Admiral’s full-year turnover (an in-house revenue measure) fell 1% to £5.90bn in 2025.
Underlying profit before tax rose 16% to a record £958mn, supported by customer growth of 7% and strong performance in UK Motor.
The proposed final dividend is 90p per share, comprising a normal dividend of 72.8p and a 17.2p special dividend, taking the total dividend for the year to 205p (2024: 192p).
The Group’s post-dividend solvency ratio, which measures balance sheet strength, decreased from 203% to 193%, reflecting continued capital returns to shareholders.
Profit growth is expected to be “flatter” in 2026 as less profitable business written in 2025 feeds through.
The shares rose 2.2% in early trading.
Our view
Admiral’s shares have come under pressure in recent months as investors begin to look ahead to a softer phase for the motor insurance market and question the potential for AI-driven disruption across the sector. Even so, the group had a strong year, and attention now turns to 2026 and beyond.
However, the strong results seen in 2025 are largely linked to favourable market conditions in 2023 and 2024, now earning through. Pricing became more competitive across 2025, which has started to place pressure on margins beneath the surface, and profit growth is likely off the cards in 2026 (though this has been expected for some time).
Encouragingly, Admiral has already implemented low single-digit increases ahead of the wider market, suggesting conditions may be starting to firm following last year’s softer phase. If this marks the early stages of a turn in the pricing cycle, the outlook into 2027 could be more promising.
UK motor insurance remains the core and most significant unit. Admiral has used its strong position to reduce prices over the past 18 months, supporting another solid period of customer growth. While this could weigh on margins in the coming year, prices are still higher than they were a couple of years ago, and strong cost control has helped support a healthier profit outlook than in the recent past.
Investment in data, technology and digital capabilities remains a key differentiator. Admiral continues to enhance its pricing sophistication and customer journeys, with growing use of AI. Selling predominantly through direct channels also provides access to richer customer data, which can support more consistent pricing decisions over time.
The business model continues to rely heavily on reinsurance, allowing Admiral to share underwriting risk with partners. This approach enables the group to grow when pricing conditions are favourable without placing undue strain on the balance sheet, helping to smooth earnings through the cycle while retaining exposure to profitable business.
Dividends remain an important part of the investment case. Capital levels are robust and, despite the potential for some earnings volatility in the near term as the 2025 underwriting year earns through, the forward yield appears attractive and broadly supported by medium-term profitability. Though nothing is guaranteed.
We believe Admiral retains several competitive advantages over many of its peers, including its data-led underwriting approach and strong reinsurance relationships. These strengths are not fully reflected in the current valuation, which, in our view, looks attractive. Key risks remain from claims inflation, competitive pricing and potential regulatory pressure.
Environmental, social and governance (ESG) risk
The financials sector is medium-risk in terms of ESG. Product governance is the largest risk for most companies, especially those in the US and Europe with enhanced regulatory scrutiny. Data privacy and security are also an increasingly important risk for banks and diversified financial firms. Business ethics, ESG integration and labour relations are also worth monitoring.
According to Sustainalytics, Admiral’s overall management of material ESG issues is strong.
There is board-level oversight and a strong whistleblower programme. But the group’s product governance has room for improvement with no official responsible marketing policy in place as well as a lack of regular training and reporting on its responsible product programme. Admiral’s management of data privacy is average, but lacks oversight and regular assessment.
Admiral key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.