14th Aug 2025 09:40
(Alliance News) - Admiral Group PLC on Thursday reported "excellent" first half results, led by strong growth in its motor insurance business where profits leapt 56% year-on-year.
The Cardiff-based insurer said pretax profit rose 67% to GBP516.1 million in the six months to June 30 from GBP309.8 million the year prior.
Pretax profit from continuing operations jumped 69% to GBP521.0 million from GBP307.6 million, beating GBP508 million Visible Alpha consensus.
The FTSE 100 listing said turnover was flat at GBP3.10 billion, but that insurance revenue grew 18% to GBP2.47 billion from GBP2.09 billion.
Earnings per share jumped 69% to 130.9 pence from 77.5p a year ago, ahead of 123.5p VA consensus.
The return on equity improved to 57% from 45%, while the solvency ratio, post-dividend, declined to 194% from 198%.
Reflecting the earnings progress, Admiral increased the half-year dividend by 62% to 115.0p per share from 71.0p, ahead of the 105.9p expected by VA consensus. This includes a special dividend of 29.1p.
Admiral's dividend policy is to pay 65% of post-tax profits as a normal dividend and to pay a further special dividend comprising earnings not required to be held for solvency, buffers or purchasing shares for the group's employee share plans.
In response, shares in Admiral rose 5.9% to 3,566.00 pence each in London on Thursday morning. It was the best performing stock on the FTSE 100 which itself was down 0.1%.
"We have delivered another excellent first half with strong execution across all strategic objectives," commented Chief Executive Milena Mondini de Focatiis.
The CEO noted car insurance prices have been falling for the last 18 months due to softer inflation but added a "disciplined" approach to pricing and growth means Admiral reported a "great performance across the board".
Admiral said UK Motor Insurance profit increased by 56% to GBP559 million from GBP359 million a year ago, with "higher insurance revenue and a notably improved insurance service margin".
The Motor Insurance service margin increased to 25.5% from 17.4% a year ago, and from 23.0% at the end of 2024.
Claims inflation continues to show signs of stabilising, Admiral said, although it noted there is still "uncertainty" within motor claims across the market arising from inflation, and future developments relating to both tariff reforms, and regulatory developments.
The Admiral CEO said: "I'm very excited to see our businesses go from strength to strength. I'm confident in our fundamentals and adaptability which mean that we are well-placed for further success, delivering even more value for our shareholders and our growing customer base."
By Jeremy Cutler, Alliance News reporter
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