UK's Admiral H1 profit falls 18%, dividend down 39%
UK's Admiral H1 profit falls 18%, dividend down 39%
Overview
UK insurer's H1 turnover flat, profit before tax down 18% year-on-year
Earnings per share fell 18% as lower premiums and higher reinsurance charges weighed on profits
Company declared 70.5p interim dividend, down 39%, and £45 mln share buyback
Outlook
Admiral says it is pricing for long-term sustainable growth amid challenging market conditions
Admiral says continued investment in technology and people to enhance customer experience
Result Drivers
UK MOTOR PROFIT DECLINE - Lower earned premiums from prior rate reductions and higher quota share reinsurance charges reduced UK Motor profit
BENIGN WEATHER IMPACT - UK Household segment benefited from lower weather-related claims, supporting profit
Company press release: ID:nGNE4WF8Jt
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Turnover |
| GBP 3.11 bln |
|
H1 Dividend |
| GBP 0.71 |
|
H1 Pretax Profit |
| GBP 429.20 mln |
|
H1 Return on Equity |
| 45.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for Admiral Group PLC is GBp3,650.00, about 1.5% below its August 5 closing price of GBp3,706.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago
Reuters Recommended Reads
Aug 5 - British insurer L&G's half-year profit tops analyst forecasts
Aug 5 - UK's Hiscox lifts annual retail growth forecast
Aug 5 - UK's Beazley H1 pretax profit drops hurt by weak specialty insurance market, geopolitical uncertainty
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)