Company Reports

For the first half of 2026, Admiral has pared back growth in core UK motor, with a small decline in vehicles insured since the end of last year. That has come as the business looks to be incurring some half-on-half pressure in pricing, with the market looking like it is about to turn from soft.

Admiral is a rare example of an insurance company with a narrow moat.

On July 1, Admiral announced a partnership with Anna Money. The partnership aims to bring Admiral's insurance products to the over 100,000 customers of Anna Money as they grow their small and midsize businesses.

Admiral is a rare example of an insurance company with a narrow moat.

Admiral has long focused on driving operational excellence through data and technology, and 2025 results show a business that continues to do exactly that. Pretax profit of GBP 957.9 million is approaching what will be a very satisfying GBP 1 billion mark.

Earlier this month, Admiral announced it had completed the sale of its US business Elephant to JC Flowers, a US private equity business.

Admiral is a rare example of an insurance company with a narrow moat.

While looking at dividends for 2025, when we published our European Insurance Dividends report on June 30, we picked out Admiral, Munich Re, and Scor. We also highlighted Ageas as holding potential to outperform.

Admiral has reported very good results for the first half of 2025, delivering profit before tax of GBP 521 million. That looks good versus our full-year forecast of GBP 936.3 million, and this year could well be the first year that the business breaks the PBT mark of GBP 1 billion.

In our look into European dividends for companies and stocks we prefer for 2025 earnings, we like Admiral, Munich, and Scor, but we prefer Scor over Munich based on its price/fair value ratio. We also think there is potential in Ageas.

Admiral is a rare example of an insurance company with a narrow moat.

Admiral has agreed on the sale of its US motor business, Elephant, to JC Flowers, which is expected to close in the fourth quarter of this year subject to regulatory approval.

Admiral is a rare example of an insurance company with a narrow moat.

For full-year 2024 Admiral has delivered a convincing beat in its earnings predominantly driven by UK motor. The business has also delivered a sound underwriting improvement and solid growth in customer numbers—resounding results from a best-in-class motor insurer.

Admiral is a rare example of an insurance company with a narrow moat.

With the UK government’s announcement to bring together industry experts, consumer watchdogs, and regulators to tackle the rising cost of UK car insurance, the outlook deteriorated for insurance companies where a large part of their revenue is derived from UK motor insurance. The UK government aims to tackle what it cites as a 21% rise in motor insurance premiums since June 2022 as evidence that there is no longer a fair deal in the UK for consumers paying for motor insurance. Because motor insurance prices in the UK have risen faster than in other European countries, the UK government believes this stunts the economy and prevents economic growth. It has launched a new task force with the aim of driving down the cost of car insurance.

For the first half of 2024, we think Admiral has reported very good results. The business' total customer numbers have grown by 8.2% since the end of last year to 10.5 million. A lot of that growth has been driven by the UK motor business. The combination of higher customer numbers and rise in premiums the business established over the last few years has resulted in an over 30% rise in insurance revenue, and a similar rise in profit before tax. That profit before tax performance of GBP 309.8 million over the interim places the business well against our GBP 496.3 million full-year forecast. Along with the GBX 77.50 of earnings per share, Admiral has declared a GBX 71.00 per share dividend, made up of 65% of pretax profit, plus a special dividend of GBX 19.70 per share. Return on equity has risen from 39% to 45% half on half. We maintain our GBP 30.70 per share fair value and our narrow economic moat.

For some, if not many investors, dividends are important. This is no less the case in European insurance. However, while investing for dividends can seem straightforward, we think there is more to it than just hunting for stocks that provide the highest yield. Within our European insurance list of 18 companies, we recommend Admiral, Allianz, Munich, and Zurich as the best options for investors looking for a solid, stable, reliable, and real yield. In establishing this list, we rule out companies that have had a track record of omitting dividends and those that have frequently made dividend cuts that we think are meaningful.

Admiral is a rare example of an insurance company with a narrow moat.

For 2023, Admiral reported profit before tax of GBP 442.8 million, or GBX 111.20 in earnings per share, and a GBX 103 per share full-year dividend. These stack up slightly lower than our respective estimates of GBP 468.6 million, GBX 117 per share, and GBX 105 per share, which were based on IFRS 4. The new accounting standard resulted in lower profit in UK motor in 2022 for comparison. Consensus estimates per LSEG were for GBX 116.60 in earnings per share and GBX 107.60 for a dividend for 2023. The proposed final dividend to be paid is GBX 52 per share, made up of a normal dividend of GBX 35.40 per share equal to 65% of post-tax profits and a GBX 16.60 per share special dividend. Admiral shares will trade excluding this final dividend from May 9, with May 10 as the record date. The final dividend will be paid June 10. The group’s solvency ratio at the end of 2023 stood at 200%, a rise of 20 percentage points on the prior year. This increase is predominantly a result of a rise in operating capital generation, in particular from UK motor. Sensitivities remain broadly unchanged. Total cash at the end of the year was GBP 353.1 million. We maintain our fair value estimate and narrow moat rating.