Profits surge at Admiral

In the UK motor insurance division, underlying profits (without the Ogden benefit) grew by 2 per cent thanks to a 9 per cent increase in the number of vehicles insured to 4.32m. However, the combined ratio (of claims as a percentage of premium income) deteriorated slightly from 80.3 per cent to 81.9 per cent, reflecting increased frequency in large bodily injury claims and damage claim inflation.

Turnover in household insurance grew sharply after total premiums written rose by 36 per cent, although the combined ratio slipped from 103.5 per cent to 120.4 per cent, which resulted in a loss of £3m. Most of this reflected increased bad weather and subsidence claims, without which there would have been a profit of £7.7m.

UK price comparison website Confused.com pushed profits up by 40 per cent and the overall price comparison business delivered profits of £9m – up £2m on the previous year. But progress was held back by the US website, which struggled as other advertisers increased spending.

Analysts at Numis are forecasting pre-tax profits of £491m and adjusted EPS of 136p for the year to December 2019.