City awaits verdict on Admiral’s strategy
CAR insurer Admiral will reveal whether its plan to hold off from getting dragged into a price war has paid off when it reports half-year results on Thursday.
The owner of Elephant and Bell saw revenues fall six per cent in the first three months of the year, saying it was not chasing market share as rivals cut the cost of their premiums by as much as 10 per cent.
Admiral said first quarter UK car insurance turnover was down nine per cent to £470m, with its overseas expansion reducing the overall decline to six per cent at £551m.
But while revenues are suffering, its profit margins are being given a boost.
Redburn analyst David Bracewell said he was expecting to see an increase in margins over the half-year.