Admiral Share Discussion Threads

[ignoble] 21/5/2019 06:00

Just had my first experience of Admiral for car renewal
Very impressed... Very competitive price wise and exceptional customer service.

[speedsgh] 08/3/2019 09:25

Admiral faces uncertain 2019, says Numis -

Rising cost claims have hit insurer Admiral’s (ADM) competitiveness and the market is trying to work out what motor margins will look like this year, says Numis.

Analyst Nick Johnson retained his ‘add’ recommendation and target price of £21.45 on the stock after 2018 profit before tax came in ahead of consensus at £479 million, up 18% on the previous year.

However, the outlook is not completely rosy for the insurer.

‘As well as pointing out the positives, refreshingly the chief executive’s headline comments are also honest about the negatives - mainly being a slowdown in the UK motor business in the second half of the year, with Admiral saying it reduced its competitiveness in the face of rising claims costs,’ said Johnson.

‘We expect this to be the main area of focus as the market attempts to get a handle on the margin outlook for UK motor in 2019.’

The shares fell 4.7% to £20.89 yesterday.

[fenners66] 07/3/2019 09:01

Good but not good enough results....

[speedsgh] 16/8/2018 09:19

Admiral profits and dividend buoy investors -

Admiral (ADM) may have seen a rise in half-year profits but the insurer hasn’t escaped the impact of the Beast from the East, says The Share Centre.

The insurer posted a 9% rise in half year profits, boosted by car insurance where profits were up 11.3%. The shares rose 3.2% to £20.62 yesterday.

‘Investors should be pleased with the 7% increase in the dividend to 60p and further encouragement should be found in the increasing customer base, up 14% to 6.2 million as well as the enlarged overall turnover up 14% to £1.7 billion,’ said analyst Graham Spooner.

‘However... it did report that the Beast from the East earlier this year had a detrimental impact on the group’s UK household division, pushing it into the red.’

Spooner added that the shares had ‘traded sideways’ over the past two years but he continued to recommend them as a ‘hold’ for ‘medium risk investors geared to income due to the strength of the motor business in the UK, improving overseas operations, and the strong capital position’.

[speedsgh] 16/8/2018 09:16

Admiral Group plc results for the six months ended 30 June 2018 -

Group's share of profit before tax*1: £212 million (H1 17: £195 million) +9%
Group statutory profit before tax: £211 million (H1 17: £193 million) +9%
Earnings per share: 61.6 pence (H1 17: 57.3 pence) +8%
Interim dividend: 60.0 p/per share (H1 17: 56.0p/per share) +7%
Return on equity*1: 54% (H1 17: 55%) -2%

Group turnover*1: £1.66 billion (H1 17: £1.45 billion) +14%
Group net revenue: £0.60 billion (H1 17: £0.55 billion) +9%
Group customers*1: 6.23 million (H1 17: 5.46 million) +14%
UK Insurance Customers*1: 5.07 million (H1 17: 4.34 million) +17%
International Car Insurance customers*1: 1.12 million (H1 17: 0.96 million) +17%

Group's share of Price Comparison profit*1: £3.5 million (H1 17: £3.1 million) +13%
Statutory Price Comparison profit: £2.6 million (H1 17: £2.4 million) +8%

Solvency ratio (post dividend): 196% (H1 17: 214%)

Over 10,000 staff each receive free shares worth £1,800 under the employee share scheme based on the interim 2018 results

Comment from David Stevens, Group Chief Executive Officer
'Zut alors! Nos opérations européennes sont rentables! Or probably more accurately, given that over half of our European customers are Italian - le nostre compagnie Europee sono in profitto! Moreover, the European insurers delivered overall profitability whilst growing the business by almost a fifth in a year.

But that's not the only important milestone in the first half, which was characterised by substantial growth across almost all our businesses.

Most importantly, the core UK car insurance business continues to grow both in terms of profit and customer numbers. Early in 2018 we passed the four million mark for cars on cover - the car that hit the milestone was a Peugeot 108; our first 25 years ago was an Isuzu Piazza.

All of this is underpinned by our strong culture and hard-working, customer-focused staff, and we are proud to have been named the 3rd Best Company to Work For in the UK, as well as the 10th Best Workplace in Europe and 3rd in Italy.'

Dividend
The Directors have declared an interim dividend of 60.0 pence, representing a normal dividend of 40.8 pence per share and a special dividend of 19.2 pence per share. The dividend will be paid on 5 October 2018. The ex-dividend date is 6 September 2018 and the record date is 7 September 2018.

[danieldanj] 15/8/2018 10:22

Admiral Group (ADM) News Out Just Now

[speedsgh] 20/3/2018 11:04

Personal injury compensation reforms announced -

The Government is today introducing the Civil Liability Bill into the House of Lords to make important changes to the system of compensation for personal injury in England and Wales.

