Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Admiral Group (ADM)

Share latest information on individual companies and hot news discussions. LSE Main Market companies only
Forum rules
No penny shares or promotional posts
88V8
Lemon Half
Posts: 5769
Joined: November 4th, 2016, 11:22 am
Has thanked: 4098 times
Been thanked: 2560 times

Re: Admiral Group (ADM)

#453483

Postby 88V8 » October 27th, 2021, 10:07 am

'Admiral slumped today after Munich Re sold 12,100,000 shares in the insurer in a placing.
According to traders, the shares were placed at 2,940p each and UBS was the bookrunner.' [Sharecast]

That's 4% of the shares in issue.

Munich Re has been very supportive of Admiral. I hope this does not presage an unravelling of the relationship.

V8

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Admiral Group (ADM)

#453494

Postby Dod101 » October 27th, 2021, 10:42 am

88V8 wrote:'Admiral slumped today after Munich Re sold 12,100,000 shares in the insurer in a placing.
According to traders, the shares were placed at 2,940p each and UBS was the bookrunner.' [Sharecast]

That's 4% of the shares in issue.

Munich Re has been very supportive of Admiral. I hope this does not presage an unravelling of the relationship.

V8


That is very interesting and has to be of some concern. They disclose in the 2020 Annual Report that Munichre held just over 30 million shares representing 10.1% so they have sold about 40% of their holding. As you say Munichre has been very helpful and supportive of Admiral both as a shareholder but also and more importantly as what some might see it, as a very generous reinsurer, allowing Admiral what I see as preferential terms of trade. That is the backbone of Admiral's success.

I cannot find any announcement but then I cannot find Admiral's list of RNS anyway.

Dod
Last edited by Dod101 on October 27th, 2021, 10:50 am, edited 1 time in total.

88V8
Lemon Half
Posts: 5769
Joined: November 4th, 2016, 11:22 am
Has thanked: 4098 times
Been thanked: 2560 times

Re: Admiral Group (ADM)

#453499

Postby 88V8 » October 27th, 2021, 10:48 am

Dod101 wrote:I cannot find any announcement but then I cannot find Admiral's list of RNS anyway.

RNS list here https://www.lse.co.uk/rns/ADM/ Nothing since 22 Oct.

I would have thought that Admiral will say something. The shares have come off 20% or so in recent weeks.

V8

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Admiral Group (ADM)

#453514

Postby idpickering » October 27th, 2021, 11:35 am

88V8 wrote:
Dod101 wrote:I cannot find any announcement but then I cannot find Admiral's list of RNS anyway.

RNS list here https://www.lse.co.uk/rns/ADM/ Nothing since 22 Oct.

I would have thought that Admiral will say something. The shares have come off 20% or so in recent weeks.

V8


I'm not concerned about this event at all, nor will it budge me from continuing to hold my ADM shares for the long term.

Ian.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Admiral Group (ADM)

#453599

Postby Dod101 » October 27th, 2021, 2:24 pm

88V8 wrote:
Dod101 wrote:I cannot find any announcement but then I cannot find Admiral's list of RNS anyway.

RNS list here https://www.lse.co.uk/rns/ADM/ Nothing since 22 Oct.

I would have thought that Admiral will say something. The shares have come off 20% or so in recent weeks.

V8


On the other Admiral thread there is a piece posted by monabri which provides reassurance I think that Munichre is not cutting its ties at least not in a business sense anyway. The arrangement with Munichre is very important to Admiral as the coinsurance and reinsurance is a source of valuable risk free commissions for Admiral.

Dod

Cornytiv34
Lemon Pip
Posts: 98
Joined: November 8th, 2016, 12:36 pm
Has thanked: 18 times
Been thanked: 60 times

Re: Admiral Group (ADM)

#453671

Postby Cornytiv34 » October 27th, 2021, 5:47 pm

As a major reinsurer of many companies wordwide and the recent series of catastrophes, they are preparing liquid/short dated assets to meet the claims.
Mike

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Admiral Group (ADM)

#453780

Postby Dod101 » October 28th, 2021, 8:59 am

Cornytiv34 wrote:As a major reinsurer of many companies wordwide and the recent series of catastrophes, they are preparing liquid/short dated assets to meet the claims.
Mike


Frankly, I doubt that very much. £360 million or so is not going to make much difference to their cash requirements. I think it much more likely that they are simply cashing in on a very good investment. They did something similar a few years back with their Admiral holding. Which series of catastrophes do you have in mind?

