Admiral Group (AMIGY)
OTHER OTC:AMIGY
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Admiral Group
(OTC:AMIGY)
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Rating:73Outperform
Price Target:
$46.00
▲(12.14% Upside)
Action:ReiteratedDate:03/07/26
The score is driven primarily by solid financial performance (improving growth, margins and cash generation) and supportive valuation (moderate P/E with a high dividend yield). This is tempered by balance-sheet leverage risk, a mixed longer-term technical setup (below the 200-day), and a cautious 2026 outlook despite strong FY2025 execution.
Positive Factors
Cash generation
Admiral materially strengthened cash generation in 2025 with operating cash flow ~£711m and free cash flow ~£638m, converting ~0.9x of net income. This durable cash flow capacity funds dividends, buybacks, tech investment and M&A optionality, cushioning underwriting cycles and supporting capital returns.
Negative Factors
Rising leverage
Leverage increased materially in 2025, raising debt relative to equity. Elevated debt-to-equity boosts ROE but reduces balance-sheet flexibility, magnifies earnings volatility if underwriting weakens, and could constrain capital returns or require deleveraging in adverse claims or market conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Admiral materially strengthened cash generation in 2025 with operating cash flow ~£711m and free cash flow ~£638m, converting ~0.9x of net income. This durable cash flow capacity funds dividends, buybacks, tech investment and M&A optionality, cushioning underwriting cycles and supporting capital returns.
Read all positive factors
Admiral Group (AMIGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.73B
Dividend Yield7.1%
Average Volume (3M)3.81K
Price to Earnings (P/E)13.4
Beta (1Y)0.16
Revenue Growth25.96%
EPS Growth111.78%
CountryUS
Employees15,432
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.49
Shares Outstanding306,304,700
10 Day Avg. Volume0
30 Day Avg. Volume3,813
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)6.78
Price to Sales (P/S)1.79
P/FCF Ratio15.31
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda21.69
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.16
Revenue Forecast (FY)$6.93B
Admiral Group Business Overview & Revenue Model
Company Description
Admiral Group plc provides car insurance products in the United Kingdom, Spain, Italy, France, India, and the United States. The company operates through UK Insurance, International Insurance, Admiral Loans, and Other segments. It underwrites car,...
How the Company Makes Money
Admiral Group generates revenue primarily through the underwriting of insurance policies. The company collects premiums from its customers when they purchase insurance coverage, which forms the core of its revenue stream. Additionally, Admiral ben...
Admiral Group Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial performance in FY2025 — record group and U.K. Motor profits, robust capital and dividend increases, clear progress on AI and data, and improving diversification (Admiral Money, Other Personal Lines and Europe). Near‑term headwinds were acknowledged: U.K. Motor pricing pressure in 2025, higher loss ratios and claims inflation, some one‑off impacts in Europe, and a cautious 2026 profit outlook (expected to be broadly flat) as reserve and underwriting dynamics normalize. Overall, the strategic direction (AI acceleration, multi‑product growth, selective M&A, and a revised capital return framework) and strong balance sheet underpin a positive medium‑term outlook despite cyclical and market‑pricing risks.Positive Updates
Record Group Profit
Group profit reached a record GBP 958 million in FY2025, up 16% year‑on‑year (or up 28% excluding the Ogden impact).
Negative Updates
U.K. Motor Premium Pressure and Turnover Decline
Average premiums fell after deliberate price reductions (H1 2025), leading to turnover down ~7% in U.K. Motor despite customer growth; market average premiums estimated to have declined ~10% in 2025.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Group Profit
Group profit reached a record GBP 958 million in FY2025, up 16% year‑on‑year (or up 28% excluding the Ogden impact).
