BullDog wrote:Hmmm, thanks for flagging up Admiral Group. Present situation/share price/yield has got me thinking.....
What are you thinking?
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BullDog wrote:Hmmm, thanks for flagging up Admiral Group. Present situation/share price/yield has got me thinking.....
everhopeful wrote:BullDog wrote:Hmmm, thanks for flagging up Admiral Group. Present situation/share price/yield has got me thinking.....
What are you thinking?
BullDog wrote:Perhaps buying a few ADM tomorrow/this week. Maybe. It's one of those shares that I have half an eye on that usually looks at bit too expensive and doesn't quite yield enough to attract me. When a price reset comes along, sometimes I can't resist clicking the buy button. Looking at ADM as a possible addition to the income-ish part of the portfolio, a little opportunistically. Interested in others thoughts here. Thanks.
monabri wrote:
Down nearly 13% today ... can't see any news to suggest why the sell off?
monabri wrote:34% down year to date....Quite a sentiment downturn.
Dod101 wrote:monabri wrote:34% down year to date....Quite a sentiment downturn.
The market is really spooked, now quoted at under £20.
Dod
monabri wrote:Dod101 wrote:monabri wrote:34% down year to date....Quite a sentiment downturn.
The market is really spooked, now quoted at under £20.
Dod
Sub £20 per share is lower than the shareprice in March 2020 when the markets were in Covid sell off mode!
Sabre Insurance are repricing new business (they're vehicle insurance only by the look of it). Admiral (and Direct Line Gp) have other areas of business. However, as vehicle insurance is a mandatory legal requirement then I would guess that we shall see car insurance price increases to follow to maintain margin.
Perhaps the ADM (not so) special dividends might be challenged in coming years, however there is 6.7% "yield on offer" for new buyers even discounting the specials.
monabri wrote:Dod101 wrote:monabri wrote:34% down year to date....Quite a sentiment downturn.
The market is really spooked, now quoted at under £20.
Dod
Sub £20 per share is lower than the shareprice in March 2020 when the markets were in Covid sell off mode!
Sabre Insurance are repricing new business (they're vehicle insurance only by the look of it). Admiral (and Direct Line Gp) have other areas of business. However, as vehicle insurance is a mandatory legal requirement then I would guess that we shall see car insurance price increases to follow to maintain margin.
Perhaps the ADM (not so) special dividends might be challenged in coming years, however there is 6.7% "yield on offer" for new buyers even discounting the specials.
AndyPandy wrote:
I hold, having bought a couple of tranches in March but have taken the view that Mr Market has punished ADM exceptionally badly after the Sabre news, so have rustled up some top-up funds as a short-term mispricing punt. It does seem to be a severe overreaction, especially on top of the significant drop already this year. We shall see...
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.
monabri wrote:
.... have been increasing insurance policy costs to restore profitability.
teecee90 wrote:monabri wrote:
.... have been increasing insurance policy costs to restore profitability.
Tell me about it.....!!
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