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Admiral Group PLC (GB:ADM)
LSE:ADM
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Admiral (ADM) AI Stock Analysis

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GB:ADM

Admiral

(LSE:ADM)

Rating:81Outperform
Price Target:
4,130.00p
▲(23.58% Upside)
Admiral's strong financial performance and impressive earnings call results are the primary drivers of its high stock score. The company's robust profitability, strategic growth initiatives, and attractive dividend yield further enhance its investment appeal. While technical indicators suggest potential overbought conditions, the overall outlook remains positive.

Admiral (ADM) vs. iShares MSCI United Kingdom ETF (EWC)

Admiral Business Overview & Revenue Model

Company DescriptionAdmiral Group plc (ADM) is a UK-based financial services company specializing in insurance and financial products. Established in 1993, the company primarily operates in the motor, home, travel, and pet insurance sectors. Admiral is known for its direct-to-consumer model, offering a range of insurance products through its online platform and call centers. The company also provides additional services including car finance and comparison services for insurance products, making it a comprehensive player in the insurance market.
How the Company Makes MoneyAdmiral generates revenue primarily through its insurance premiums, which are collected from policyholders across its various insurance products. The company utilizes a direct-to-consumer model, allowing it to minimize costs associated with intermediaries. Key revenue streams include motor insurance, home insurance, and travel insurance, with motor insurance being the most significant contributor. Additionally, Admiral earns income from ancillary services such as financial services and comparison tools. The company has also established partnerships with various automotive and financial institutions, enhancing its product offerings and customer reach. Furthermore, Admiral benefits from investment income derived from its reserves, which contributes to overall profitability.

Admiral Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call demonstrated a robust financial performance with record profits, significant growth in customer base, and strong performance in multiple segments including U.K. Motor and European operations. Despite some challenges in Italy and potential risks in Household insurance, the company's strategic advancements and technological improvements position it well for future growth.
Q2-2025 Updates
Positive Updates
Record Profit and Customer Growth
Admiral Group delivered a record profit of GBP 521 million, a 70% increase year-on-year, while adding 1 million customers, marking a 10% increase versus last year.
Strong Performance in U.K. Insurance
U.K. Motor insurance was the key driver, with a significant increase in underwriting results and a 3-point improvement in the combined ratio. U.K. Household and Admiral Money both doubled their profits.
Impressive Growth in Europe
Significant progress in European operations with profitable growth in France, a turnaround in Italy, and promising performance in Spain.
Enhanced Technological Capabilities
Continuous optimization of machine learning models, focus on claims beyond pricing, and promising initial results from GenAI pilots.
High Employee and Customer Satisfaction
Strong Net Promoter Score above 50% and high employee retention with Admiral ranking in the top 25 best places to work worldwide.
Strong Capital Position and Dividend Increase
Reported a robust solvency position and declared a much larger interim dividend of over 60% to 115p a share.
Negative Updates
Challenges in Italy
The Italian business, ConTe, faced challenges but showed signs of recovery with a 13-point improvement in the combined ratio.
Impact of Market Conditions on U.K. Motor
The U.K. Motor market showed a decrease in premiums due to favorable claims trends, which could impact future profitability if not adjusted.
Potential Impact of Subsidence Risk in Household Insurance
Provision for elevated subsidence risk due to particularly dry weather, which could affect future performance in Household insurance.
Company Guidance
During the first half of 2025, Admiral Group reported a record pretax profit of GBP 521 million, marking a 69% year-on-year increase, primarily driven by the U.K. Motor insurance segment, which experienced strong underwriting results. The group's customer base expanded by 1 million to a total of 13% growth year-on-year across the U.K. insurance sector. Admiral's combined ratio improved by 3 points, with the U.K. Household and Admiral Money both doubling their profits. Admiral maintained pricing discipline despite a softening market, reflecting a strong Net Promoter Score above 50%. The company's expense ratios improved across U.K. Motor, U.K. Household, and Europe, and Admiral Money saw a 25% increase in on-balance sheet loans to GBP 1.3 billion. The group announced a significant increase in the interim dividend by over 60% to 115p per share. Additionally, the group continued to enhance its data and technology capabilities, optimizing machine learning models for pricing and claims, while exploring the potential of Generative AI to improve customer experience and operational efficiencies.

Admiral Financial Statement Overview

Summary
Admiral has shown strong financial performance with significant revenue growth and robust profitability metrics. Despite a zero EBIT margin in 2024, the company maintains a healthy EBITDA margin and improved net profit margin. The balance sheet reflects improved leverage and strong return on equity, while cash flow statements show positive cash generation with room to enhance cash flow efficiency.
Income Statement
85
Very Positive
Admiral has demonstrated strong revenue growth with a noticeable increase from £1.22 billion in 2019 to £4.87 billion in 2024. The gross profit margin remains robust at over 98% for 2024, indicating efficient cost management and strong profitability. However, the EBIT margin for 2024 is 0%, which is concerning, though the EBITDA margin remains healthy at 19.56%. The net profit margin has improved significantly to 13.63% in 2024, showing enhanced profitability.
Balance Sheet
78
Positive
The company's debt-to-equity ratio has improved over the years, standing at 1.02 in 2024, reflecting a balanced leverage. The equity ratio is at 17.24%, suggesting moderate stability with some room for improvement. Return on equity is strong at 48.41%, indicating effective use of shareholders' equity to generate profits.
Cash Flow
80
Positive
Admiral's free cash flow growth rate from 2023 to 2024 is 10.69%, reflecting positive cash generation. The operating cash flow to net income ratio is 0.56 for 2024, showing reasonable cash flow efficiency. The free cash flow to net income ratio stands at 0.34, which indicates decent free cash flow relative to net income but suggests potential for improvement.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.87B3.55B1.52B1.56B1.30B
Gross Profit4.81B3.51B1.52B1.56B1.30B
EBITDA924.70M501.50M429.20M776.20M837.20M
Net Income663.30M338.00M286.50M593.50M528.80M
Balance Sheet
Total Assets7.94B7.10B6.22B6.18B5.76B
Cash, Cash Equivalents and Short-Term Investments3.60B3.14B297.00M372.70M272.50M
Total Debt1.39B1.21B1.03B776.20M611.40M
Total Liabilities6.57B6.10B5.27B4.78B4.64B
Stockholders Equity1.37B991.80M954.20M1.41B1.11B
Cash Flow
Free Cash Flow224.80M203.10M210.90M468.30M732.60M
Operating Cash Flow369.00M279.00M309.50M537.50M775.70M
Investing Cash Flow-144.20M-75.90M29.30M74.70M-226.80M
Financing Cash Flow-257.90M-171.80M-399.70M-544.60M-481.30M

