Admiral Group PLC Admiral Group 2021 Half Year Results Trading Update
July 12 2021 - 2:00AM
UK Regulatory
TIDMADM
Admiral Group plc
12 July 2021
Admiral Group 2021 half year results trading update
Based on preliminary figures, Admiral Group ("Admiral" or "The
Group") anticipates a higher than expected Group profit before tax
for the first half of 2021 in the range of GBP450 to GBP500 million
(continuing operations)(1) .
The stronger result is due to unusually positive development in
the cost of UK motor bodily injury claims from a number of prior
underwriting years which has led to higher reserve releases and
profit commission revenue. There has been no change to Admiral's
prudent approach to claims reserving.
Further, motor claims frequency in 2021 to date has been lower
than expected due to extended lockdown restrictions resulting in a
favourable current period loss ratio, despite the significant
reductions in Admiral's premium rates over the past twelve months,
which followed the GBP110 million of premium refunded to customers
in May 2020.
On the basis of these preliminary results and a very strong
solvency position, the proposed 2021 interim dividend is expected
to be in the range of 110 to 125 pence per share.
It is not currently expected that the level of reserve releases
and profit commission for the first half of 2021 will be repeated
in the second half.
The sale of the Penguin Portals comparison businesses was
completed on 30 April 2021. Of the net proceeds from the
transaction of approximately GBP460 million, Admiral expects to
return GBP400 million to shareholders in the form of special
dividends phased over 2021 and 2022. The first payment will be made
with the interim 2021 dividend referred to above. Further detail
will be provided with the Group's half year results announcement in
August.
Figures shown in this release are preliminary and subject to
completion of internal governance processes and external audit
review. Admiral will publish its 2021 half year results on
Wednesday 11 August 2021.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014.
For more information, please contact:
Admiral Group plc
Marisja Kocznur marisja.kocznur@admiralgroup.co.uk
Investors & Analysts
FTI Consulting
Edward Berry +44 (0) 20 3727 1046
Tom Blackwell +44 (0) 20 3727 1051
[1] Excluding profit on disposal from the Penguin Portal sale
which completed on 30 April 2021
(END) Dow Jones Newswires
July 12, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Admiral (LSE:ADM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Admiral (LSE:ADM)
Historical Stock Chart
From Jul 2023 to Jul 2024