Dod

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Admiral Group (ADM)

#480752

Postby idpickering » February 15th, 2022, 4:26 pm

Electronic Communications Letter

The Company has today posted a letter to all its shareholders who currently receive hard copy shareholder information concerning the option to instead receive electronic communications in the future. A copy has also been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. A copy of the letter can also be viewed on the Investor Relations/Shareholder Services section of the Company's website at http://www.admiralgroup.co.uk.


https://www.investegate.co.uk/admiral-g ... 1303H4997/

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Admiral Group (ADM)

#483947

Postby idpickering » March 3rd, 2022, 7:29 am

Admiral Group plc announces full year results with growth in Group profit and customers for the year ended 31 December 2021

Comment from Milena Mondini de Focatiis, Group Chief Executive Officer:

‘’Once again, we have delivered excellent service for a larger number of customers and a strong set of results, due to unusual market conditions, Admiral’s underwriting discipline and a focus on doing the common, uncommonly well.

In 2021 we improved in all of our key metrics, including exceeding 8 million customers, increasing customer loyalty and recording exceptional profits of £769 million.

We continued to evolve our market-leading core insurance competencies in claims and risk-selection. For example, the increased adoption of machine learning models has improved our pricing effectiveness and agility and put us in a good position to embrace changes such as the new FCA general insurance pricing practices.

The strong performance of UK Motor insurance is the key driver of our results. We also continued to expand our customer proposition. In 2021 alone, beyond UK Motor we added more than half a million customers, now representing around 40% of total Group customers. We grew by double digits in both our UK Household and International businesses, despite challenging market conditions abroad, and our Loans stock balance is now larger than pre-Covid levels. We are pleased to see the results of our ability to export some of our competitive advantages to these new businesses and we are also planting seeds for further diversification in the longer term through Admiral Pioneer, for example with small business insurance.

Our aim is to help more customers than ever to look after their future, and to do this better every day. We are also keen to contribute to secure the future of our communities by substantially increasing our investment and committing to net zero by 2040 at the latest.

I would like to thank all my colleagues for their hard work and continued focus on our customers. They are the key to Admiral’s success and have made my first year as Group CEO so enjoyable.’’

And later;

Dividend

The Board has proposed a final dividend of 118.0 pence per share (2020: 86.0 pence per share) representing a normal dividend (65% of post-tax profits) of 42.2 pence per share and a special dividend of 75.8 pence per share. The special dividend includes 46.0 pence per share as the second of three payments related to the Penguin Portals disposal proceeds. The dividend will be paid on 6 June 2022. The ex-dividend date is 5 May 2022 and the record date is 6 May 2022.


https://www.investegate.co.uk/admiral-g ... 0000H8342/

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Admiral Group (ADM)

#483957

Postby Dod101 » March 3rd, 2022, 8:10 am

Thanks Ian

Once again a great result from Admiral. Good dividend plus another tranche of the capital return from the sale of a business, now wrapped up in the Special Dividend with, it would seem, another and final payment to come.

Dod

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Admiral Group (ADM)

#483989

Postby idpickering » March 3rd, 2022, 10:05 am

Dod101 wrote:Thanks Ian

Once again a great result from Admiral. Good dividend plus another tranche of the capital return from the sale of a business, now wrapped up in the Special Dividend with, it would seem, another and final payment to come.

Dod


You're welcome Dod, and I agree with you. It seems the overall market thinks otherwise, with the ADM sp being down 8.7% as I type.

This comment, lifted from the ADM comments segment on HL might explain the downturn:

Admiral reported a rise in 2021 profits driven by its motor insurance business and the release of reserves set aside for claims during the Covid pandemic, but reported a loss at its international insurance business.

