Admiral Group plc [AMIGY] Stock Forecast

Life company Legal & General Group PLC (LSE:LGEN) and general insurer Admiral PLC report, with their shares having gone in opposite directions in the lead-up to results, and elsewhere in the insurance sector there's also Hiscox. Darktrace PLC (LSE:DARK) shares have been on a rollercoaster ride since they floated in 2021, with investors likely to be keen for an update after a short-seller recently attacked the quality of its accounting measures.

Admiral Group plc shares are down 7% this morning after shares in Direct Line, a competitor, crashed 26% following a profit warning. Direct Line had a number of unexpected problems during Q4. Most of these do not apply to Admiral at all, or to a much lesser extent.

Over the past year, Admiral Group plc investors have been shocked several times by disappointing competitor updates. Yet, Direct Line and Sabre issues have just created great entry points for knowledgeable Admiral investors.

Aviva PLC (LSE:AV.) and Admiral Group were amongst those insurers knocked by the shock warning by Direct Line Group PLC today.

2022 was a year where share prices mostly went down and my portfolio saw a maximum decline during the year of 18%. The portfolio is significantly weighted toward its highest-quality holdings with the lowest valuations.

Admiral's strong capital release and dividend record has supported long-term shareholder returns. The market is overly pessimistic due to idiosyncratic issues at competitors, creating a variant perception opportunity.

Admiral shares have fallen below 2,000p for the first time since H1 results, losing 8% since last Thursday - we believe unfairly. Key developments in the past few weeks were a poorly-received new U.K. "mini-budget" and H1 results from niche competitor Saga.

Admiral shares rose 12.6% in London on Wednesday after the company released H1 2022 results that were much stronger than expected. Uniquely among U.K. motor insurers, Admiral profits were larger than in 2019, despite elevated claim cost inflation so far in 2022.

Admiral Group plc (OTCPK:AMIGF) Half Year 2022 Earnings Conference Call August 10, 2022 5:30 AM ET Company Participants Milena Mondini – Chief Executive Officer Geraint Jones – Group Chief Financial Officer Cristina Nestares – Chief Executive Officer-UK Adam Gavin – Deputy Head-Motor Claims Costantino Moretti – Head-International Insurance Scott Cargill – Chief Executive Officer-Admiral Money Conference Call Participants James Pearse – Jefferies Thomas Bateman – Berenberg Freya Kong – Bank of America Kamran Hossain – JPMorgan Alexander Evans – Credit Suisse Ivan Bokhmat – Barclays Greig Paterson – KBW James Shuck – Citi Faizan Lakhani – HSBC Nick Johnson – Numis Milena Mondini Hello, everyone, and welcome to Admiral's Half Year 2022 Results Presentation. We're pleased to report another period of strong growth across the business, excellent customer outcomes, and a solid set of results.

Admiral shares fell 26% in three trading days in July after two competitors warned on profits; it reports H1 results next week. Competitors' H1 results showed large claim cost inflation, profit margin declines and relatively flat volumes. Admiral is likely similar.

Admiral Group plc is a GB stock and trading under the symbol AMIGY

Admiral Group plc stock price is $24.52 today.

Yes, Admiral Group plc is a publicly traded company.