The Bill will reform the law of England and Wales relating to whiplash claims and the way in which the personal injury discount rate is set under the Damages Act 1996.

The principal changes in respect of the discount rate are that the rate will be set by reference to expected rates of return on a low risk diversified portfolio of investments rather than on very low risk investments as under the present law; in setting the rate, the Lord Chancellor will consult an independent expert panel chaired by the Government Actuary, with HM Treasury remaining a statutory consultee; and the discount rate will be reviewed promptly after the legislation comes into force and, thereafter, at least every three years.

The introduction of the legislation follows the conclusion of the Government's consideration of the report of the Justice Select Committee on the draft legislation published by the Ministry of Justice in September 2017. The Government's response to the Committee's report will also be published later today.

[speedsgh] 28/2/2018 13:57

Growth of the full year dividend including additional returns (i.e. special dividends) has stalled in recent years...

TOTAL FY 2017 - 77.40p (114.00p incl special div)
special - 18.50p/share (paid Jun 18)
final - 39.50p/share (paid Jun 18)
special - 18.10p/share (paid Oct 17)
interim - 37.90p/share (paid Oct 17)
------------------------------------------
TOTAL FY 2016 - 51.80p (114.40p incl special div)
special - 36.50p/share (paid Jun 17)
final - 15.00p/share (paid Jun 17)
special #2 - 11.90p/share (paid Oct 16)
special #1 - 14.20p/share (paid Oct 16)
interim - 36.80p/share (paid Oct 16)
------------------------------------------
TOTAL FY 2015 - 58.70p (114.40p incl special div)
special - 29.80p/share (paid Jun 16)
final - 33.60p/share (paid Jun 16)
special - 25.90p/share (paid Oct 15)
interim - 25.10p/share (paid Oct 15)
------------------------------------------
TOTAL FY 2014 - 46.20p (98.40p incl special div)
TOTAL FY 2013 - 46.90p (99.50p incl special div)
TOTAL FY 2012 - 42.70p (90.60p incl special div)
TOTAL FY 2011 - 36.90p (75.60p incl special div)
TOTAL FY 2010 - 32.40p (68.10p incl special div)
TOTAL FY 2009 - 26.50p (57.50p incl special div)
TOTAL FY 2008 - 24.60p (52.50p incl special div)
TOTAL FY 2007 - 21.90p (43.80p incl special div)
TOTAL FY 2006 - 17.90p (36.10p incl special div)
TOTAL FY 2005 - 14.60p (24.60p incl special div)

[speedsgh] 28/2/2018 13:53

Admiral Group plc announces a record Group profit before tax of £405 million for the year ended 31 December 2017 -

Comment from David Stevens, Group Chief Executive Officer

"It's 25 years since the launch of Admiral. 2016 was only the second year we'd ever reported a year on year fall in profits. So it's great to be back in the groove, with a 23rd year of "record profits".
Beyond the pure financials, there's also a lot going on that helps build the longer-term prosperity of the Group - notably our investment in widening our product range (van, travel, loans in 2017) in a way that helps us attract more customers, and understand and serve better both new & existing customers.

Whilst lots of things have changed, some things have remained the same, including the importance we attach to our staff's well-being. After 17 years of featuring highly as one of the Best Places To Work in the UK, and 15 years in the European rankings, 2017 saw us make it onto the "Best Places in the World" rankings, coming a creditable 23rd."

[pj fozzie] 05/1/2018 09:55

So given the 'upgrade' from DB - why the drop in price today? It's the biggest faller in my portfolio.

Curiously,
PJ

[speedsgh] 05/1/2018 08:10

Deutsche Bank upbeat on European insurance sector, raising price targets for a swathe of UK names -

The bank's analysts said insurers "look reasonably positioned – cushioned against market weakness by strong balance sheets and on PEs that are well within the long-term trading range”

Deutsche Bank has issued an upbeat note on the European insurance sector at the start of 2018, raising price targets for a swathe of UK names including Admiral Group PLC (LON:ADM), esure Group PLC (LON:ESUR), Legal & General Group PLC (LON:LGEN), Prudential PLC (LON:PRU), St James’s Place PLC (LON:STJ), and RSA Insurance Group PLC (LON:RSA).

In a note to clients, the German bank’s analysts said: “Strong balance sheets provide underpin; rising yields offer optionality.”

They added: “DB's strategists are generally cautious on the year ahead, but insurers nonetheless look reasonably positioned – cushioned against market weakness by strong balance sheets and on PEs that are well within the long-term trading range.”

The analysts concluded: “Overall, we feel the sector can modestly outperform in 2018, particularly if bond yields rise (as DB expects) – though given our cautious top-down view, our preference is for higher-quality/safer stocks.”

They noted that many of the higher-quality insurance stocks performed well in 2017, and selectively they see this momentum continuing, highlighting Prudential.

