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1. Company Snapshot

1.a. Company Description

Admiral Group plc provides car insurance products in the United Kingdom, Spain, Italy, France, India, and the United States.The company operates through UK Insurance, International Insurance, Admiral Loans, and Other segments.It underwrites car, van, household, and travel insurance, as well as offers unsecured personal and car loans, and legal services.


It offers its insurance products under the Admiral, Apparent, Balumba, Bell, Diamond, Elephant, Elephant Auto, Gladiator, L'Olivier, Qualitas Auto, and WiYou Seguros brand names, as well as through Compare.com and ConTe.it.The company was founded in 1993 and is headquartered in Cardiff, the United Kingdom.

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1.b. Last Insights on ADM

Admiral Group's recent performance was driven by excellent H1 2025 results, with a 69% increase in group profit before tax from continuing operations to £521.0m and a 72% rise in earnings per share to 132.5p. The company's insurance revenue grew 18% to £2.47bn, driven by a 13% increase in UK insurance customers to 9.30m. A 62% hike in the interim dividend per share to 115.0p also contributed to the positive momentum. Additionally, the company's robust return on equity of 57% reflects its solid financial health.

1.c. Company Highlights

2. Admiral Group Delivers Record Profit Amidst Favorable Market Trends

Admiral Group reported a record profit of £521 million in the first half of 2025, a 70% increase year-on-year, driven by strong underwriting results in its U.K. Motor business. Earnings per share (EPS) rose to 132.5p, beating estimates of 126p. The company's return on equity (ROE) was close to 60%, indicating robust profitability.

Publication Date: Aug -15

📋 Highlights
  • Record Profit Growth: Profit surged to £584m in H1 2025 (70% YoY), driven by U.K. Motor (£221m profit increase) and Admiral Money (doubled profit).
  • Customer Expansion: Added 1 million customers (10% YoY growth), with U.K. Motor growing 5% and Household/Pet up 30% YoY.
  • U.K. Motor Margin Improvement: Combined ratio improved by 3 points to 94%, with disciplined pricing and lower claims frequency.
  • Strong Capital Position: Solvency ratio at 194%, supporting £115p interim dividend (+60% YoY) and a 2026 special dividend.
  • AI/Technology Efficiency: 40% faster time-to-production for AI models, enhancing predictive analytics and underwriting competitiveness.

U.K. Motor Business Drives Profit Growth

The U.K. Motor business was the key driver of profit, with a significantly higher underwriting result. The company's expense ratio improved, and the loss ratio was broadly flat. According to Geraint Jones, "U.K. Motor's profit increased by £221 million, driven by a big increase in the underwriting result." The company's pricing remained disciplined, reflecting market claims outlook.

European Operations Show Improvement

In Europe, Admiral successfully turned around its Italian business, ConTe, and continued to grow profitably in France. The company aims to contribute meaningfully to group profit by building scale and improving trading margins, targeting high single-digit margins in its direct business.

Strong Capital Position and Dividend Payout

Admiral's capital position is strong, with a solvency ratio of 194%. The interim dividend has been increased by over 60% to 115p a share, with a special dividend expected in 2026. The company's strong results and robust capital position support its dividend payout.

Valuation Metrics

Admiral Group's valuation metrics indicate a reasonably priced stock, with a P/E ratio of 16.47, P/B ratio of 7.97, and dividend yield of 5.38%. The company's ROE of 53.48% and ROIC of 4.32% suggest strong profitability and capital efficiency.

Outlook and Guidance

Looking ahead, Admiral expects market claim severity inflation in the second half to be similar to the first, although macro volatility causes some uncertainty. The company expects premiums to need to increase in the near future or else see a marked deterioration in the 2026 market combined ratio. Admiral remains confident of driving sustainable profitable growth over the medium term, driven by customer centricity, motor operational excellence, and building a strong track record of sustainable profitable growth in Home, Travel, and Pet.

