PART OF THE WEEK: City salivating over Admiral results
Five months have passed since the market learned of Admiral.
So the City will be salivating at the prospect of discussing the insurer’s half-year results on Wednesday.
The top-tier firm, which offers auto, auto, home, travel and pet insurance along with financial and legal services, expects to show considerable progress since its last update.
In March, Admiral’s 2022 results revealed a sharp drop in profit as higher claims and the rising cost of servicing them hit the group.
Matt Britzman, equity analyst at Hargreaves Lansdown, said: ‘It’s safe to say markets weren’t impressed by Admiral’s full-year results in March. Profits fell short of expectations as rising claims and rising cost to maintain weighed on performance.’
Next week, analysts expect the insurer to shed light on prices, the number of customers and the frequency of accidents.
They will also be attentive to the news about the dividend. It paid 157 pence a share last year, much less than the 279 pence it paid out in 2021. Expectations are for a total dividend of 119 pence a share next year.
Other big-name insurers to report on include Legal & General, whose boss Sir Nigel Wilson leaves later this year.
“Sir Nigel is stepping down at the end of this year, but he will be looking to come out on a high after almost 12 years in the role,” said Russ Mold of investment platform AJ Bell. Wilson has recently indicated that he might be interested in a political career.