The analysts also analysed the downside in UK insurers from UK political risk, concluding that for most stocks the impact of a hard Brexit, for instance, is manageable.

They said that, in this regard, the December rally in UK insurers looks justified, while Aviva PLC (LON:AV.) and - to a lesser extent - L&G still look oversold.

In contrast, the analysts downgraded their rating for Phoenix Group Holdings PLC (LON:PHNX) to ‘hold’ from ‘buy’, primarily reflecting their perception that “the market for UK closed book acquisitions has become more competitive, implying less potential accretion on future deals.”

[speedsgh] 07/11/2017 21:01

Notice of Results -

Admiral Group plc will be announcing its 2017 Preliminary Results on Wednesday 28 February 2018 at 7.00am...

[trt] 17/8/2017 07:42

Can see this dropping back to £18 level

[speedsgh] 16/8/2017 11:14

DeanForester - Possibly. What has happened to the phased return of additional capital linked to the new Solvency II regime? See below from the 2016 Interims...



The Group's dividend policy is to pay 65% of post-tax profits as a normal dividend and to pay a further special dividend comprising earnings not required to be held in the Group for solvency or buffers. The Group entered into the new Solvency II regime in January with surplus capital and is returning additional capital to shareholders in a phased manner, up to the first half of 2018. The current expectation is for the total additional return on capital to be in the region of £100 million - £150 million.

The Directors have declared a total interim dividend of 62.9 pence per share (£174.7 million), comprising three elements,

> 36.8 pence per share normal dividend;
> A special dividend of 14.2 pence per share; and
> A further additional return of capital of 11.9 pence per share, representing an element of surplus capital not required for solvency as noted above.

The normal and special elements total 51.0 pence per share, in line with the total interim dividend for 2015. The additional special element of 11.9 pence per (£33 million) is the second instalment of the additional returns of capital referred to above...

[deanforester] 16/8/2017 10:35

Total paid out at last year's interim was 51p plus 11.9p return of capital, 62.9p total.

This year, 37.9p plus 18.1p special, 56p total.

Maybe that's the reason.

[pj fozzie] 16/8/2017 08:13

Results seem OK to me - anyone know why the drop?

Cheers,
PJ

[garycook] 16/8/2017 07:48

ADM,Hit hard 6% down, seeing profits are up !

[speedsgh] 16/8/2017 07:19

Interim Results -

Comment from David Stevens, Group Chief Executive Officer:

"The first half of 2017 saw Admiral ambitious in pursuit of both immediate and longer-term growth opportunities.

"We've grown turnover and customer numbers in our existing businesses by over 13% while also delivering a first half of important "firsts" - the first loans originated on our new dedicated lending system, the first cars sold on Confused.com, the first vans directly underwritten in the UK and Spain.

"Most of the adverse impact from the increase in the costs of large injury claims, resulting from the change in the Ogden discount rate, was captured in our 2016 second half result. However, some extra costs carry into 2017. In these circumstances, we are happy to report a marginal increase in profitability and to deliver a more material increase in the underlying dividend."

Dividend

The Directors have declared an interim dividend of 56.0 pence per share, representing a normal dividend of 37.9 pence per share and a special dividend of 18.1 pence per share. The dividend will be paid on 6 October 2017. The ex-dividend date is 7 September 2017 and the record date is 8 September 2017.

[stoxx67] 03/5/2017 13:39

buying ahead of Dividend payment !!

[speedsgh] 08/3/2017 13:41

Preliminary Results -

Comment from David Stevens, Group Chief Executive Officer
"My first full year as CEO, and after 25 years of almost uninterrupted profit growth under my predecessor, profits are down a quarter! Not exactly a flying start!

On the other hand our ability to grow our businesses rapidly, both in the UK and overseas, and to absorb the shock of an eccentric government decision on discount rates while delivering a 37% return on equity and again paying a substantial dividend is a tribute to the health of the business and resilience of our model.

I am also delighted that for a record 17th year in a row, Admiral Group has continued its success in the Sunday Times Best Companies to Work For, placing 2nd, our joint highest position ever."

Dividend
The Directors have proposed a final dividend of 51.5 pence, representing a normal dividend of 15.0 pence per share and a special dividend of 36.5 pence per share. The dividend will be paid on 2 June 2017. The ex-dividend date is 11 May 2017 and the record date is 12 May 2017.

New CEO re his priorities...
My priorities for the forthcoming year are set out below. I expect them to remain my priorities for a number of years to come.
> Ensure Admiral remains one of, if not the, best car insurers in the UK...
> Demonstrate Admiral can be a great car insurer beyond the UK...
> Develop sources of growth and profits beyond car insurance...
> Ensure Admiral stays a great place to work...

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

[jacko41] 28/2/2017 10:00

6.6% dividend yield should back up a possible rise in the share price