ii view: Admiral still hopeful of better second half

First-half results to 30 June

• Turnover unchanged at £3.1 billion
• Pre-tax profit down 18% to £429 million
• Earnings down 18% to 109p per share
• Interim dividend of 70.5p per share, down from 115p last year (2 October 2026)
• Share buyback of £45 million, down from £88 million in H1 2025
• Solvency ratio, or capital cushion down 4% from a year ago to 190%

Chief executive Milena Mondini de Focatiis said:

“The strong fundamentals of our business remain unchanged. I am confident that our relentless focus on our growing customer base, and being efficient and adaptable mean that we are well positioned to deliver on our growth ambitions.”

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ii round-up:

Insurer Admiral Group (LSE:ADM) today detailed first-half profits to late June that marginally missed City forecasts but the company maintained hopes for stronger profits during the second half.

UK motoring profits down 18% year-over-year pushed group-wide pre-tax profits down by the same amount to £429 million. Analysts had expected £435 million. An early move to raise premiums ahead of expected rising inflation is forecast to aid profitability over the next six months, potentially leaving annual profit little changed from 2025.

Shares in the FTSE 100 company rose 5% in UK trading having come into these latest results up by close to fifth so far in 2026. Fellow general and life assurer Aviva (LSE:AV.) is up by 4%. The FTSE 100 index has gained almsot a tenth year-to-date.

Admiral now serves over 12 million customers across the UK, France, Italy and Spain. UK home profit fell just 1% to £25 million, with improved underwriting offset by higher reinsurance charges.

A profit of £3.2 million for UK travel and pet insurance improved from a loss of £0.1 million a year ago, aided by increasing customer numbers.

Similarly, European profits of £17.2 million compares with a loss of £0.6 million in H1 2025, helped by increased motoring related revenues across France and Spain.

As a result of lower profits, an interim dividend of 70.5p per share payable to eligible shareholders on 2 October, is down from 115p a year ago. A share buyback for the period of £45 million was cut from £88 million in H1 2025.

Broker UBS reiterated its ‘buy’ stance on the shares post the results.

ii view:

Founded in 1993, Admiral today employs over 14,000 people. Headquartered in Cardiff, Group brands include Admiral in the UK, Conte in Italy and Balumba in Spain. The insurer previously completed its first significant acquisition, acquiring direct household and pet insurance renewal rights of the ‘More Than’ brand, as well as transferring staff from then owner Royal Sun Alliance.  

For investors, the many factors feeding into insurance claims including the weather and even climate change, cannot be forgotten. Acquisitions such as that for some of the ‘More Than’ business are not without risk. The group’s solvency ratio, although robust, is down 4% from a year ago to 190%, while competitors across the industry are not standing still.

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To the upside, Admiral has historically proven agile in its pricing and product offering, with annual 2025 profit at a new record. A diversity of business types includes a growing loans book for its Admiral Money business. The recent acquisition of Flock, a telemetry based digital fleet insurer, builds on its expertise in data and technology, while shareholder returns have totalled over £3 billion since the start of 2020.  

On balance, and despite continuing risks, the business and share price clearly have positive momentum, and a forecast dividend yield of close to 5% should keep income investors interested too.

Positives:

• Diversity of both product and geographical location
• Attractive dividend yield (not guaranteed)

Negatives:

• Events outside of management’s control like the weather can impact
• Tough economic backdrop

The average rating of stock market analysts:

Strong hold