The home and car insurer said pre-tax profit rose 26% to £769m. The motor insurance division posted profit of £871m, up 27% and net revenue increased to £1.55bn from £1.31bn in 2020.

However, the international operation swung to a £11.6m loss from an £8.8m profit a year earlier. Admiral said Covid-related accident frequency benefits "returned to more normal levels and competitive activity increased in most markets". Shares in the company fell 7.3% on the news.

"Whilst we budgeted a loss for 2021, the actual result was a little worse than plan. A number of things contributed to the outturn, not least quite a big unwind of the lower Covid-related frequency seen in the 2020 loss ratios and highly competitive conditions in most markets which led to reduced average premium per customer," Admiral said.


https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

Either way, I'm not overly concerned, and shall remain a happy ADM shareholder.

Ian.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Admiral Group (ADM)

#484016

Postby Dod101 » March 3rd, 2022, 10:53 am

idpickering wrote:
Dod101 wrote:Thanks Ian

Once again a great result from Admiral. Good dividend plus another tranche of the capital return from the sale of a business, now wrapped up in the Special Dividend with, it would seem, another and final payment to come.

Dod


You're welcome Dod, and I agree with you. It seems the overall market thinks otherwise, with the ADM sp being down 8.7% as I type.

This comment, lifted from the ADM comments segment on HL might explain the downturn:

Admiral reported a rise in 2021 profits driven by its motor insurance business and the release of reserves set aside for claims during the Covid pandemic, but reported a loss at its international insurance business.

The home and car insurer said pre-tax profit rose 26% to £769m. The motor insurance division posted profit of £871m, up 27% and net revenue increased to £1.55bn from £1.31bn in 2020.

However, the international operation swung to a £11.6m loss from an £8.8m profit a year earlier. Admiral said Covid-related accident frequency benefits "returned to more normal levels and competitive activity increased in most markets". Shares in the company fell 7.3% on the news.

"Whilst we budgeted a loss for 2021, the actual result was a little worse than plan. A number of things contributed to the outturn, not least quite a big unwind of the lower Covid-related frequency seen in the 2020 loss ratios and highly competitive conditions in most markets which led to reduced average premium per customer," Admiral said.


https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

Either way, I'm not overly concerned, and shall remain a happy ADM shareholder.

Ian.


EPS up 26% despite that international loss? They must be doing something right. Their international business has not I think been an outstanding success but notwithstanding that they keep producing the goods.

I suspect that the share price reaction is partly at least because of their comment that they expect lower Group profit for 2022 caused at least partly because of an expected increase in claims as a result of the unwinding of the Covid effect. So the 2021 results may be as good as it gets for some time. Note also that we are to get the final tranche of the capital return in the form of an enhanced special dividend at the interim stage for the 2022 results so that next year the payout will be a good bit lower.

Dod
Last edited by Dod101 on March 3rd, 2022, 11:05 am, edited 1 time in total.

monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Re: Admiral Group (ADM)

#484017

Postby monabri » March 3rd, 2022, 10:53 am

Down 12.5% on a relatively good update. Seems a bit OTT.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Admiral Group (ADM)

#484021

Postby Dod101 » March 3rd, 2022, 11:07 am

monabri wrote:Down 12.5% on a relatively good update. Seems a bit OTT.


I would think that overdone, surely? Maybe a good time to buy.

Dod

idpickering
The full Lemon
Posts: 11276
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2468 times
Been thanked: 5763 times

Re: Admiral Group (ADM)

#484070

Postby idpickering » March 3rd, 2022, 1:54 pm

Dod101 wrote:
monabri wrote:Down 12.5% on a relatively good update. Seems a bit OTT.


I would think that overdone, surely? Maybe a good time to buy.

Dod


I agree with you both, but sadly I don't have money available in the right account to take advantage of today's drop in the ADM sp.

Note to self.....keep some powder dry for such events as these. ;)

Ian.

monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Re: Admiral Group (ADM)

#484082

Postby monabri » March 3rd, 2022, 3:08 pm

2538p , down 14.2%.

