FoggyIsle.XYZ | Market's view on Admiral

One stock watcher, a customer of Admiral, expresses concerns over the company’s business model. They highlight the slow system processing of new car registrations, taking longer than a week compared to other insurers, and the lack of autonomy given to call centre workers in India, which could potentially push customers to switch to other insurers.
A positive outlook on Sabre’s recent results is noted by another watcher, indicating a promising future for the company.
An analyst from Berenberg increases the target price for Admiral from £29.61 to £29.73, citing the insurer’s leading position in price rises and predicting strong growth in profits for 2024 and 2025. The analyst acknowledges the risk of falling UK motor insurance prices but believes that Admiral’s competitive pricing sets it ahead of the market.
One participant suggests a rumour or possible bid rejection as the reason for an 80p spike in Direct Line’s shares.
Concerns are discussed around the APR rates for insurance installment payments, particularly the impact on those who can least afford it. Some watchers suggest that policies paid by instalments generally perform worse and could potentially encourage fraudulent behaviour.
A concern is raised over an interview with the FCA in the Insurance Post regarding premium finance, which appears to have affected all insurance stocks.
Berenberg’s downgrade of Admiral from ‘buy’ to ‘hold’ is discussed, with some watchers criticising the analyst’s contradictory move of increasing the company’s share price target from £25.43 to £29.61.
Admiral’s interim results receive a mixed response. While profits are down 5% and dividends down 15%, other metrics are reportedly up. An interim dividend of 51.0 pence per share, including a special dividend of 13.0 pence, is announced for payment on 6 October 2023.