Admiral, the UK-based insurance giant, reported a significant drop in profit in the first half of 2025. The company's pre-tax earnings fell 18% to £429.2m compared to the same period the year before. Much of the decline was attributed to the soft market in the UK motor insurance sector at the end of 2024 and into early 2025. In response, the firm raised prices at the beginning of the year to keep up with rising claims inflation. A move Admiral's CEO, Milena Mondini, expects to start paying off in the second half of the year.
Despite the UK motor division’s challenges, Admiral found traction in electric vehicle (EV) insurance. The company reported a 27% rise in its EV insurance portfolio. Mondini described the company as being “very competitive for EVs” since early on. She noted that EVs are “a great feature for the planet.” In addition, the firm has developed a free subscription service. It assists with the costs of EV ownership. The firm is tapping into what appears to be growing consumer interest in the sector.
The company's European business saw a marked turnaround. It reported a £17.2m profit in the first half of 2025. The profit is up sharply from a £0.6m loss a year earlier. Mondini expressed pride in the performance of the French market. She noted it is on track for double-digit growth. The French market is operating at “very strong margin.” Customer numbers for the group also increased by 5%. The total now exceeds 12 million for the first time. This signals a broader diversification of its customer base.
Admiral’s shares rose 4.4% in early Thursday trading. They built on a stock price that has climbed by more than 20% since the beginning of 2025. Analyst Matt Britzman from Hargreaves Lansdown noted that the headline decline in profit was not the full picture. He highlighted Admiral’s progress in other areas. These include household and Admiral Money. He added that the firm is “navigating the turn in the cycle well.” He also said that “the route back to growth is becoming clearer.” He noted key building blocks now in place for stronger performance by 2027.