Admiral Group Reports Record H1 Profit, Boosting Dividend by 62%
Why we think this is very good
Admiral Group has delivered an exceptional first half performance, with profit before tax from continuing operations surging 69% to £521 million. This robust growth is complemented by a 72% increase in earnings per share and a substantial 62% hike in the interim dividend. The company's core UK Motor Insurance business saw profits jump 56%, while UK Household Insurance more than doubled its profit. Customer numbers grew impressively by 10% to 11.42 million, indicating strong market penetration. The insurance service margin improved significantly from 12.6% to 18.8%, reflecting enhanced operational efficiency. Despite flat overall turnover, insurance revenue increased by 18%, suggesting a favorable shift in revenue mix. The company maintains a strong solvency ratio of 194%, providing financial stability. Management's confident outlook and commitment to delivering shareholder value further bolster the positive sentiment. While there are mentions of headwinds, the overwhelming strength of the financial performance and growth metrics point to a very positive outlook for Admiral Group.
Key Points
- Group profit before tax from continuing operations up 69% to £521.0m
- Earnings per share from continuing operations increased 72% to 132.5p
- Interim dividend per share up 62% to 115.0p
- Group customers increased 10% to 11.42m
- UK Motor Insurance profit up 56% to £559 million
- UK Household Insurance profit more than doubled to £25.2 million
- Admiral Money profit grew strongly to £16.3 million
- Insurance service margin improved to 18.8% from 12.6%
- Solvency ratio remains strong at 194%
- CEO confident in fundamentals and adaptability for further success
Summary
Admiral Group has delivered exceptional H1 2025 results, with profit before tax from continuing operations up 69% to £521.0m. The company saw strong growth across key metrics, including a 72% increase in earnings per share to 132.5p and a 62% rise in interim dividend to 115.0p per share. Customer numbers grew by 10% to 11.42 million, with UK insurance customers up 13%. The UK Motor Insurance profit increased by 56% to £559 million, while UK Household Insurance profit more than doubled to £25.2 million. Admiral Money also showed strong growth. The company maintained a robust solvency ratio of 194%. Despite flat overall turnover, insurance revenue increased by 18% to £2.47bn, and the insurance service margin improved significantly to 18.8% from 12.6%. The CEO expressed confidence in the company's fundamentals and adaptability for future success, indicating a positive outlook for continued growth and value creation.