3. NewsRoom

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How Recent Developments Are Rewriting the Story for Admiral Group

Nov -30

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How the Story Around Admiral Group Is Evolving After Analyst Price Target Upgrades

Nov -16

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Director/PDMR Shareholding

Nov -14

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UK Dividend Stocks To Watch In November 2025

Nov -13

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Looking at the Narrative for Admiral Group After Analyst Upgrades and Price Target Increases

Nov -02

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Why Analysts See a Shifting Story for Admiral Group as Views on Value Diverge

Oct -18

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FTSE 100 closes higher despite sluggish economic growth

Oct -16

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Looking at the Narrative for Admiral Group After Analyst Upgrades and Evolving Market Trends

Oct -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.49%)

6. Segments

UK Insurance

Expected Growth: 4.5%

Admiral Group plc's 4.5% growth in UK Insurance is driven by increasing demand for motor insurance, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization, cost savings, and improved customer experience have contributed to its growth. Furthermore, the UK's growing economy and rising vehicle sales have also supported the segment's expansion.

International Insurance

Expected Growth: 8.23%

Admiral Group plc's International Insurance segment growth of 8.23% is driven by increasing demand for motor insurance in emerging markets, expansion into new territories, and strategic partnerships. Additionally, the segment benefits from a strong brand reputation, efficient underwriting processes, and a diversified product portfolio, which enables the company to capitalize on growth opportunities in a rapidly changing market.

Admiral Money

Expected Growth: 8.3%

Admiral Money's 8.3% growth is driven by increasing demand for digital insurance products, expansion into new markets, and strategic partnerships. Additionally, Admiral Group's strong brand reputation, efficient underwriting processes, and competitive pricing contribute to the segment's growth.

Other

Expected Growth: 8.3%

Admiral Group plc's 8.3% growth in 'Other' segment is driven by increasing demand for its ancillary products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation and cost savings initiatives have improved operational efficiency, contributing to the segment's growth.

Eliminations

Expected Growth: 4.83%

Admiral Group plc's 4.83% growth is driven by increasing demand for motor insurance, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digitalization, cost savings initiatives, and strong brand recognition contribute to its growth momentum.

7. Detailed Products

Car Insurance

Admiral Group plc offers car insurance policies that provide financial protection against physical damage, bodily injury, and liability to third parties.

Home Insurance

Admiral Group plc provides home insurance policies that cover damage to buildings, contents, and personal belongings, as well as liability to third parties.

Van Insurance

Admiral Group plc offers van insurance policies that provide financial protection against physical damage, bodily injury, and liability to third parties, specifically designed for commercial vehicles.

Travel Insurance

Admiral Group plc provides travel insurance policies that cover unexpected medical and travel-related expenses, trip cancellations, and interruptions.

Pet Insurance

Admiral Group plc offers pet insurance policies that cover veterinary expenses, accidents, and illnesses affecting dogs, cats, and other pets.

Motorbike Insurance

Admiral Group plc provides motorbike insurance policies that cover physical damage, bodily injury, and liability to third parties, specifically designed for motorcyclists.

8. Admiral Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Admiral Group plc is medium due to the presence of alternative insurance providers in the market.

Bargaining Power Of Customers

The bargaining power of customers for Admiral Group plc is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Admiral Group plc is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Admiral Group plc is high due to the relatively low barriers to entry in the insurance industry.

Intensity Of Rivalry

The intensity of rivalry for Admiral Group plc is high due to the presence of multiple competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.55%
Debt Cost 3.95%
Equity Weight 46.45%
Equity Cost 4.97%
WACC 4.42%
Leverage 115.30%

11. Quality Control: Admiral Group plc passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 6.6

Quality: 7.2

Yield: 8.1

Momentum: 10.0

Volatility: 8.7

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Yield: 7.5

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A-Score: 7.1/10

Value: 3.9

Growth: 6.0

Quality: 7.5

Yield: 7.5

Momentum: 8.5

Volatility: 9.0

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A-Score: 6.5/10

Value: 6.2

Growth: 6.7

Quality: 9.0

Yield: 3.8

Momentum: 7.0

Volatility: 6.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.32$

Current Price

31.32$

Potential

-0.00%

Expected Cash-Flows