Admiral has reported an 18 per cent drop in pre-tax profit to £429.2m in the first half of the year, as softer UK car insurance premiums weighed on its overall performance.
The insurance giant’s turnover remained broadly flat at £3.11bn, reflecting the challenging conditions that have persisted across the UK motor market over the past 18 months.
Group chief executive Milena Mondini said the market had been very soft at the end of 2024 and 2025, prompting the insurer to raise prices at the start of this year to keep pace with claims inflation.
Mondini told City AM she expects the pricing action to pay off in the second half of the year, giving investors some reassurance that the near-term headwinds are being actively managed.
One of the brighter spots in the results was Admiral’s electric vehicle insurance book, which grew by 27 per cent during the period, reflecting surging consumer interest in EV ownership across the UK.
Mondini said Admiral has been “very competitive for EVs” from a very early stage, adding that EVs are “a great feature for the planet” and a natural area of focus for the business going forward.
Admiral also reported increased demand for its free subscription service designed to help customers manage the costs of electric vehicle ownership, further embedding the insurer in the growing EV market.
Despite the domestic motor pressures, Admiral’s European business delivered a notable turnaround, swinging to a profit of £17.2m compared with a £0.6m loss recorded in the same period last year.
Mondini said she was “particularly proud” of France, which was running at a “very strong margin” and delivering double-digit growth, underscoring the expanding contribution of the European arm to group results.
Customer numbers across the group grew by 5 per cent, with Admiral surpassing 12 million customers for the first time, a milestone that signals continued commercial momentum despite the earnings pressure.
Admiral shares (ADM) rose 4.4 per cent in early trading on Thursday, and the stock has now climbed by more than a fifth since the beginning of this 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.”
Britzman added: “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.”