Admiral Group LON: ADM reported first-half profit before tax of £429 million, down 18% from the same period a year earlier but broadly in line with the second half of 2025, as disciplined underwriting helped offset softer conditions in the UK motor insurance market.
The insurer posted a group combined ratio of 78.5%, compared with 77.7% a year earlier, while its loss ratio remained at 57%. Milena said the results reflected “discipline, strong underwriting performance, and real strategic progress,” adding that underwriting improvements extended across the company’s major product lines.
Risk count increased by 600,000 during the period, with UK motor broadly stable and double-digit growth in other businesses. Group turnover was flat year-over-year but rose more than 10% from the second half of 2025, reflecting high-single-digit UK motor rate increases and continued expansion elsewhere.
UK Motor Pricing and Underwriting
UK Insurance profit before tax was £485 million, down from £584 million in the first half of 2025. Rachel, Admiral’s new group CFO, said the reduction was primarily driven by lower earned premiums in UK motor and a higher reinsurance charge during softer market conditions.
UK motor profit before tax was £457 million, roughly £100 million below the prior-year period. Turnover in the business fell 5% year-over-year, though it was 11% higher than in the second half of 2025 following rating actions taken during the first half.
Admiral increased UK motor rates by high single digits in the first half, ahead of the wider market, according to Alistair. Those increases are expected to earn through during the second half of 2026 and into 2027. Despite the higher pricing, the motor portfolio and Admiral’s share of new business remained broadly flat, supported by retention, pricing optimization, MultiCover and improvements to online customer journeys.
Alistair said market motor prices had risen by low single digits since the end of 2025, leaving them broadly flat year-over-year after declines through 2025. He cited an EY forecast for a 108% combined ratio in the UK motor market during 2026, indicating that industry pricing would need to rise further to support profitability.
Claims frequency was broadly flat compared with 2025, while claims severity was running at historic mid-single-digit averages, Admiral said. The company expects 2026 burn-cost inflation to be in the mid-single digits, broadly consistent with 2025.
Growth Outside UK Motor
Admiral’s other UK personal-lines businesses continued to expand. Household, travel and pet insurance profits rose 12% to £28 million, with total risks across those products reaching 4 million, up 11% year-over-year.
Travel insurance customers rose 26%, despite disruption to demand from events in the Middle East. Alistair said Admiral supported approximately 2,000 customers affected by the disruption and waived policy exclusions at the onset, resulting in an estimated £3 million claims impact. Pet insurance customer growth was 17% year-over-year.
The company launched a new household insurance proposition under the More Than brand. Household conditions remained competitive and were supported by benign weather, although Admiral noted elevated subsidence risk associated with hot weather.
Admiral Money reported £13 million in profit while growing its lending portfolio to £2.5 billion. Rachel said profitability improved excluding a larger contribution from a back-book loan sale in the prior-year period. The business continued to use third-party capital arrangements, including back-book and forward-flow sales completed in the first half.
In Europe, reported motor profit was £17 million, including about £13 million in one-off benefits, primarily from a change in accounting for acquisition costs. On an underlying basis, European motor profit improved to about £5 million, while risks rose 5% year-over-year.
Costi said European turnover rose 11% and total risks reached 2 million. France’s L’Olivier business delivered double-digit motor risk growth and continued household growth, while Italy focused on restoring technical profitability and Spain expanded both direct and broker-distributed business. Admiral also moved to pan-European, multi-year reinsurance arrangements intended to improve capital efficiency and diversification.
Capital Returns and Outlook
Admiral’s solvency ratio stood at 190% after the Flock acquisition and shareholder distributions, compared with 193% at the end of 2025. The company said surplus capital remained broadly unchanged at £870 million.
The insurer returned £259 million to shareholders in the first half, representing a 79% payout ratio. This included an interim ordinary dividend of 70.5 pence per share and a planned £45 million share buyback, which was due to begin shortly. Admiral also spent £51 million purchasing approximately 1.5 million shares for employee plans.
- Group profit before tax: £429 million
- Group combined ratio: 78.5%
- UK Insurance profit before tax: £485 million
- Interim dividend: 70.5 pence per share
- Solvency ratio: 190%
Rachel said Admiral expects stronger group profitability in the second half than in the first, supported by positive trends in other personal-lines businesses and a lower reinsurance charge in UK motor, subject to weather and other claims volatility.
The company also submitted its internal capital model application to regulators during the second quarter. Subject to approval, Admiral expects over time to move toward the upper end of a 150% to 170% target solvency range.
Milena said Admiral remained positioned to grow when market conditions become more favorable, while continuing to invest in predictive artificial intelligence, generative AI pilots, telematics, electric-vehicle insurance and customer-facing digital tools. Customers holding two or more Admiral insurance or lending products increased 8% to 1.6 million.
About Admiral Group (LON:ADM)
Admiral Group plc is an established financial services provider offering motor, household, travel and pet insurance, as well as personal lending products, trading in five countries, namely the UK, France, Italy, Spain and the US. Founded in 1993, Admiral has grown to become an established multinational and multi-product insurer and is proud to be Wales' only FTSE 100 Company. As the leading personal motor insurance provider in the UK, Admiral continues to focus on technology and agility, diversifying the businesses, and progressing with the evolution of motor.
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