Direct Line Share News (DLG)

LONDON (Alliance News) - Stock prices in London are seen opening marginally lower on Tuesday, amid mixed trading in Asia, after China lowered its economic growth target for 2019 and warned of further turbulence in the global economy.In corporate news, insurer Direct Line cut its total dividend payout amid a mixed set of annual results, testing firm Intertek reported a strong 2018, and plant rental company Ashtead said its third quarter was buoyed by the North America region. IG futures indicate the FTSE 100 index is to open down 2.79 points at 7,131.60. The UK blue-chip index closed up 27.66 points, or 0.4%, at 7,134.39 on Monday.Chinese Premier Li Keqiang promised various reforms meant to stimulate China's economy as he set an economic growth target of 6.0% to 6.5% for 2019 at the opening of the annual parliamentary session on Tuesday.The range would mark China's slowest economic growth in almost three decades. Last year, the economy grew 6.6%, bogged down by a trade war with the US and rising government debt.Li warned of the "many difficulties" facing the economy as he addressed the 2,948 delegates gathered at the cavernous Great Hall of the People in Beijing. The parliamentary session, known as the National People's Congress, will last until March 15."Sentiment took a hit overnight when China lowered its target for economic growth and pledged further support for the economy. Asian markets retreated and European bourses are pointing to a softer start on the open. Whilst US-China trade deal talk buoyed stocks, at the start of the week, the positivity faded as investors look for concrete evidence on progress," said London Capital Group's Jasper Lawler.The Japanese Nikkei 225 index closed down 0.4%. In China, the Shanghai Composite closed up 0.4%, while the Hang Seng index in Hong Kong is flat.Direct Line Insurance Group said it delivered a "strong set" of annual results and performed well in a "highly competitive" market. For 2018, pretax profit was up 8.1% to GBP582.6 million from GBP539.0 million in 2017, but total income fell 1.4% to GBP3.44 billion from GBP3.44 billion the year before. Direct Line's gross written premiums were down 5.3% to GBP3.21 billion from GBP3.39 billion. The insurer's combined operating ratio increased to 91.7% from 90.8% last year, with a higher figure indicating less-profitable underwriting.Direct Line declared a total total dividend of 29.3 pence per share, down from 35.4 pence per share in 2017. But the company also declared a special dividend of 8.3p, down from 15p. This give a total payout for 2018 of 37.6p, down 25% from 50.4p in 2017."The group targets a combined operating ratio of 93% to 95% for 2019 and over the medium term, normalised for weather. Over time, the group expects to increase the contribution from current-year underwriting as the contribution from prior-year reserve releases reduces. The latter is predominantly as a result of increasing the level of reinsurance purchased by the group in recent years, which has reduced the risk profile of the group," Direct Line said. Testing and inspection company Intertek said 2018 was a year of robust growth and strong cash generation. For 2018, revenue was marginally higher at GBP2.80 billion from GBP2.77 billion in 2017 and pretax profit rose 2.8% to GBP404.5 million from GBP393.3 million the year before. The company reported free cash flow of GBP350.6 million, representing a 2.6% increase from last year driven by strong cash conversion.Intertek hiked its full-year dividend to 99.1p, up 39% from 71.3p in 2017. Looking ahead, Intertek added that it expects "good" organic revenue growth in 2019, with moderate margin expansion.Ashtead Group said it delivered a strong third-quarter performance, executing well on its strategy of organic growth supported by bolt-on acquisitions.For the nine months to January 31, revenue rose 24% to GBP1.14 billion from GBP916.1 million in the third quarter last year, and pretax profit was up 24% to GBP254.3 million from GBP205.1 million.Ashtead said it continues to experience strong end markets in North America and invested GBP1.29 billion in capital and a further GBP491 million on bolt-on acquisitions in the period which has added 112 locations and resulted in rental fleet growth of 18%. "Our business continues to perform well in supportive end markets. Accordingly, we expect full year results to be in line with our expectations and the board continues to look to the medium term with confidence," said Chief Executive Geoff Drabble.British American Tobacco is to take a charge worth over GBP400 million related to its lost Quebec appeal, the company said.The Quebec Court of Appeal last Friday dismissed an appeal by three tobacco companies against a CAD15.6 billion judgement against them in class action lawsuits that have been running for some 20 years.Imperial Tobacco Canada, now believes the recoverability of this money is less than certain, so BAT will take a GBP436 million provision on its 2019 balance sheet.This will not, BAT stressed, impact its ratio of adjusted net debt to adjusted earnings before interest, tax, depreciation, and amortisation, and will also not hurt cash flow. Meanwhile, Chinese services activity slipped to a four-month low in February due to a marginal expansion of output.The Caixin Composite Purchasing Managers' Index softened to 50.7 in February from 50.9 at the start of 2019. The reading was the lowest reading in the past four months.Any score above 50 suggests expansion in activity.Elsewhere, activity in the Irish service sector saw a significant increase in February but sentiment fell to its lowest levels since May 2013, the latest AIB Ireland Services Purchasing Managers' Index data showed.The headline seasonally adjusted business activity index increased to 55.9 in February from 54.2 in January. Activity among Irish service providers has increased on a monthly basis since August 2012. The pound was quoted at USD1.3159 Tuesday, marginally lower than USD1.3175 at the London equities close Monday.UK sales growth eased in February as uncertainty around the UK's impending exit from the EU at the end of March hampered retail growth, the latest BRC-KPMG Retail Sales Monitor figures showed on Tuesday.Data covering the four weeks to February 23 showed total sales up 0.5% from a year before, below both the 3-month and 12-month averages of 0.9% and 1.2% growth respectively. This was after sales increased by 2.2% in January, the highest annual growth since June.The economic events calendar on Tuesday has services PMI readings from Italy, France, Germany the eurozone and UK at 0845 GMT, 0850 GMT, 0855 GMT, 0900 GMT and 0930 GMT respectively.Bank of England Governor Mark Carney will appear before the House of Lords select committee at 1535 GMT.In addition, the latest UK grocery market share figures from Kantar Worldpanel are due at 0800 GMT.