Admiral Group Plc. £ADM - A Valuation On 2nd June 2021
This is a business that enjoys incredible economics. Will the rise of autonomous cars hurt them, or will it be smooth sailing for the Admiral?
The Story
The Admiral Group is a British financial services business offering motor, household and travel insurance and comparison and lending products. The company’s primary market is the UK, but they also have small insurance businesses in Italy, Spain, France and the US.
Recently, the company sold off its comparison business, Penguin Portals, and its 50% stake in Preminen Price Comparison, and will receive about £460m.
The company is an absolute titan of the British auto-insurance industry and controls 15.4% of the market. Having a sixth of the market is an outstanding share for what is essentially a commodity product. The four most prominent players in this market (Admiral, AXA, Direct Line and Aviva) combine to make up over half the policies.