Admiral Group (LSE:ADM) has posted continuing operations pre-tax profit of £429.2 million for the six months to 30 June, down 18% from the record first half of 2025 and broadly in line with the second half of last year.
The UK-based insurer, best known for car insurance, said the decline was driven by lower earned premiums in UK Motor following rate reductions made during the first half of 2025, alongside higher quota share reinsurance charges.
Group turnover was flat year-on-year as 11% growth in other personal lines offset a 5% fall in UK Motor turnover from lower average premiums.
European Insurance swung to a £17.2 million profit from a £0.6 million loss a year earlier, helped by 5% customer growth and a one-off £13.1 million gain from deferring acquisition costs, while Admiral Money profit rose to £13.3 million as gross loan balances grew 39%.
Group risks increased 5% to 12 million, with growth outside UK Motor running at 10%.
"We are pricing for long-term sustainable growth with our UK Motor business having increased rates earlier than the market, following a softer period in the cycle", said chief executive Milena Mondini de Focatiis.
Earnings per share from continuing operations fell to 109.0p from 132.5p, and return on equity dropped to 45% from 57%.
The Board declared an interim dividend of 70.5p per share, down from 115.0p a year earlier, alongside a £45 million share buyback, taking total shareholder distributions to £258.8 million.
The solvency ratio stood at 190%, against 194% a year earlier, after absorbing the completed acquisition of Flock and employee share scheme purchases.
The dividend will be paid on 2 October, with an ex-dividend date of 3 September.
News Intelligence what this means for the company
Admiral Group's first-half profit fell 18% to £429.2m as UK Motor earnings contracted following rate cuts made in early 2025, though European Insurance returned to profit and Admiral Money grew strongly. The decline is cyclical rather than structural: management has already raised UK Motor rates ahead of the market to restore sustainable pricing, and growth outside UK Motor (10%) offset the core business contraction, leaving group turnover flat year-on-year.
The profit decline reflects a deliberate pricing reset in a softening cycle, not deteriorating underwriting or market share loss. With return on equity at 45% (down from 57%) and solvency at 190%, Admiral retains substantial capital to fund growth and shareholder returns, though the interim dividend cut to 70.5p from 115.0p signals management's preference to preserve capital as rates stabilize.
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