Admiral hit by PI costs

Admiral Insurance has posted pre-tax profits of £193m, an increase of two per cent, in the six months to the end of June 2017.

Despite the rise, the insurer said the rising cost of personal injury claims, as a result of the revisions made to the Ogden rate, have hit profits. The changing rate weighed on profits last year, and Admiral said the impact had continued into 2017.

‘Most of the adverse impact from the increase in the costs of large injury claims was in our 2016 second half result,’ said its chief executive David Stevens in a statement. ‘However, some extra costs carry into 2017. In these circumstances, we are happy to report a marginal increase in profitability and to deliver a more material increase in the underlying dividend.’

Admiral also reported a 15% rise in group turnover to £1.45bn, and net revenue of £550m, up eight per cent.