Latest news with #AdmiralGroup
Bloomberg
21-07-2025
- Business
- Bloomberg
EU Sanctions Iranian Oil Tycoon for Role in Russian Trade
The European Union sanctioned a prominent Iranian oil trader and several of his companies, part of its latest round of measures targeting Russia over its war against Ukraine. Hossein Shamkhani, whose father is a senior adviser to Supreme Leader Ayatollah Ali Khamenei, was added to the bloc's sanctions list for his role in the Russian oil trade and as 'a central player' in the country's so-called 'shadow fleet,' the EU said. It also named his Dubai-based firms Admiral Group and Milavous Group Ltd.
Yahoo
08-07-2025
- Automotive
- Yahoo
Pay-monthly insurance options offer fair value, company bosses tell MPs
Bosses from major insurers have told MPs that customers opting to pay in monthly instalments rather than a lump sum upfront are being charged fairly for their cover. Appearing before the Treasury Committee, the bosses highlighted the admin costs and credit risks to firms when customers pay monthly for their cover. Concerns have been raised by consumer group Which? and others that some people are paying significantly more to split their insurance costs monthly. Jason Storah, CEO, UK general insurance at Aviva, told the hearing: 'We think that we charge a fair amount and just to bring it to life, on a £500 motor policy, a customer that is paying monthly will pay about £3 a month in the financing.' Mr Storah told MPs the insurer is not making any real money on the financing of pay-monthly products. Asked if he was confident his motor finance charges are reasonable, Alistair Hargreaves, CEO, UK insurance at Admiral Group, said: 'Yes, so our motor finance charges similarly are at the lower end of the range… they compare favourably to other sources of finance. 'In terms of when a consumer buys insurance, most of our customers and most customers for example in motor and home go on price comparison. And for most of the price comparison sites if they select to pay monthly they're looking at a monthly payment, they include the instalment charge as well as the underlying premium. 'And they, consumers, typically choose one of the cheapest three providers. 'So in addition to looking at the cost, we're also keen to be competitive. We've been very successful by being very competitive for consumers and getting to those top three slots in order that we can serve more customers.' Mr Hargreaves said: 'We look at fair value and when we look at annual customers and monthly payers the profitability on both groups of customers is very similar. 'So we look at the overall package to make sure that what customers are paying is fair.' Jon Walker, CEO, Axa Commercial, said: 'I have a similar position to Mr Hargreaves and Mr Storah on behalf of Axa. 'We believe offering an instalment option is a service that is good for customers.' He said: 'Relatively speaking, earnings from instalments represent a pretty small percentage of our overall earnings. 'There are additional costs that are incurred around the administration of providing instalment options, the reporting of it. There's also an element of risk the insurer takes. 'So if there is a period when a customer hasn't made their monthly payment they are still insured.' Asked how many weeks they would keep their insurance for, Mr Walker said: 'It would depend. Typically, a small number of weeks if there was a late payment. 'And obviously there's also a cost to insurers as well in terms of if a client pays upfront then that is money that can be invested and generate investment, income that doesn't exist on an instalment option. So there are real costs to insurers in the industry in providing instalments. But we do think it's a valuable product.' He later added: 'Proportionately, we don't make more money from customers that pay by instalments versus pay upfront.' Asked if not having a lump sum available to pay annually would give a customer a higher risk profile in the first place, attracting a higher overall cost, Mr Hargreaves said: 'In terms of how we assess risk, we use all of the information that a customer provides and 90% of our customers come from comparison sites. So what we're trying to do is we're trying to estimate the claims cost for that customer and price them for that claims cost as competitively as possible. 'If we're not competitive, we won't be top on the price comparison and we won't win the customer. So that's how the process works.' Mr Hargreaves later said: 'How the customer answers the questions will feed through to the price, so we use that information to determine the price. 'But it's within our interests to try and price for the claims risk as competitively as we can because it's a hugely transparent market. So that's really what we're doing. 'And then when we're looking at the profitability, and we analyse the data in all sorts of different ways, annual versus monthly what we see is the overall profitability taking everything into account is level. The customers on our portfolio who pay monthly, we're not making more profit out of them than the annual profits, when we take everything into account.' Mr Storah said: 'We look at over 100 risk factors when determining the premium and monthly versus annual pay is one of those factors. But it's one of 100 and so it has a place but it's relative to a whole load of other factors. The weighting changes depending on the other factors. It's almost like an equaliser on an old stereo system.' Mr Storah added: 'It's a balanced view of all of those risk factors, not an over-indexing on one or another.' Mr Walker said: 'There are a plethora of risk factors that are taken into consideration. This is one of them. So, does it have a role to play? Yes it does but it's in the context of multiple risk factors.'
