Download PDF

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.

Show Full description

1.b. Last Insights on ADM

Admiral Group's recent performance was driven by record profits, customer growth, and strategic investments. The company reported a £958 million profit for 2025, with significant growth in its customer base and dividends. Its updated strategy framework and approach to returning surplus capital to shareholders also contributed positively. Additionally, the acquisition of Flock, a digital commercial fleet insurance provider, is expected to drive innovation in the commercial motor market. A new approach to capital returns and investments in data, technology, and AI are key growth drivers.

1.c. Company Highlights

2. Admiral Group's Record Profit and Strategic Growth

Admiral Group reported a record profit of GBP 958 million for 2025, a 16% increase year-on-year, driven by disciplined execution and growth across the group. The earnings per share (EPS) came in at 1.11, beating analyst estimates of 1.06. Revenue growth was robust, with a 7% increase in customer base, and the UK Motor business achieved a record profit of over GBP 1 billion, with a combined ratio of 80%. The company's solvency ratio stood at 193%, indicating a strong capital position.

Publication Date: Mar -07

📋 Highlights
  • Record Profit Growth: GBP 958 million profit in 2025, a 16% YoY increase, driven by disciplined strategy and growth.
  • UK Motor Dominance: GBP 1.02 billion profit with an 80% combined ratio and 193% solvency ratio, outperforming the market by 20 points.
  • Customer Expansion: 7% customer base growth, with 1.6 million customers holding 2+ products (14% YoY), and NPS above 50.
  • Capital Returns: 7% dividend increase and share buybacks, alongside a GBP 100 million annual efficiency target via AI and automation by 2028.
  • Non-UK Growth: European operations turned profitable (GBP 39M Motor profit), with L'olivier (France) achieving double-digit turnover and profit growth.

Financial Performance and Outlook

The company's financial performance was characterized by strong underwriting profitability, as reflected in the combined ratio advantage of over 20 points versus the market. For 2026, Admiral expects to grow across all businesses, with turnover growth anticipated to be higher than in 2025, and group profit expected to be flat compared to 2025's record level. Analysts estimate revenue growth at 6.8% for the next year.

Valuation and Dividend Yield

With a Price-to-Book Ratio (P/B) of 6.32 and a Dividend Yield of 7.66%, Admiral's valuation appears attractive, especially considering its strong return on equity (ROE) of 51.59%. The dividend yield is particularly noteworthy, indicating a commitment to returning capital to shareholders. The company's capital management framework includes a 7% increase in dividend per share and a new approach to capital return, including share buybacks.

Strategic Initiatives and Growth Opportunities

Admiral's strategy focuses on creating more value through diversification, technology, and AI advancements, including over 150 AI initiatives. The company sees significant growth opportunities in large, attractive markets, with a combined size of around GBP 130 billion. It plans to drive organic growth through market-leading expertise in digital distribution and pricing sophistication, and will consider selective accretive acquisitions to accelerate diversification.

AI and Digital Transformation

The company is leveraging AI to drive growth and efficiency, with plans to extend advanced predictive AI capabilities into other lines of business. Admiral has appointed a new group CDO to help increase its ability to leverage AI, and expects to generate over GBP 100 million of annual efficiency benefits through AI and automation by 2028.

Insurance Business Performance

The UK Motor business maintained a strong advantage in pricing, claims, and customer retention, while European operations returned to combined profitability. The company's Other UK insurance lines, including Household, Travel, and Pet, performed extremely well, with growing scale and margin. The non-UK Motor business is expected to double, driven by momentum in areas like Admiral Money, Europe, and other lines of insurance in the UK.

3. NewsRoom

Card image cap

How The Admiral Group (LSE:ADM) Story Is Shifting As Analysts Rework Valuation Assumptions

Apr -08

Source:

Card image cap

Top UK Dividend Stocks To Consider In April 2026

Apr -03

Source:

Card image cap

Director/PDMR Shareholding

Mar -25

Source:

Card image cap

Notice of Annual General Meeting and Annual Report and Accounts

Mar -25

Source:

Card image cap

Director/PDMR Shareholding

Mar -12

Source:

Card image cap

How The Admiral Group (LSE:ADM) Story Is Shifting As Analyst Valuations Diverge

Mar -11

Source:

Card image cap

Admiral Group H2 Earnings Call Highlights

Mar -05

Source:

Card image cap

Admiral Group PLC (AMIGF) Full Year 2025 Earnings Call Highlights: Record Profits and Strategic ...

Mar -05

Source:

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

Stock-Card
PZU

A-Score: 7.7/10

Value: 7.7

Growth: 7.3

Quality: 7.2

Yield: 8.8

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Mapfre

A-Score: 7.3/10

Value: 5.2

Growth: 6.4

Quality: 5.8

Yield: 7.5

Momentum: 10.0

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Admiral

A-Score: 7.0/10

Value: 3.8

Growth: 6.0

Quality: 7.5

Yield: 7.5

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
BAWAG

A-Score: 6.7/10

Value: 3.2

Growth: 7.2

Quality: 5.8

Yield: 8.8

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
Beazley

A-Score: 6.6/10

Value: 6.7

Growth: 6.7

Quality: 9.1

Yield: 3.8

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
VIG

A-Score: 6.4/10

Value: 5.2

Growth: 4.2

Quality: 5.0

Yield: 6.9

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.57$

Current Price

32.57$

Potential

-0.00%

Expected Cash-Flows