Admiral profit slides as boss eyes push into EV insurance
Admiral suffered a drop in profit as the insurance giant was weighed down by lower earned premiums in its UK car business.
The group’s profit before tax fell by 18 per cent to £429.2m in the first half of the year, while turnover remained flat at £3.11bn.
Milena Mondini, group chief executive, told Morning Wire the market had been very soft at the end of 2024 and 2025, so the insurer increased prices at the beginning of the year to match claims inflation, adding she expects this to pay off in the second half of the year.
In its motor division, Admiral reported a 27 per cent rise in its electric vehicle (EV) insurance book as well as increased demand for its free subscription service designed to help with the costs of EV ownership.
Mondini said Admiral has been “very competitive for EVs” from a very early stage as EVs are “a great feature for the planet”.
Despite headwinds in its UK motor group, its European business swung to a profit of £17.2m, up from a £0.6m loss last year. Mondini said she was “particularly proud” of France, which was running at “very strong margin” and double‑digit growth. Customer numbers grew by 5 per cent, surpassing 12 million for the first time.
Admiral shares rose 4.4 per cent in early trade on Thursday. The stock is up by more than a fifth since the start of the year.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “The headline profit decline only tells half the story. Yes, Admiral is feeling the impact of last year’s softer motor pricing, but under the hood, it’s navigating the turn in the cycle well.
“There are also encouraging signs that Admiral is becoming more than a UK Motor story. Household, Europe and Admiral Money are all moving in the right direction. Near-term earnings may remain a little uneven, but the route back to growth is becoming clearer, and the building blocks for a stronger 2027 are falling into place.”