Boss hails electric vehicle market as EV insurance surged 27% and European operations swung to profit

Admiral saw its profits slide as the insurance giant was dragged down by reduced earned premiums in its UK motor business.

The group’s pre-tax profit declined by 18 per cent to £429.2m in the first half of the year, while turnover held steady at £3.11bn.

Milena Mondini, group chief executive, told City AM the market had been particularly subdued at the end of 2024 and into 2025, prompting the insurer to raise prices at the start of the year to keep pace with claims inflation, adding that she anticipates this will bear fruit in the second half of the year.

Within its motor division, Admiral recorded a 27 per cent increase in its electric vehicle (EV) insurance book, alongside growing demand for its complimentary subscription service aimed at offsetting the costs of EV ownership.

Mondini said Cardiff-based Admiral has been “very competitive for EVs” from a very early stage as EVs are “a great feature for the planet”.

Notwithstanding the challenges facing its UK motor arm, its European operation swung to a profit of £17.2m, recovering from a £0.6m loss the previous year. Mondini said she was “particularly proud” of France, which was running at “very strong margin” and double‐digit growth.

Customer numbers climbed by 5 per cent, surpassing 12 million for the first time.

Admiral shares climbed 4.4 per cent in early trading on Thursday. The stock has gained more than a fifth in value since the beginning of the year.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “The headline profit decline only tells half the story. Yes, Admiral is feeling the impact of last year’s softer motor pricing, but under the hood, it’s navigating the turn in the cycle well.

“There are also encouraging signs that Admiral is becoming more than a UK Motor story. Household, Europe and Admiral Money are all moving in the right direction. Near-term earnings may remain a little uneven, but the route back to growth is becoming clearer, and the building blocks for a stronger 2027 are falling into place.”