in line with business growth.
Where the Board believes that the Group has capital which is expected to be surplus to the Group's requirements for a prolonged period, it would intend to return any surplus to shareholders. In normal circumstances, the Board expects that a capital coverage ratio around the middle of its risk appetite range of 140% to 180% of the Group’s solvency capital requirement (“SCR”) would be appropriate and it will therefore take this into account when considering the potential for special distributions.
In the normal course of events the Board will consider whether or not it is appropriate to distribute any surplus capital to shareholders once a year, alongside the full year results. The Group expects that one-third of the annual dividend will generally be paid in the third quarter as an interim dividend, and two-thirds will be paid as a final dividend in the second quarter of the following year. The Board may revise the dividend policy from time to time. The Company may consider a special dividend and/or a repurchase of its own shares to distribute surplus capital to shareholders.
2018 Dividend payments
The Company paid an interim dividend of 7.0 pence per share in September 2018 for the year ended 31 December 2018, an increase of 2.9% on the interim dividend for the year ended 31 December 2017 (6.8 pence).
Dividend payment history
* For 2014, the Board resolved to pay an interim dividend in lieu of a final dividend.
For further information on dividends, please refer to the FAQs section.
Dividend Reinvestment Plan
Direct Line Insurance Group plc offers a Dividend Reinvestment Plan (‘DRIP’) that gives shareholders the opportunity to use their cash dividends to buy Direct Line Insurance Group plc shares in the market.
Easy to use
- New shares are bought on or after the dividend payment date and added to your holding
- After your shares are purchased, you’ll receive a share purchase advice and share certificate (unless you hold your shares in uncertificated form in CREST in which case you should consult your CREST sponsor who will be able to take the appropriate action on your behalf)
- All charges are detailed in the Terms and Conditions of the plan
Easy to apply
You can sign up to the DRIP via the Investor Centre, our registrar’s secure shareholder website at: www.computershare.co.uk/directlinedividendinformation
If you already use the Investor Centre, please follow these easy steps to elect for the DRIP:
1. Sign in and click ‘Update my details’
2. Select ‘Dividend Plans’ and click ‘amend’ to amend your ‘election choices’
3. Read and agree to the DRIP Terms and Conditions; and
4. Follow the on-screen instructions.
If you are new to the Investor Centre, please follow these steps to enroll and elect for the DRIP:
2. Click on ‘Register’
3. Input the following information as required:
- your Shareholder Reference Number (‘SRN’) which is a ten digit number beginning with ‘C’ that appears on your share certificate or other correspondence from us
- your postcode
- your email address
4. Select a user name (ID) and a password
5. Read and agree to the Terms and Conditions
6. When you receive your activation code and become a user of the Investor Centre, follow steps 1 – 4 above to elect for the DRIP
If you don’t have access to the internet, you can call 0870 873 5880 to request a DRIP election form.
Where this has been received in a country where the provision of the DRIP would be contrary to local laws or regulations, details of this service should be treated as being for information only.