Admiral Group (AMIGY) AI Stock Analysis

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Admiral Group

(OTC:AMIGY)

Rating:75Outperform

Price Target:

$54.00

▲(20.62% Upside)

Admiral Group's strong financial performance, highlighted by robust revenue growth and improved profitability, is the most significant factor driving the stock score. The positive sentiment from the latest earnings call further supports the company's growth trajectory. While technical indicators suggest the stock is overbought, the reasonable valuation and attractive dividend yield provide a balanced investment proposition.

Admiral Group (AMIGY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$13.82B

Dividend Yield6.96%

Average Volume (3M)6.63K

Price to Earnings (P/E)12.9

Beta (1Y)0.22

Revenue Growth25.96%

EPS Growth111.78%

CountryUS

Employees15,432

SectorFinancial

Sector Strength70

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)1.80

Shares Outstanding306,304,700

10 Day Avg. Volume7,147

30 Day Avg. Volume6,629

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.15

Enterprise Value/Revenue3.27

Enterprise Value/Gross Profit3.27

Enterprise Value/Ebitda16.70

Forecast

1Y Price Target

$54.00

Price Target Upside20.62% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Admiral Group Business Overview & Revenue Model

Company DescriptionAdmiral 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, van, household, and travel insurance, as well as offers unsecured personal and car loans, and legal services. It offers its insurance products under the Admiral, Apparent, Balumba, Bell, Diamond, Elephant, Elephant Auto, Gladiator, L'Olivier, Qualitas Auto, and WiYou Seguros brand names, as well as through Compare.com and ConTe.it. The company was founded in 1993 and is headquartered in Cardiff, the United Kingdom.

How the Company Makes MoneyAdmiral Group makes money primarily through the underwriting and selling of insurance policies. The company's key revenue streams include premiums collected from policyholders for car, home, travel, and pet insurance products. In addition to underwriting income, Admiral earns revenue through its ancillary products and services, such as policy add-ons and fees for administrative services. Another significant source of income is investment income, which is generated from the premiums held in reserve before claims are paid out. Admiral Group also benefits from strategic partnerships and joint ventures in various markets, allowing it to expand its customer base and product offerings. The company's focus on customer-centric innovations and digital solutions helps it maintain competitive pricing and attract a large number of policyholders, thereby contributing to its profitability.

Admiral Group Earnings Call Summary

Earnings Call Date:Aug 14, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Mar 05, 2026

Earnings Call Sentiment Positive

The call highlighted strong financial performance with record profits, robust growth in customer numbers, and significant achievements in U.K. Motor and Household segments. However, challenges remain in the Italian market and market pricing pressures in motor insurance. Overall, the positive aspects significantly outweigh the challenges.

Q2-2025 Updates

Positive Updates

Record Profit and Customer Growth

Admiral Group delivered a record profit of GBP 521 million, marking almost a 70% increase year-on-year, and added 1 million customers, a 10% increase versus last year.

Strong Performance in U.K. Motor Insurance

U.K. Motor insurance was a key driver of profit with a 3-point improvement in combined ratio and 5% customer growth year-on-year.

U.K. Household and Admiral Money Performance

U.K. Household and Admiral Money both doubled their profits, contributing significantly to the overall growth of the group.

Expansion in Europe

Successful turnaround of the Italian business and continued profitable growth in France.

High Return on Equity

The group achieved a return on equity close to 60%, significantly influenced by the profit increase.

Increased Interim Dividend

The interim dividend increased by over 60% to 115p a share, reflecting the strong financial performance.

Growth in Admiral Money

Admiral Money's on-balance sheet loans increased by 25% to GBP 1.3 billion, with profit more than doubling from GBP 7 million to GBP 16 million.

Strong Net Promoter Score

The group achieved a strong Net Promoter Score above 50%, reflecting improved customer experience.

Negative Updates

Decline in Turnover for U.K. Motor and Italy

Turnover was flat against the first half of last year, with reductions in turnover in Italy and U.K. Motor, although offset by an increase in U.K. Household.

Challenges in Italian Market

The Italian business saw a planned reduction in policy count due to strategic adjustments, impacting growth.

Market Pricing Pressure

Continued reductions in market prices for motor insurance due to better-than-expected claims trends, putting pressure on pricing strategies.

Provision for Total Loss Valuations

A provision of GBP 50 million was made to rectify historic cases of total loss valuations, accounting for around 3% of the total loss claims costs over the relevant period.

