Admiral raises first-half profit outlook on lower motor injury calims

Insurance company Admiral raised its first-half profit forecast on Moinday as Covid-19 lockdowns resulted in fewer motor injury claims.

Source: Sharecast

The company said “unusually positive” development meant pre-tax profits would probably total £450m-500m for the first six months of the financial year - almost double the £286m it reported last year and well above analysts forecasts of about £230m - £270m.

It also guided for a dividend of 110 – 125p a share.

“The stronger result is due to unusually positive development in the cost of UK motor bodily injury claims from a number of prior underwriting years which has led to higher reserve releases and profit commission revenue,” Admiral said in a statement.

Lower-than-expected motor claims frequency in 2021 to date due to extended lockdown restrictions also resulted in a favourable current period loss ratio, despite significant reductions in premium rates over the past year after £110m in premiums refunded to customers in May 2020.

“It is not currently expected that the level of reserve releases and profit commission for the first half of 2021 will be repeated in the second half,” Admiral added.

Admiral also completed the sale of its Penguin Portals comparison business during the first half of the year, netting the company around £460m with shareholders to receive around £400m of the proceeds in the form of special dividends phased over 2021 and 2022.

Isin: GB00B02J6398
Exchange: London Stock Exchange
Sell:
2,228.00 p
Buy:
2,243.00 p
Change: -10.00 ( -0.45 %)
Date:
Prices delayed by at least 15 minutes
Chart not available

Compare our accounts

Whether you're looking for a Share Dealing Account or Share Dealing ISA, we've got an account to suit your needs.

Lloyds Bank is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Logo Web Financial Group

The information published on this website is accurate to the best of our knowledge. However, we do not assume any liability whatsoever for the accuracy and completeness of the information and any reliance you place on such information is at your own risk.

The information contained within this website is provided by Web Financial Group, a parent company of Digital Look, unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation.

This is a solution powered by Digital Look Ltd incorporating their prices, data, news, charts, fundamentals and investor tools on this site. Prices and trades are provided by Web Financial Group and are delayed by at least 15 minutes.

FE fundinfo Logo

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Broadridge Logo

The data provided on the website by Broadridge is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. Broadridge makes no assurances or warranties, expressed or implied, as to the accuracy, timeliness, fitness for purpose or availability of the mechanisms by which we receive, store and/or distribute the data. Any views and opinions made on this website do not represent those of Broadridge.

Factset Logo

Copyright © 2022 FactSet UK Limited. All rights reserved. Terms of use