Admiral Group PLC (LON:ADM) has promised shareholders a bumper interim dividend payout as interim profits are higher than expected as motor claims remain subdued due to people driving less during the Covid-19 lockdowns.
“On the basis of these preliminary results and a very strong solvency position, the proposed 2021 interim dividend is expected to be in the range of 110 to 125p per share,” said the statement.
That implies a rise of at least 56% and potentially 77% at the top end based on the interim dividend of 70.5p a year ago.
In addition, Admiral added it will also pay put special dividends of £400mln over the next two years following the sale of Penguin Portals for £460mln in April.
The FTSE 100 group said it now expects to make profits of at least £450-500mln in the first half of 2021, which reflects both a release of earlier loss provisions and lower claims outstripping £110mln reductions in premiums.
One note of caution was that the motor insurer added it does not expect to repeat the first half's level of reserve releases and profit commission over the rest of the year.
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