Admiral’s meek performance sparks investor share sell off
INSURER Admiral disappointed investors yesterday after revealing poor underlying growth and a sluggish one per cent profits.
Shares in the business, which sponsors the Wales national rugby team, closed down 5.5 per cent, making Admiral the biggest faller on the FTSE 100 yesterday.
“We have yet to see firm evidence of an inflection point and a return to premium growth,” Admiral boss Henry Engelhardt said.
The company’s saving grace was a £73m boost from reserves set aside to cover claim losses, which were drawn down by the business.
Pre-tax profits rose to £183.3m for the six months ending June, but total insurance premiums were down nine per cent from a year earlier.
Meanwhile, Admiral announced a new chief financial officer yesterday, promoting deputy CFO Geraint Jones to the role. His predecessor, Kevin Chidwick, is moving to the US to take the helm of Admiral’s Elephant Auto Insurance business.