- Both insurers beat 1H forecasts
- Dividends also better than hoped
- Shares up 35% and 45% this year
After the disappointment of Beazley (BEZ) cutting its growth forecast yesterday (13 August), it was a good day for investors in insurers Admiral (ADM) and Aviva (AV.) with both firms posting positive updates and raising their dividends more than expected.
Admiral shares climbed 250p or 7.5% to £36.18, taking year-to-date gains to more than 35%, while Aviva shares added 27p or 4% to 686p bringing year-to-date gains to more than 45%, with both stocks registering new 2025 highs.
‘EXCELLENT’ RESULTS
For the six months to the end of June, Admiral reported a 69% increase in profit from continuing operations to £521 million and a 72% increase in EPS (earnings per share) to 132.5p, despite holding revenue flat as it took a disciplined approach to pricing.
‘We have delivered another excellent first half with strong execution across all strategic objectives,’ commented chief executive Milena Mondini de Focatiis.
The firm added a million customers across its diversified businesses due to its focus on offering competitively priced cover in a market characterised by falling rates.
Profit in UK motor insurance was up 56% while profit in household insurance and Admiral Money more than doubled, allowing the firm to declare a higher-than-expected interim payout of 115p per share consisting of a normal dividend of 85.9p and a special dividend of 29.1p per share.
Aviva also reported positive first-half results, with operating profit up 22% to £1.07 billion thanks to the integration of Direct Line which has transformed the combined business into a UK market leader with more than 21 million customers.
‘Aviva’s performance in the first half of 2025 was outstanding, growing operating profit by 22% and extending our track record of delivery’, said chief executive Amanda Blanc.
The firm raised its interim dividend by 10% to 13.1p against 11.9p last year, ahead of market expectations.