The Independent
08-07-2025
- Automotive
- The Independent
Pay-monthly insurance options offer fair value, company bosses tell MPs
Bosses from major insurers have told MPs that customers opting to pay in monthly instalments rather than a lump sum upfront are being charged fairly for their cover. Appearing before the Treasury Committee, the bosses highlighted the admin costs and credit risks to firms when customers pay monthly for their cover. Concerns have been raised by consumer group Which? and others that some people are paying significantly more to split their insurance costs monthly. Jason Storah, CEO, UK general insurance at Aviva, told the hearing: 'We think that we charge a fair amount and just to bring it to life, on a £500 motor policy, a customer that is paying monthly will pay about £3 a month in the financing.' Mr Storah told MPs the insurer is not making any real money on the financing of pay-monthly products. Asked if he was confident his motor finance charges are reasonable, Alistair Hargreaves, CEO, UK insurance at Admiral Group, said: 'Yes, so our motor finance charges similarly are at the lower end of the range… they compare favourably to other sources of finance. 'In terms of when a consumer buys insurance, most of our customers and most customers for example in motor and home go on price comparison. And for most of the price comparison sites if they select to pay monthly they're looking at a monthly payment, they include the instalment charge as well as the underlying premium. 'And they, consumers, typically choose one of the cheapest three providers. 'So in addition to looking at the cost, we're also keen to be competitive. We've been very successful by being very competitive for consumers and getting to those top three slots in order that we can serve more customers.' Mr Hargreaves said: 'We look at fair value and when we look at annual customers and monthly payers the profitability on both groups of customers is very similar. 'So we look at the overall package to make sure that what customers are paying is fair.' Jon Walker, CEO, Axa Commercial, said: 'I have a similar position to Mr Hargreaves and Mr Storah on behalf of Axa. 'We believe offering an instalment option is a service that is good for customers.' He said: 'Relatively speaking, earnings from instalments represent a pretty small percentage of our overall earnings. 'There are additional costs that are incurred around the administration of providing instalment options, the reporting of it. There's also an element of risk the insurer takes. 'So if there is a period when a customer hasn't made their monthly payment they are still insured.' Asked how many weeks they would keep their insurance for, Mr Walker said: 'It would depend. Typically, a small number of weeks if there was a late payment. 'And obviously there's also a cost to insurers as well in terms of if a client pays upfront then that is money that can be invested and generate investment, income that doesn't exist on an instalment option. So there are real costs to insurers in the industry in providing instalments. But we do think it's a valuable product.' He later added: 'Proportionately, we don't make more money from customers that pay by instalments versus pay upfront.' Asked if not having a lump sum available to pay annually would give a customer a higher risk profile in the first place, attracting a higher overall cost, Mr Hargreaves said: 'In terms of how we assess risk, we use all of the information that a customer provides and 90% of our customers come from comparison sites. So what we're trying to do is we're trying to estimate the claims cost for that customer and price them for that claims cost as competitively as possible. 'If we're not competitive, we won't be top on the price comparison and we won't win the customer. So that's how the process works.' Mr Hargreaves later said: 'How the customer answers the questions will feed through to the price, so we use that information to determine the price. 'But it's within our interests to try and price for the claims risk as competitively as we can because it's a hugely transparent market. So that's really what we're doing. 'And then when we're looking at the profitability, and we analyse the data in all sorts of different ways, annual versus monthly what we see is the overall profitability taking everything into account is level. The customers on our portfolio who pay monthly, we're not making more profit out of them than the annual profits, when we take everything into account.' Mr Storah said: 'We look at over 100 risk factors when determining the premium and monthly versus annual pay is one of those factors. But it's one of 100 and so it has a place but it's relative to a whole load of other factors. The weighting changes depending on the other factors. It's almost like an equaliser on an old stereo system.' Mr Storah added: 'It's a balanced view of all of those risk factors, not an over-indexing on one or another.' Mr Walker said: 'There are a plethora of risk factors that are taken into consideration. This is one of them. So, does it have a role to play? Yes it does but it's in the context of multiple risk factors.'
