Thousands of Admiral employees set to receive share bonuses, valued at up to £1,800 each
Admiral Group Reports Strong Half-Year Results
The Admiral Group, a leading UK-based insurance provider, has announced a 69% increase in profit before tax to £521 million for the first half of 2025. This growth was primarily driven by a strong performance in the UK motor insurance market, where profits rose 56%.
The company's earnings per share climbed by around 70%, and it increased its interim dividend by 62% to 115p per share. Group turnover remained flat at £3.10 billion, but insurance revenue rose 18% to £2.47 billion thanks to growth in UK motor and household lines, despite a 3% decline in European insurance customers.
Russ Mould, investment director at AJ Bell, praised Admiral's brand strength, allowing it to remain disciplined on price while attracting new business. Mould stated that Admiral is performing well, with a strong motor insurance business and smart pricing tools. He also mentioned that Admiral is being rewarded for treating customers well, driving customer loyalty.
In the UK motor insurance segment, the company reported a pre-tax profit of £559 million for the six months to the end of June, an increase from £359 million the previous year. Customer numbers grew by 5% for UK motor insurance, reflecting strong market demand despite premium reductions, which reduced turnover in this segment (-6%).
The surge in profitability signals strong underwriting discipline and pricing, contributing to market competitiveness and growth prospects. Mould highlighted that Admiral recently avoided a potential hazard as the FCA decided to take no regulatory action on premium finance.
However, the company is currently dealing with a Financial Conduct Authority probe into UK motor insurance total loss claims valuations. The expected incremental claims cost of this action to Admiral is approximately £50 million, with around half accounted for in H1 2025 and the remainder in the previous financial year. Admiral expects to begin contacting impacted customers during H2 2025, and the final cost of the action is not expected to vary materially from the noted £50 million.
Despite this, the return on equity improved notably from 45% to 57%, while the solvency ratio slightly decreased from 198% to 194% after dividend payments. This remains robust, implying the company is well-capitalised for ongoing operations and expansion.
Growth in related segments such as household insurance (up 29% in turnover) and Admiral Money (loan balances up 25%) suggests diversified income streams supporting future stability. The CEO expressed high confidence in the company’s fundamentals and adaptability, indicating expectations for continuing growth and value creation.
In summary, Admiral's stellar half-year results underscore a robust motor insurance business and overall group growth, supported financially by strong profits, dividend increases, and solid capital ratios. While the employee share scheme details are not explicit, it likely supports these positive outcomes by incentivizing performance. Admiral is well-positioned for future success with ongoing growth in key UK insurance segments and financial services.
[1] Admiral Group Half-Year Results 2025 [2] Russ Mould's comments on Admiral Group [3] Financial Times: Admiral Group Half-Year Results 2025 Analysis [4] City AM: Admiral Group Half-Year Results 2025 [5] Motor Trader: Admiral Group Half-Year Results 2025
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