Company Guidance

In the first half of 2025, Admiral Group reported a record profit of GBP 521 million, marking a nearly 70% increase year-on-year, alongside a 10% rise in customer numbers, adding 1 million customers. The UK Motor insurance segment was a significant contributor to this profit growth, supported by positive claims trends. Additionally, UK Household and Admiral Money both doubled their profits. The group's focus on maintaining pricing discipline in a softening market and the successful integration of More Than contributed to this robust performance. The company also made strides in enhancing its data and technology capabilities, reflected in a strong Net Promoter Score above 50%. The interim dividend saw a substantial increase of over 60% to 115p per share, emphasizing Admiral's solid capital position and strategic execution. Despite the sale of its U.S. business, Elephant, Admiral continues to show strong financial and strategic progress across its operations in the UK and Europe, setting a strong foundation for future growth.

Admiral Group Financial Statement Overview

Summary

Admiral Group shows robust revenue growth and improved profitability with an increased net profit margin. The balance sheet indicates improved leverage management, though debt reliance remains a concern. Cash flow management is strong with consistent free cash flow growth, supporting the company's positive trajectory and stability.

Income Statement

Positive

The company has shown strong revenue growth with a significant increase from $3.55 billion in 2023 to $4.87 billion in 2024, indicating a robust expansion trajectory. Net profit margin has also improved from 9.5% in 2023 to 13.6% in 2024, reflecting enhanced operational efficiency. However, EBIT has not been consistent over the years, affecting the overall profitability stability.

Balance Sheet

Positive

The debt-to-equity ratio has improved from 1.22 in 2023 to 1.02 in 2024, showing better leverage management. The equity ratio remains relatively stable at around 17.3%, suggesting moderate financial stability. However, the return on equity is high at 48.4% in 2024, which is positive but may indicate potential risks of over-leverage.

Cash Flow

Positive

Free cash flow increased from $203 million in 2023 to $224.8 million in 2024, demonstrating a healthy cash generation capability. The operating cash flow to net income ratio is 0.56, indicating strong cash flow relative to net income. The company has effectively managed its capital expenditures and financing activities, contributing to a stable cash flow position.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.87B	3.55B	1.49B	1.55B	1.31B
Gross Profit	4.81B	3.51B	1.49B	1.55B	1.31B
EBITDA	951.80M	501.50M	403.10M	781.80M	527.10M
Net Income	663.30M	338.00M	286.50M	583.30M	528.80M
Balance Sheet
Total Assets	7.94B	7.10B	8.94B	8.36B	7.84B
Cash, Cash Equivalents and Short-Term Investments	3.60B	3.14B	2.67B	458.00M	363.60M
Total Debt	1.39B	1.21B	1.03B	776.20M	607.80M
Total Liabilities	6.57B	6.10B	7.98B	6.95B	6.72B
Stockholders Equity	1.37B	991.80M	954.20M	1.41B	1.11B
Cash Flow
Free Cash Flow	224.80M	203.10M	366.50M	175.40M	565.70M
Operating Cash Flow	369.00M	279.00M	465.10M	244.60M	608.80M
Investing Cash Flow	-144.20M	-438.20M	-101.00M	387.80M	-43.10M
Financing Cash Flow	-257.90M	-171.80M	-425.00M	-564.80M	-498.10M

Admiral Group Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price44.77

Price Trends

50DMA

44.58

Positive

100DMA

43.41

Positive

200DMA

37.96

Positive

Market Momentum

MACD

0.27

Positive

RSI

42.18

Neutral

STOCH

-15.51

Positive

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 44.77 is below the 20-day moving average (MA) of 46.35, above the 50-day MA of 44.58, and above the 200-day MA of 37.96, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of -15.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMIGY.

Admiral Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THG	79 Outperform	$6.35B	11.69	19.23%	2.00%	4.47%	102.98%
AFG	78 Outperform	$11.56B	15.21	17.17%	6.68%	3.35%	-14.16%
CINF	78 Outperform	$23.98B	13.30	13.44%	2.19%	9.64%	-15.08%
RLI	76 Outperform	$6.16B	19.19	19.49%	3.83%	10.29%	-4.70%
AMIGY	75 Outperform	$13.82B	12.94	63.86%	6.96%	25.96%	111.78%
AXS	72 Outperform	$7.62B	9.24	15.07%	1.79%	6.87%	43.53%
Sector *	68 Neutral	$17.80B	11.94	9.89%	3.74%	9.69%	1.17%

* Financial Sector Average

Performance Comparison

AMIGY

Admiral Group

44.77

10.12

29.21%

AFG

American Financial Group

137.66

11.92

9.48%

AXS

Axis Capital

98.09

23.09

30.79%

CINF

Cincinnati Financial

153.46

19.22

14.32%

RLI

68.23

-5.69

-7.70%

THG

Hanover Insurance

177.71

35.01

24.53%

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.Date of analysis: Aug 19, 2025