Admiral sees profits boost after fewer accidents during lockdown

The insurer expects to return £400m to shareholders in special dividends over the next two years.


Shares in British motor insurer Admiral jumped 6% at one stage in London trading to a record high after the company said it was on track for a higher-than-expected first-half profit due to lower motor accident claims through pandemic lockdowns.


Admiral said pre-tax profit for the first half was likely to be between £450m and £500m when it reports results for the period next month.


The insurer said the boost came from fewer historic injury claims leading to a release of reserves and lower accident claims so far this year through lockdowns.

Shares in the company closed 2.5% higher at 07.15am.

Analysts at KBW said the surprise trading update indicated profits would be around double the company's normal run rate.

Admiral expects to return £400m to shareholders in special dividends over the next two years, the company said.

It completed the sale of its Penguin Portals unit in April.

It said it expects to pay an interim 2021 dividend of between 110 pence to 125 pence per share.

Admiral said it did not expect the lift in profits to be repeated in the second half of the year.

Car insurers in Ireland have faced intense political scrutiny of the motor premiums they charge during the pandemic.

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