Admiral Share Discussion Threads

[topvest] 27/2/2017 20:51

What an absolutely ridiculous decision by the Government. Guaranteed to add 5% to insurance premiums from March and destabilising the insurance industry in the meantime as none of the companies were projecting such a low discount rate and this hits their capital surpluses. To me a negative discount rate is ridiculous. I'm an accountant and don't see discount rates below 1% on anything I look at. Having a negative discount rate looks and is totally ridiculous and a direct result of printing money. The government are stoking up massive inflation for later in the year. First food and energy, now insurance. What next?

[speedsgh] 27/2/2017 09:43

Statement re Ogden Discount Rate -

Admiral Group plc notes today's announcement by the Lord Chancellor of a change from 2.5% to -0.75% in the discount rate used by the courts in England and Wales to calculate personal injury damages awards, commonly referred to as the Ogden discount rate.

In order for the impact of the new rate to be reflected in the Company's 2016 results, Admiral has decided to postpone the preliminary announcement of the results for the year ended 31 December 2016 from 1 March 2017 to 8 March 2017.

The reduction in the discount rate will have the effect of increasing the cost of personal injury claims, therefore also increasing the ultimate loss ratio for all business written up to the effective date, part of which will be earned and part unearned. The majority of the financial impact in respect of premiums earned during 2016 and prior years will be reflected as a one-off charge against 2016 second half profits. The balance (along with the impact on business written but unearned at the date of change) will be recognised as lower reserve releases and profit commission mainly over the subsequent three to five financial years as the affected claims settle.

The estimated total net financial impact1 of all claims settling at the new rate is £140m to £175m. The estimated net financial impact on 2016 reported profit is £70m to £100m.

Given the Group's strong capital position, and reflecting the non-recurring nature of this charge, the Group expects to maintain the final dividend at last year's level of 51.5 pence per share, notwithstanding the reduced level of second-half reported profits.

The Group anticipates that if market pricing adjusts future premiums to reflect the lower discount rate, there will be no significant impact on future business and its profitability after the change. The Group is also confident that its strong capital position, along with its prudent approach to claims reserving, will allow it to address the outcome without significant change to its business or long term financial outlook.

Admiral notes the announcement by the Lord Chancellor of her decision to review the framework under which the rate is set and looks forward to the prompt conclusion of the review.

Further information (including in relation to the potential for future returns of surplus capital to shareholders) will be provided with the results announcement on 8 March 2017.

[garycook] 04/2/2017 04:45

Insurance champion
Admiral (LSE: ADM) looks to me to be another top stock that’s currently too cheap to pass up. Shares in Admiral are trading at a forward P/E of 16.8, which may seem expensive at first glance but Admiral is a long-term growth story. Over the next three years, City analysts expect the group to increase pre-tax profits by around 30%. Further growth could be on the cards if the company’s international operations report maiden profitability.

Admiral’s steady growth is complemented by a 6.6% dividend yield. Such a combination of growth and income is usually tough to find so shares in the firm may be worth snapping up before the market catches on to this opportunity.

[linton5] 03/2/2017 16:31

Did you light the fuse Gary with mr Beazley

[linton5] 25/1/2017 16:14

lol they've Sussed out it's a bargain mms searching for shares lately

[garycook] 24/1/2017 04:07

Seems that way.SP recovered from 1680 to 1750.

[linton5] 23/1/2017 11:25

This is a steal under 17 for sure

[fenners66] 23/1/2017 10:53

They know all bout fines in the $billions...

[linton5] 23/1/2017 09:20

I'm on the button

[fenners66] 23/1/2017 08:50

And the fall has gathered some pace this morning , any known reasons for today's fall?

[fenners66] 18/1/2017 22:39

I think you have answered your own question there Linton, everyone thinks as you do, why buy today if they are down tomorrow?

[linton5] 18/1/2017 16:07

I can't fathom this stock out pru and Aviva and a couple more never get hammered but admiral does, they have a great divi policy and results are always positive but down they go. Gonna buy some of these soon

[linton5] 13/1/2017 11:42

Keep an eye on Clln essentialinvestor

[essentialinvestor] 13/1/2017 11:34

Could there be an opportunity for DLG to take share from Admiral in this case?,
if the FT report is accurate.

[jfk69] 13/1/2017 01:03

The 'Ogden' tables help actuaries, lawyers and others calculate the lump sum compensation due in personal injury and fatal accident cases. There has been a change to the calculation - see markets live FT

[qvg] 12/1/2017 16:49

HSTG doing better. I have sold Admiral and bought HSTG

[garycook] 12/1/2017 11:11

Same over at DLG,and other Insurers.

[fenners66] 12/1/2017 10:35

Chart looks like continuing to fall. Maybe the next results will fix, or maybe the market knows something we don't.

[linton5] 10/1/2017 11:39

I can't understand how this share is unloved considering it's previous updates,most stocks have taken off but not poor old admiral.great divi aswell

[micos] 09/12/2016 16:18

Is there a reason for the sudden drop at 1500 today?

[garycook] 27/10/2016 07:00

To all ADM shareholders. I have today put a Limit sell order on my holding in ADM of £25,to stop Shorter,s from loaning the shares from my broker,which they can do for a fee,without me or you knowing about.I suggest you do the same.

[dr biotech] 18/8/2016 17:30

Shore always seem to be quoted when it comes to insurers, not really why sure except they are typically bearish.

Was hoping for some proper weakness here but seems it's not to be, will just have to leave them on my watchlist for now.

[essentialinvestor] 18/8/2016 09:49

Anyone think DLG may be looking value currently?, I do and wondering
If missing something - not for the fist time )

[speedsgh] 18/8/2016 08:00

Admiral’s ‘Brexit’ blues -

Shore Capital has kept its ‘sell’ rating on Admiral after insurer reported a hit to its capital buffer following the ‘Brexit’ vote.

Shares in Admiral (ADML) fell 7.9% to £20.76 yesterday as the insurer flagged in half-year results that the fall in interest rates following the EU referendum had increased the value of its claim liabilities. That has reduced the level of cash it holds as a buffer, although it is still well above the minimum the insurer is required to hold under ‘Solvency II’ rules.

‘A number of features of Admiral’s 2016 interims are likely to worry the market,’ said Flanagan. ‘We expect most attention to focus on the fall in Admiral’s Solvency II coverage ratio from 206% to 180% at the end of June.

‘The group hopes to avoid further such falls via the use of a volatility adjusted yield curve which would have increased the figure back to 196%. We await details of the move and whether it will impact the group’s return of capital strategy. We also wait to see what “Brexit” brings the group in respect of its Gibraltar domicile and the passporting rules for its European operations.