Skip to main content

Admiral Group 2021 half year results trading update

Written by Customer Service on . Posted in Public Companies.

Admiral Group plc

12 July 2021

Admiral Group 2021 half year results trading update

Based on preliminary figures, Admiral Group (“Admiral” or “The Group”) anticipates a higher than expected Group profit before tax for the first half of 2021 in the range of £450 to £500 million (continuing operations)1.

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. There has been no change to Admiral’s prudent approach to claims reserving.

Further, motor claims frequency in 2021 to date has been lower than expected due to extended lockdown restrictions resulting in a favourable current period loss ratio, despite the significant reductions in Admiral’s premium rates over the past twelve months, which followed the £110 million of premium refunded to customers in May 2020.

On the basis of these preliminary results and a very strong solvency position, the proposed 2021 interim dividend is expected to be in the range of 110 to 125 pence per share.

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.

The sale of the Penguin Portals comparison businesses was completed on 30 April 2021. Of the net proceeds from the transaction of approximately £460 million, Admiral expects to return £400 million to shareholders in the form of special dividends phased over 2021 and 2022. The first payment will be made with the interim 2021 dividend referred to above. Further detail will be provided with the Group’s half year results announcement in August.

Figures shown in this release are preliminary and subject to completion of internal governance processes and external audit review. Admiral will publish its 2021 half year results on Wednesday 11 August 2021.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.

For more information, please contact:

Admiral Group plc
Marisja Kocznur                marisja.kocznur@admiralgroup.co.uk
Investors & Analysts

FTI Consulting  
Edward Berry                +44 (0) 20 3727 1046
Tom Blackwell                +44 (0) 20 3727 1051

[1] Excluding profit on disposal from the Penguin Portal sale which completed on 30 April 2021

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.