Admiral Group Plc shares rose 3.4% to 2,958p after the insurer reported record full-year profits, though results came in slightly below some analyst expectations as the UK motor market proved softer than anticipated.
Group profit before tax rose 16% to £958 million, broadly in line with consensus, with UK motor delivering £1 billion of profit for the first time but missing expectations as reserve releases came in lower than a year earlier.
The year included the integration of More Than completed, as well as increased investment in technology, data and artificial intelligence, with early AI pilots showing "encouraging signs of improved efficiency and enhanced customer outcomes".
Chief executive Milena Mondini de Focatiis said the FTSE 250 group was refreshing its strategy to focus more on economies of scale and efficiencies while pursuing disciplined growth in the UK motor market, acknowledging that the market had been softer for longer than expected.
The board proposed a final dividend of 90p per share, comprising a normal dividend of 72.8p and a special dividend of 17.2p, taking the full-year total to 205p, up 7%.
Broker Peel Hunt said profits were around 5% short of its forecasts