Admiral Group Shares Jump On Profit Surge, Special Dividend

Admiral Group shares (LON:ADM) have hit a new high this morning at 3,632p off the back of stellar interim results for the first half of 2025, exceeding expectations and rewarding shareholders with a special dividend. The insurer's strong performance underscores the resilience of its core business, and has been supported in markets with a 6% gain early in the day.

Group profit before tax from continuing operations soared to £521.0 million, a remarkable 69% increase compared to £307.6 million in H1 2024. Earnings per share also saw a significant jump, rising 72% to 132.5p from 76.9p. The board has declared an interim dividend of 115.0p per share, a substantial 62% increase year-over-year, plus a special dividend of 29.1p, reflecting the company's strong capital position.

The surge in profitability is further highlighted by a return on equity of 57%, a 12 percentage point increase from 45% in the prior year. Group turnover remained stable at £3.10 billion, but insurance revenue climbed 18% to £2.47 billion, demonstrating the strength of Admiral's underwriting operations.

Admiral's commitment to returning value to shareholders is evident in the increased dividend payout and special dividend announcement. The company's robust profitability and strong capital position, as reflected in a solvency ratio of 194%, post-dividend, allows it to distribute excess capital while maintaining a healthy buffer against potential risks. This move is likely to be viewed positively by markets, potentially driving further investor interest in the stock.

Driver Breakdown:

• UK Insurance Growth: A 13% increase in UK insurance customers drove revenue growth.
• Admiral Money Expansion: A 25% increase in gross loan balances indicates successful diversification.
• Improved Underwriting: Better claims management and pricing strategies boosted profitability.

Admiral Group's customer base continues to expand, with total group customers increasing by 10% to 11.42 million. UK insurance customers grew by 13% to 9.30 million, while European insurance customers saw a slight decrease of 3% to 1.91 million. Admiral Money also experienced significant growth, with gross loan balances increasing by 25% to £1.28 billion.

AskTraders Takeaway:
The strong H1 results and special dividend announcement are likely to create positive momentum for Admiral Group's stock in the short term. Investors may see this as an opportunity to capitalize on the company's strong performance and attractive dividend yield.

Milena Mondini de Focatiis, Group Chief Executive Officer, stated, “I’m very excited to see our businesses go from strength to strength. I’m confident in our fundamentals and adaptability which mean that we are well-placed for further success, delivering even more value for our shareholders and our growin.”

Admiral Group's exceptional H1 results, coupled with the special dividend, have set up the stock for new highs today, bulls couldn't have asked more much more really.