Dividend policy
Capital management and dividend policy
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 pay a regular dividend of around 60% of Operating Profit after tax for Ongoing Operations.1
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 intends to return any surplus to shareholders.
The Group has a solvency risk appetite of 140% of the Group’s solvency capital requirement (“SCR”). In normal circumstances, the Board expects that a solvency coverage ratio of around 180% is appropriate and will take this into account when considering the potential for additional returns, alongside expectations for future capital requirements and other relevant factors. In the short term, the Group expects to maintain a solvency coverage ratio above this level.
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 previous annual regular dividend will be paid in the third quarter as an interim dividend, with the remaining regular dividend paid as a final dividend in the second quarter of the following year. The Company may consider a special dividend and/or a repurchase of its own shares to distribute surplus capital to shareholders.
The Board may revise the dividend policy from time to time.
1. Operating profit from ongoing operations after finance costs, coupon payments in respect of Tier 1 notes and tax at the standard rate.
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
Download the Dividend Reinvestment Plan Terms and Conditions.
Download the Dividend Reinvestment Plan Election Form.
Easy to apply
You can sign up to the DRIP via the Investor Centre, our registrar’s secure shareholder website at: www.investorcentre.co.uk/directline
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:
1. Visit www.investorcentre.co.uk/directline
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.