Admiral Group Plc (LSE:ADM) reported higher turnover and profit in the first six months of the year and said it believes the cycle “is turning.”
But the insurer cut the dividend by 15% to 51p from 60p in what it called a “challenging market”.
Milena Mondini de Focatiis, chief executive officer, said: “The group has once again delivered a solid performance and strong growth in the context of a challenging market, although we believe that the cycle is turning.
“Inflation persists, but we have navigated the cycle well, maintaining pricing discipline and a focus on medium-term profitability.”
Pre-tax profit in the six months to 30 June 2023 rose 4% to £233.9 million from £224.6 million the year before and turnover jumped 21% to £2.24 billion from £1.85 billion.
Admiral’s solvency ratio fell 3 percentage points to 182% from 185%.
The group’s UK motor business delivered a profit of £298 million.
The firm said as it increased prices its number of customers had fallen but added that it is on a “strong footing to leverage improving market conditions”.