Added to YB: 2026-03-18
Pitch date: 2026-03-16
ADM.L [bullish]
Admiral Group plc
+1.29%
current return
Author Info
The Curious Compounder will feature company deep dives, thoughts on markets, the ongoing search for attractive risk / reward and will keep asking questions. Sign up for the newsletter.
Company Info
Admiral Group plc, a financial services company, provides insurance and personal lending products in the United Kingdom, France, Italy, Spain, and the United States.
Market Cap
GBP 9.9B
Pitch Price
GBP 32.60
Price Target
N/A
Dividend
6.25%
EV/EBITDA
10.84
P/E
13.51
EV/Sales
2.30
Sector
Insurance
Category
dividend
The GEICO of the UK, but can it keep on winning in a data-centric world ? - Admiral Group: Enduring Low-Cost Advantage
ADM.L (deep dive): UK motor mkt leader, 1 in 5 drivers insured, 20pt combined ratio edge vs industry (78% avg vs ~101% mkt). Innovative co-insurance model limits capital needs while retaining upside. Culture = competitive moat: 25yrs Sunday Times Best Cos, low turnover cuts costs. Data-driven pricing via Confused.com, multi-cover bundling. Diversifying: Household (7% share), Admiral Money (£1.5bn loan book, 3-4% NIM post-losses), Euro ops (1.9m customers, struggling). Industry CR forecast 112% in 2026; pricing inflection = catalyst. 6.5% yield, 13.7x 2026 PE. Central case: 6-10% EPS growth + 6.4% yield = 12-16% returns. Risks: pricing discipline industry-wide, regulation, autonomous vehicles. Best entry at ~8% yield (fear).
Read full article (24 min)