Speaking to Portfolio Adviser, Moore said the impact of LASPO – rules that triggered an industry price war – hit shares but what investors had missed was that claims have been coming down.
Moreover, Moore said that Direct Line, which floated in September, has “cards up its sleeve” like action on cost. As a result, he is expecting positive news on the dividends front.
Elsewhere, the shrewd manager also added to his position in Beazley, which Moore first bought into in September, snapping up what he dubbed a "big position" in the stock.
Moore said the sell-off in insurers was triggered over fears of overcapacity in the underwriting markets and the effect on pricing. Moore said he liked the stock, however, because Beazley is a "specialist business that is hard to replicate."
Funding his purchases, the manager moved to take profits in Restaurant Group.
He explained: "The consensus is the UK consumer is recovering, but it means some stocks are priced pretty aggressively. The Restaurant Group remains a good, well run business, but at 19x earnings it was time to sell out."
Moore has also been gradually reducing his exposure to Cineworld. He still likes the stock, but said that the good news had now been priced in.
