UK's Admiral Group falls; Peel Hunt downgrades to 'sell'

Admiral

05/09/2025 09:13

** Insurer Admiral Group ADML.L falls 1.74% to 3,384p

** Peel Hunt downgrades to "sell" from "reduce"

** Says UK motor insurers' underwriting margins starting to deteriorate, albeit from high base, as rates continue to soften

** Adds co gained considerable share in UK motor market in last two years; notes it'll be interesting to see how far it will go to protect this

** Believes discipline needed across UK motor market in H2 FY25 to avoid sharp drop in FY26 underwriting margins

** Raises PT to 2,350p from 2,270p; new PT a Street-low, represents 31.7% discount to last close

** Stock rated "buy" on avg; median PT is 3,575p, per data compiled by LSEG

** As of last close, ADML gains ~30.3% this year

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))