77ss
Lemon Quarter
Posts: 1271
Joined: November 4th, 2016, 10:42 am
Has thanked: 233 times
Been thanked: 414 times

Re: Admiral Group (ADM)

#484093

Postby 77ss » March 3rd, 2022, 3:54 pm

monabri wrote:Down 12.5% on a relatively good update. Seems a bit OTT.


Maybe, but:

We expect that Group profit in 2022 will be lower than 2021 and 2020.


Not encouraging.

MrDividend
Posts: 7
Joined: March 5th, 2022, 1:56 pm
Has thanked: 3 times
Been thanked: 24 times

Re: Admiral Group (ADM)

#484534

Postby MrDividend » March 5th, 2022, 2:17 pm

Dod101 wrote: Their international business has not I think been an outstanding success


Howdy.

I'm new to LemonFool so haven't worked out how to attribute a quote yet. Will fix that next time, but the above quote is from Dod101.

I think Admiral's international businesses are one of its most overlooked features and the reason for that is that they're still in scale-up mode.

For example, the international business have doubled customers in the last five years and tripled them in seven years, so that's not too shabby.

And as they've grown, they've gained economies of scale and more data to better price risks. That's led to a combined ratio that has gone from 170% a decade ago to around 115% today, with a clear and consistent downward trend.

My guess is that within another five years or so, the international businesses will probably start to be profitable as a group, and at that point they stop being a drag on Admiral's profits and instead begin to generate material profits and cash.

They currently service about 22% of group customers, so with a faster than UK growth rate that could be 25-30% in five years. if they can get profitability anywhere near the core UK business once they switch from pricing for growth to pricing for profit, they should (fingers crossed) give Admiral a very healthy boost towards the end of this decade.

John (Admiral shareholder and possible fanboy)
Last edited by tjh290633 on March 5th, 2022, 11:54 pm, edited 1 time in total.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Admiral Group (ADM)

#484550

Postby Dod101 » March 5th, 2022, 4:20 pm

MrDividend wrote:
Their international business has not I think been an outstanding success


Howdy.

I'm new to LemonFool so haven't worked out how to attribute a quote yet. Will fix that next time, but the above quote is from Dod101.

I think Admiral's international businesses are one of its most overlooked features and the reason for that is that they're still in scale-up mode.

For example, the international business have doubled customers in the last five years and tripled them in seven years, so that's not too shabby.

And as they've grown, they've gained economies of scale and more data to better price risks. That's led to a combined ratio that has gone from 170% a decade ago to around 115% today, with a clear and consistent downward trend.

My guess is that within another five years or so, the international businesses will probably start to be profitable as a group, and at that point they stop being a drag on Admiral's profits and instead begin to generate material profits and cash.

They currently service about 22% of group customers, so with a faster than UK growth rate that could be 25-30% in five years. if they can get profitability anywhere near the core UK business once they switch from pricing for growth to pricing for profit, they should (fingers crossed) give Admiral a very healthy boost towards the end of this decade.

John (Admiral shareholder and possible fanboy)


Click the quotation marks and you should get the full quote that you may be looking for.

The international business was profitable a year or two back but, unlike the UK, they seem to be having difficulty in gaining sustained traction. I suspect that it is not quite as easy as they might have expected. OTOH I am surprised how profitable the UK business is, although some of that is down to the unusually advantageous arrangements they have with their main reinsurer, Munichre. Presumably similar arrangements are in place for the international business although I cannot find explicit details.

This year is going to be good for shareholders as far as dividends are concerned, thanks partly at least to the Covid effect on underwriting results and of course the capital distribution promised with the 2021 Final and the Interim for 2022. However thereafter it may take a year or two to recover the likely drop in profitability.

I am a happy shareholder, at least in comparison to some of my holdings.

Dod

BullDog
Lemon Quarter
Posts: 2445
Joined: November 18th, 2021, 11:57 am
Has thanked: 1966 times
Been thanked: 1197 times

Re: Admiral Group (ADM)

#484560

Postby BullDog » March 5th, 2022, 5:04 pm

Hmmm, thanks for flagging up Admiral Group. Present situation/share price/yield has got me thinking..... :lol:


Return to “Company Share news (LSE Main Market)”

Who is online

Users browsing this forum: No registered users and 8 guests