Analyst Note| Henry Heathfield, CFA |
On Dec. 11 Admiral Group announced its current CEO, David Stevens, is retiring with a handover being made to Milena Mondini de Focatiis. This change will officially take place on Dec. 31 though Stevens will continue to work for Admiral in a part-time capacity providing consultancy support on risk selection and as a board member of Admiral Financial Services. Stevens worked for McKinsey & Company prior to co-founding Admiral and then taking over as CEO in 2015. His tenure over the past five years has seen Admiral’s stock price rise by close to 55% and its book value of equity by close to 400%. Clearly, Stevens' retirement will be a loss for the business. Mondini de Focatiis currently leads Admiral’s United Kingdom and European insurance and has been with the business since 2007, spending her early years at ConTe.it, Admiral’s Italian business unit. We maintain our GBP 30.0 per-share fair value estimate and no moat rating.