Read all positive updates
Company Guidance
Management guided that 2026 should be broadly flat vs 2025 (2025: record group profit £958m, +16% YoY / +28% ex‑Ogden) while highlighting key metrics: a 2025 group combined ratio of 80% (3pts higher than 2024, ~2pts from Ogden), solvency ratio c.193% (post‑internal‑model target 150–170%), proposed final dividend 90p bringing total to 205p (~£620m, +7%), ordinary dividend set at 65% of earnings with historic total payout guidance ~90%, and share‑scheme buys (trust bought ~1m shares for ~£30m in H2 and expects ~3m buys in 2026); operationally they expect disciplined U.K. Motor pricing (2025 discounted 12‑month booked loss ratio ~78%, undiscounted ~85%), U.K. customer base 9.6m (+9% YoY) with group customer base growth ~7% and >1.6m multi‑product customers, group NPS >50 (U.K. >55), reserve releases ~10% YoY with reserves near the top percentile (moving toward mid‑range in 2026), Europe returning to profitability (regional combined ratio 94%, Motor profit £39m on a wall‑account), Admiral Money profits doubled, AI scale (150+ gen‑AI initiatives supporting >4,000 colleagues; predictive AI has delivered >£100m of incremental loss‑ratio value) and efficiency targets of >£100m p.a. by 2028.Admiral Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.45B | 4.87B | 3.51B | 3.02B | 1.55B |
| Gross Profit | 5.57B | 4.62B | 3.37B | 2.87B | 1.55B |
| EBITDA | 1.10B | 951.80M | 521.80M | 416.60M | 781.80M |
| Net Income | 726.33M | 663.30M | 338.00M | 286.50M | 997.90M |
Balance Sheet | |||||
| Total Assets | 9.01B | 7.94B | 7.10B | 8.94B | 8.36B |
| Cash, Cash Equivalents and Short-Term Investments | 300.57M | 3.60B | 3.14B | 2.67B | 458.00M |
| Total Debt | 1.89B | 1.39B | 1.21B | 1.03B | 776.20M |
| Total Liabilities | 7.57B | 6.57B | 6.10B | 7.98B | 6.95B |
| Stockholders Equity | 1.44B | 1.37B | 991.80M | 885.80M | 1.41B |
Cash Flow | |||||
| Free Cash Flow | 638.10M | 224.80M | 203.10M | 366.50M | 175.40M |
| Operating Cash Flow | 710.77M | 369.00M | 279.00M | 465.10M | 244.60M |
| Investing Cash Flow | -430.85M | -144.20M | -75.90M | -101.00M | 387.80M |
| Financing Cash Flow | -272.01M | -257.90M | -171.80M | -425.00M | -564.80M |
Admiral Group Technical Analysis
Neutral
41.02
Price Trends
39.69
Positive
40.85
Positive
42.61
Negative
Market Momentum
1.06
Negative
51.78
Neutral
32.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMIGY, the sentiment is Neutral. The current price of 41.02 is below the 20-day moving average (MA) of 41.37, above the 50-day MA of 39.69, and below the 200-day MA of 42.61, indicating a neutral trend. The MACD of 1.06 indicates Negative momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 32.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMIGY.
Admiral Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.30B | 14.63 | 23.08% | 4.05% | 3.72% | -16.23% | |
77 Outperform | $24.93B | 10.77 | 16.13% | 2.10% | -0.63% | -30.68% | |
77 Outperform | $6.02B | 8.17 | 19.99% | 1.97% | 5.26% | 72.46% | |
74 Outperform | $10.61B | 13.60 | 18.25% | 6.71% | ― | -10.75% | |
73 Outperform | $12.73B | 13.45 | 51.59% | 7.10% | 25.96% | 111.78% | |
69 Neutral | $7.42B | 8.30 | 16.27% | 1.80% | 6.37% | 68.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
AMIGY
Admiral Group
41.52
6.59
18.87%
AFG
American Financial Group
127.32
5.66
4.66%
AXS
Axis Capital
100.38
3.06
3.14%
CINF
Cincinnati Financial
160.19
16.82
11.73%
RLI
RLI
57.65
-17.18
-22.96%
THG
Hanover Insurance
171.22
2.12
1.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.