Admiral Group PLC (LON:ADM) saw its European insurance business turn a profit in the first half as strong UK demand drove a 9% rise in profits, although the insurer cautioned over ‘hard’ Brexit risks.
The FTSE 100-listed firm saw its group statutory pre-tax profit rise to £211mln for the six months to June 30, up from £195mln a year earlier, as group turnover increased by 14% to £1.66bn.
READ: Admiral posts 45% jump in 2017 profits on record turnover as customer numbers rise
The motor and home insurer saw its customer numbers increase by 14% in the first-half 6.23mln, up from 5.46mln a year earlier.
Admiral said its UK motor profits grew strongly to £249.5mln, up from £224.2mln, while UK Household saw very strong growth in turnover and customer numbers, although it posted a £1.9mln loss, against a £1.6mln profit a year earlier, affected by the weather during the period
Admiral said its European insurance businesses recorded an aggregate profit of £2.5mln in the period, against a £5.0mln loss a year earlier.
However, the group - which has picked Madrid for its European Union base after Brexit - said Britain's exit from the EU brought additional risks to the company, particularly the possibility of a 'no deal' Brexit.
The firm is paying an interim dividend of 60.0p, representing a normal dividend of 40.8p per share and a special dividend of 19.2p per share, a 7% increase on last year’s 56.0p interim payout.