Admiral Group 2022 Interim Results Highlights.

[idpickering]

The Group delivered another solid set of results in the first half of 2022 against a backdrop of challenging market conditions and
an elevated inflationary environment. Following on from two outlier years of higher profits resulting from Covid and related
factors, Group profits have returned to a level more comparable to pre-Covid periods whilst delivering positive change in a
number of key metrics. Highlights are as follows:
• 9.1 million Group customers at the end of the first half of 2022, a 35% increase from 6.7 million at the end of the first
half of 2019 and with over 1 million customers added since half year 2021
• Group pre-tax profits of £251 million, 48% lower than the exceptional first half of 2021, but 19% higher than H1 2019
• UK Insurance business year-on-year growth in both turnover (+3%) and customer numbers (+12%), despite significant
rate increases in UK Motor in response to elevated claims inflation
• UK Insurance profit of £322 million, 41% lower than 2021 (£544 million) with higher current period claims and lower
reserve releases and profit commission, but 26% ahead of H1 2019
• Strong performance from UK Household, with pre-tax profit of £7 million (£17 million excluding the impact of exceptional
weather in the period)
• A worse overall International Insurance result (loss of £22 million v loss of £1 million in H1 2021) than recent years,
4
primarily driven by a more significant loss in US Motor Insurance (due to much higher claims inflation) offsetting a small
profit in European motor insurance
• Strong performance from Admiral Money, with a 68% increase in loans balances compared to 30 June 2021, continued
favourable default experience and a first small profit for the first half of 2022

Dividend

The Board has declared an interim dividend of 60.0 pence per share, made up of a normal dividend of 44.2 pence and a special
dividend of 15.8 pence per share. The payment represents 90% of earnings per share for the first half.
The Board has also declared a further special dividend of 45.0 pence per share reflecting the final payment of the phased return
to shareholders of the proceeds from the sale of the Penguin Portals comparison businesses. This payment, along with the
previous two payments of 46.0 pence per share, brings the total amount returned to shareholders to just over £400 million.
The total interim dividend, including the further special dividend is 105.0 pence per share, made of a normal dividend of 44.2
pence per share and a special dividend of 60.8 pence per share.
Payment will be on 30 September 2022. The ex-dividend date is 1 September 2022 and the record date is 2 September 2022.

https://admiralgroup.co.uk/sites/defaul ... ns.pdf?v1=

Also posted on Company News here; viewtopic.php?p=521226#p521226

I topped up my ADM holdings earlier this year, and my account is set to buy more of ADM shares scheduled for later this month. That might change before then of course.

Ian.

[idpickering]

Further to my comment above about maybe buying more ADM shares this month, seeing as these results are hardly great from a HYP perspective, what with a lowering of the dividend, I will just let it be in my HYP.

Ian.

[idpickering]

Fwiw, ADM are up Just over 3% on market opening. It seems some like these results perhaps?
I get that share price movements are not what HYP is about, but they’re still interesting imho nonetheless.

Ian.

[Dod101]

Fwiw, ADM are up Just over 3% on market opening. It seems some like these results perhaps?
I get that share price movements are not what HYP is about, but they’re still interesting imho nonetheless.

Ian.

I commented recently that unless Admiral was going bust they seemed to be oversold They have been rallying a bit in the last week or two and if they are rising today it is in relief that the results are not worse. Or of course that they believe Admiral's RNS that they have produced a set of 'solid' results.

In fairness to them they did indicate at the time of the 2021 results that profits would be down and of course that indicated a likely cut in the dividend.

Dod

[idpickering]

Fwiw, ADM are up Just over 3% on market opening. It seems some like these results perhaps?
I get that share price movements are not what HYP is about, but they’re still interesting imho nonetheless.

Ian.

I commented recently that unless Admiral was going bust they seemed to be oversold They have been rallying a bit in the last week or two and if they are rising today it is in relief that the results are not worse. Or of course that they believe Admiral's RNS that they have produced a set of 'solid' results.

In fairness to them they did indicate at the time of the 2021 results that profits would be down and of course that indicated a likely cut in the dividend.

Dod

Thanks for your input Dod. I’m still undecided as what to do on this re topping up my ADM holdings again? We’ll see nearer the time.

