Admiral Group (ADM) H1 2025 earnings summary

Executive summary

• Pre-tax profit rose 69% year-over-year to £521 million in H1 2025, with EPS up 72% to 132.5p and return on equity at 57%; 1 million new customers added, a 10% increase to 11.4 million.

• UK Motor Insurance was the main profit driver, with profit up 56%, supported by disciplined growth, strong underwriting, and positive claims trends.

• UK Household and Admiral Money both more than doubled profits, with strong customer and turnover growth.

• Announced sale of US business (Elephant Insurance), expected to complete in Q4 2025; US results now classified as discontinued.

• Continued investment in data, technology, and AI to enhance efficiency and customer experience, with Net Promoter Score above 50%.

Financial highlights

• Group pre-tax profit: £521 million (H1 2024: £308 million), up 69%; EPS 132.5p, up 72%; interim dividend 115.0p, up 62%.

• Return on equity 57%; solvency ratio at 194% post-dividend; total cash and investments at £5.43 billion.

• Group turnover flat at £3.1 billion; insurance revenue up 18% to £2.47 billion; customer base grew 10% to 11.4 million.

• UK insurance profit up £221 million; home insurance profit more than doubled with a combined ratio of 84%.

• Admiral Money profit more than doubled to £16.3 million, with on-balance sheet loans up 25% to £1.28 billion.

Outlook and guidance

• Customer and top-line growth expected in all operations except Italy; H2 turnover likely below H1 due to lower average premiums and seasonality.

• Group profit to be supported by 2024 underwriting year earnings in UK Motor, with continued strong results from UK home, Admiral Money, and France.

• Projected claims inflation for 2025 is 5%-7% versus 2024; 2025 margins expected to be lower than 2024 but still profitable.

• Market prices in Motor expected to increase in the near future, subject to claims trends.

• Share buybacks for employee plans anticipated in late 2025 or early 2026.