Admiral Group has released its full-year 2025 results, recording an earnings per share figure of 115.5 pence, which exceeded analyst estimates by 3.4%. The company also set out an ambition to accelerate earnings growth beyond the 7.6% compound annual growth rate it achieved from 2020 through 2025.
On the bottom line, group profit before tax for the second half was broadly in line with expectations, while the full-year profit before tax topped consensus by 1.8%. The board proposed a final dividend of 90 pence per share, slightly ahead of the 89.3 pence analysts had expected. That payment comprises an ordinary dividend of 72.8 pence and a special dividend of 17.2 pence.
Admiral's core UK Motor operation produced a full-year profit before tax that came in 1.5% below consensus. The division reported a core combined ratio of 80.5%, 1.8 percentage points worse than the 78.7% anticipated by analysts. Management attributed part of that variance to reserve releases of 10%, which sat at the lower end of the guidance range of 10% to 15%.
Despite that, the current year loss ratio for UK Motor was 72.8%, outperforming forecasts by 1.3 percentage points. Policy numbers in the motor book rose to 5.83 million at the year end, an increase of 1.4% from the 5.75 million reported at the half-year and ahead of analyst expectations of 5.75 million.
Other businesses within Admiral's portfolio produced stronger outcomes. The UK Household division posted full-year profit before tax that exceeded consensus by 26.5%. The UK Travel and Pet segment returned a profit before tax of 7.9 million, versus consensus forecasts of break-even. Europe Insurance delivered 6.6 million in profit before tax, ahead of a 2 million consensus. Admiral Money, the lender arm, recorded full-year profit before tax 3.2% above consensus.
Looking forward, the group signalled an expectation of policy volume growth across its businesses and indicated that price increases are needed across the UK motor insurance market. Management also provided its first forecast for autonomous vehicle penetration, projecting that self-driving cars will account for roughly 4% of the total car fleet by 2035. Despite that anticipated shift, Admiral expects UK Motor premiums to grow over the next 20 years.
The results present a mixed picture: headline earnings beat and a dividend slightly ahead of forecasts provide positive momentum, but the UK Motor division's combined ratio and lower-than-expected reserve releases temper that upside. Other lines of business - including Household, Travel and Pet, Europe Insurance and Admiral Money - helped offset weakness in the motor book by delivering profits above consensus in the year.
Company outlook and strategic priorities
Admiral's stated goal of raising its earnings growth rate beyond the 7.6% CAGR seen over the past five years is central to the update. The company will pursue that objective while managing pricing and volume across its motor franchise, balancing the need for rate adjustments in the market with the evolution of vehicle technology over the next two decades.
Financial positioning and shareholder returns
The proposed final dividend of 90 pence per share, split between an ordinary and a special element, underscores the group's commitment to returning cash to shareholders. The dividend slightly surpasses the level analysts anticipated.
Admiral's full-year disclosures combine record per-share earnings with mixed divisional performance, and management has highlighted both near-term pricing dynamics in UK motor insurance and long-term technological trends that could influence premium trajectories.