Ian.

[idpickering]

I must admit I'm surprised by the current 10% rise in Admiral Group's SP. Not that rise matters hereabouts of course.

Are any of our team here buyers of ADM currently I wonder?

Ian.

[tjh290633]

I must admit I'm surprised by the current 10% rise in Admiral Group's SP. Not that rise matters hereabouts of course.

Are any of our team here buyers of ADM currently I wonder?

Ian.

Ian, they have been ruled out for me because of their contribution to income. Were the final dividend to have a similar reduction, they would be top of the rankings. Actually, since the final will not have a special dividend related to the disposal, they are now eligible.

TJH

[Dod101]

I must admit I'm surprised by the current 10% rise in Admiral Group's SP. Not that rise matters hereabouts of course.

Are any of our team here buyers of ADM currently I wonder?

Ian.

Ian, they have been ruled out for me because of their contribution to income. Were the final dividend to have a similar reduction, they would be top of the rankings. Actually, since the final will not have a special dividend related to the disposal, they are now eligible.

TJH

Yes that is the last instalment of the Extra Special Dividend. I need to read the release more carefully. What did they say about prospects for the rest of the year?

Dod

[tjh290633]

Yes that is the last instalment of the Extra Special Dividend. I need to read the release more carefully. What did they say about prospects for the rest of the year?

Dod

Not a lot that I can see from a quick scan through. They show increases on the same period in 2019, and in Group Highlights they say:

The Group delivered another solid set of results in the first half of 2022 against a backdrop of challenging market conditions and an elevated inflationary environment. Following on from two outlier years of higher profits resulting from Covid and related factors, Group profits have returned to a level more comparable to pre-Covid periods whilst delivering positive change in a number of key metrics. Highlights are as follows:

That's fairly near the start, so best read from the horse's mouth. https://www.investegate.co.uk/admiral-g ... 0000H9039/

TJH

[Dod101]

Yes that is the last instalment of the Extra Special Dividend. I need to read the release more carefully. What did they say about prospects for the rest of the year?

Dod

Not a lot that I can see from a quick scan through. They show increases on the same period in 2019, and in Group Highlights they say:

The Group delivered another solid set of results in the first half of 2022 against a backdrop of challenging market conditions and an elevated inflationary environment. Following on from two outlier years of higher profits resulting from Covid and related factors, Group profits have returned to a level more comparable to pre-Covid periods whilst delivering positive change in a number of key metrics. Highlights are as follows:

That's fairly near the start, so best read from the horse's mouth. https://www.investegate.co.uk/admiral-g ... 0000H9039/

TJH

Thanks. I guess that the share price got a bit ahead of itself with the low claims from Covid but the market seems to think there is only one way from here. Personally I think they will have a good grip on what is going on as they seem to run a good business. If I were Ian, I would be topping up now if he can find the wherewithal.

Dod

[idpickering]

Yes that is the last instalment of the Extra Special Dividend. I need to read the release more carefully. What did they say about prospects for the rest of the year?

Dod

Not a lot that I can see from a quick scan through. They show increases on the same period in 2019, and in Group Highlights they say:

The Group delivered another solid set of results in the first half of 2022 against a backdrop of challenging market conditions and an elevated inflationary environment. Following on from two outlier years of higher profits resulting from Covid and related factors, Group profits have returned to a level more comparable to pre-Covid periods whilst delivering positive change in a number of key metrics. Highlights are as follows:

That's fairly near the start, so best read from the horse's mouth. https://www.investegate.co.uk/admiral-g ... 0000H9039/

TJH

Thanks. I guess that the share price got a bit ahead of itself with the low claims from Covid but the market seems to think there is only one way from here. Personally I think they will have a good grip on what is going on as they seem to run a good business. If I were Ian, I would be topping up now if he can find the wherewithal.

Dod

My thanks to you both for airing your views on this.

As of now, Admiral Group account for being 3.8% in capital value terms of my 28 share HYP. Dod, I do have the wherewithal. I will be buying more ADM later this month. That will be an 18% top up in capital value terms, and thereafter ADM will still not be excessively out of line in capital value weight terms in my HYP. I'm ok with that, for a long term hold going forward.

Ian.