Admiral Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3342.00
Price Trends
50DMA
3305.82
Positive
100DMA
3227.90
Positive
200DMA
2895.85
Positive
Market Momentum
MACD
36.14
Positive
RSI
43.71
Neutral
STOCH
-1.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ADM, the sentiment is Neutral. The current price of 3342 is below the 20-day moving average (MA) of 3433.71, above the 50-day MA of 3305.82, and above the 200-day MA of 2895.85, indicating a neutral trend. The MACD of 36.14 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of -1.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ADM.

Admiral Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£10.24B12.3865.36%5.75%22.62%106.27%
80
Outperform
£19.95B29.4310.13%6.28%-19.71%-53.86%
77
Outperform
£1.44B8.0315.18%12.83%8.78%-38.83%
74
Outperform
£4.73B6.5722.59%3.18%6.00%-24.29%
68
Neutral
$17.81B11.8710.24%3.74%9.75%1.30%
66
Neutral
26.11%-29.43%
$5.81B9.7516.60%2.69%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ADM
Admiral
3,342.00
696.19
26.31%
GB:BEZ
Beazley
785.50
37.91
5.07%
GB:DLG
Direct Line Insurance
304.80
128.97
73.35%
GB:LRE
Lancashire Holdings
592.00
20.17
3.53%
GB:AV
Aviva plc
656.40
194.54
42.12%
HCXLF
Hiscox
17.10
2.21
14.84%

Admiral Corporate Events

Business Operations and Strategy
Admiral Group Chair Acquires Shares in Strategic Move
Neutral
Aug 14, 2025

Admiral Group plc has announced a transaction involving Mike Rogers, the Chair and a person discharging managerial responsibilities, who acquired ordinary shares of the company. This acquisition, conducted on the London Stock Exchange, reflects a strategic move under a Share Acquisition Agreement, potentially impacting the company’s market positioning and stakeholder interests.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Admiral Group Reports Strong H1 2025 Results with 69% Profit Increase
Positive
Aug 14, 2025

Admiral Group reported a strong performance in the first half of 2025, with a 69% increase in pre-tax profit from continuing operations, reaching £521 million. The company saw a 10% rise in customer numbers, driven by growth in UK insurance, particularly in the motor and household sectors. Despite a slight reduction in European customer numbers, Admiral’s strategic focus on pricing and service quality contributed to improved profitability. The company also announced the sale of its US motor insurance business, Elephant, to J.C. Flowers & Co., expected to close in Q4 2025. Admiral’s interim dividend increased to 115.0 pence per share, reflecting its robust financial performance and commitment to shareholder returns.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

DividendsBusiness Operations and Strategy
Admiral Group’s Leadership Engages in Share Acquisition
Positive
Jul 15, 2025

Admiral Group plc announced transactions involving the acquisition of ordinary shares by Michael Brierley, a Non-Executive Director, and his wife, Rachel Brierley, through a dividend reinvestment trading plan. These transactions, conducted on the London Stock Exchange, highlight the ongoing engagement of the company’s leadership with its financial instruments, potentially indicating confidence in the company’s future performance.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

Dividends
Admiral CFO Acquires Shares Under Dividend Reinvestment Plan
Neutral
Jun 16, 2025

Admiral Group plc announced that its Chief Financial Officer, Geraint Jones, has acquired ordinary shares under the company’s dividend reinvestment plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

DividendsBusiness Operations and Strategy
Admiral Group Director Acquires Shares in Strategic Transaction
Neutral
Jun 16, 2025

Admiral Group plc announced a transaction involving William Roberts, a Non-Executive Director, who acquired ordinary shares through a dividend reinvestment trading plan. This transaction, conducted on the New York Stock Exchange, reflects the company’s ongoing financial strategies and could impact shareholder value and market perception.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

Executive/Board Changes
Admiral Group Announces Board Appointment of Karen Green
Neutral
May 20, 2025

Admiral Group Plc, a company in the insurance sector, has announced a significant board change. Karen Green, an Independent Non-Executive Director at Admiral, has been appointed to a similar role at Hamilton Insurance Group, Ltd., which is publicly traded on the New York Stock Exchange. This appointment may enhance the strategic insights and governance capabilities of both companies.

The most recent analyst rating on (GB:ADM) stock is a Sell with a £2300.00 price target. To see the full list of analyst forecasts on Admiral stock, see the GB:ADM Stock Forecast page.

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