FTSE 250-listed motor insurance firm Direct Line Insurance Group PLC (LSE:DLG)’s first-quarter results were given the thumbs up from analysts today.
Jefferies said the group is making “reassuring progress”, with estimated written margins maintained above 10% while motor margins “continue to develop in line with expectations”.
One downside, according to Jefferies, was the 1.8% dip in in-force policy count, “which is the only disappointing takeaway from the Q1 update in our view”.
Regardless, the investment bank gave the stock a buy rating with a 240p price target.
Peel Hunt’s price target is slightly lower at 230p, though the broker sees upside in the motor insurance sector to come.
“Overall, it appears that the UK Motor market has reached a pause, and we expect that the strong rate increases from 2023 will begin to yield results in 2024,” said Peel Hunt analysts.