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Admiral to lose its admiral

Wednesday's results will show how strong a business Admiral's founder is leaving behind
August 13, 2015

Wednesday's update from Admiral (ADM) will be the first since the insurance company's charismatic founder Henry Engelhardt announced he was to step down from the top job with the memorable exhortation: "Don't bury me yet, guys!" Mr Engelhardt, who has been with the business since 1991, is to be replaced within the year by current chief operating officer David Stevens. During the outgoing boss's tenure, the company has amassed more than 4m customers and 7,000 staff.

IC TIP: Hold at 1,436p

Mr Engelhardt leaves at a difficult time for the motor insurance market, with tough competition on premiums and the number of claims increasing. Low petrol costs mean drivers are spending more time on the road, while the 'whiplash' claim has also made a comeback. Investors will be looking to see how far the business has been able to push through higher premiums in this tough environment.

Competition is also fierce among the price comparison websites. All eyes will be on Admiral's Confused.com as well as its previously loss-making US business.