Admiral Group Plc (LSE:ADM) should report an improved motor premium picture with its half-year numbers, according to the analysts at Citi.
Lower damage inflation and lighter claims frequency are noteworthy for the FTSE 100 insurer, with estimates that repair volumes are 8% below pre-COVID levels likely being conservative, said the US bank.
Admiral’s policy count growth should also continue into the second half of the year, while Citi expects profit forecasts to be shown as conservative, with the bank 9% ahead of the consensus of £682 million.
AJ Bell added that as of late 2023, Admiral had 9.7 million customers, of which 4.9 million were on its car insurance schemes. These figures are expected to be “the first numbers” that investors will turn to tomorrow.
“They will then switch quickly to issues such as competition, pricing and claims price inflation, as well as accident frequency,” analysts added.
Focus will also be placed on Admiral’s combined and solvency ratios, AJ Bell said, with figures lower and higher than 100% reflecting profitability and reduced risk, respectively.