Yahoo
11-05-2025
- Business
- Yahoo
Admiral Group plc (LON:ADM) Passed Our Checks, And It's About To Pay A UK£1.21 Dividend
Admiral Group plc (LON:ADM) stock is about to trade ex-dividend in three days. The ex-dividend date is commonly two business days before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Admiral Group's shares on or after the 15th of May, you won't be eligible to receive the dividend, when it is paid on the 13th of June. The company's upcoming dividend is UK£1.21 a share, following on from the last 12 months, when the company distributed a total of UK£1.92 per share to shareholders. Based on the last year's worth of payments, Admiral Group has a trailing yield of 5.7% on the current stock price of UK£33.50. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. We need to see whether the dividend is covered by earnings and if it's growing. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Admiral Group paid out 66% of its earnings to investors last year, a normal payout level for most businesses. When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn. See our latest analysis for Admiral Group Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at Admiral Group, with earnings per share up 8.7% on average over the last five years. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Admiral Group has delivered an average of 6.7% per year annual increase in its dividend, based on the past 10 years of dividend payments. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders. Should investors buy Admiral Group for the upcoming dividend? Earnings per share have been growing at a reasonable rate, and the company is paying out a bit over half its earnings as dividends. It doesn't appear an outstanding opportunity, but could be worth a closer look. However if you're still interested in Admiral Group as a potential investment, you should definitely consider some of the risks involved with Admiral Group. For example, Admiral Group has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
06-05-2025
- Business
- Yahoo
Admiral Group (LON:ADM) Is Increasing Its Dividend To £1.21
The board of Admiral Group plc (LON:ADM) has announced that it will be paying its dividend of £1.21 on the 13th of June, an increased payment from last year's comparable dividend. The payment will take the dividend yield to 5.9%, which is in line with the average for the industry. We've discovered 2 warning signs about Admiral Group. View them for free. Admiral Group's Payment Could Potentially Have Solid Earnings Coverage We like a dividend to be consistent over the long term, so checking whether it is sustainable is important. The last payment was quite easily covered by earnings, but it made up 189% of cash flows. The company might be more focused on returning cash to shareholders, but paying out this much of its cash flow could expose the dividend to being cut in the future. EPS is set to grow by 21.4% over the next year. If the dividend continues along recent trends, we estimate the payout ratio could reach 77%, which is on the higher side, but certainly still feasible. LSE:ADM Historic Dividend May 6th 2025 Check out our latest analysis for Admiral Group Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was £1.00, compared to the most recent full-year payment of £1.92. This implies that the company grew its distributions at a yearly rate of about 6.7% over that duration. A reasonable rate of dividend growth is good to see, but we're wary that the dividend history is not as solid as we'd like, having been cut at least once. We Could See Admiral Group's Dividend Growing Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Admiral Group has seen EPS rising for the last five years, at 8.7% per annum. The lack of cash flows does make us a bit cautious though, especially when it comes to the future of the dividend. In Summary Overall, this is probably not a great income stock, even though the dividend is being raised at the moment. With cash flows lacking, it is difficult to see how the company can sustain a dividend payment. Overall, we don't think this company has the makings of a good income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Case in point: We've spotted 2 warning signs for Admiral Group (of which 1 doesn't sit too well with us!) you should know about. Is Admiral Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
