Shares in the UK’s biggest car insurers were boosted today as it emerged there was an increase in vehicle premiums in the second quarter this year, according to a report.
Admiral (LON:ADM) was lifted 4.75% to 1,522p to stand atop the FTSE100, while Direct Line (LON:DLG) advanced 0.81% to 359.6p.
RSA gained 2.23% to sit at 440.5p.
Broker Canaccord pulled out some key points from the report published by the AA.
Shoparound motor pricing was up 5% quarter on quarter in the three months to June, it was revealed. That’s a big rise from Q1, which saw a 1% rise.
The broker forecasts a 5% rise in motor premiums for the full year.
And the City broker added it will review its forecasts when the firms post first half numbers, beginning with Direct Line, on August 4.
It rates Direct Line a ‘buy’ with target price of 350p and Admiral ‘sell’ with a target of 1,335p.