Admiral hikes dividend after growing profits by six per cent

29th Aug 2013 08:04

Admiral said it would lift its interim dividend payment after driving up first half profits against a backdrop of stiff competition.The motor insurance provider reported profits rose six per cent to £181.4m in the first half of 2013 after focusing on margin rather than growing market share in its UK car insurance and helped by higher profits from its price comparison business Confused.com.Turnover fell to £924.5m from £1bn, mainly driven by reduction in average premiums in the UK car insurance operation. Chief Executive Henry Engelhardt said: "We didn't grow the UK insurance business which was great news because of the competitive environment. We were able to increase profits largely due to excellent claims experience." He added: "Any time you can increase profits by six per cent when competitors are cutting prices you've got to be happy."The international car insurance business saw its losses widen to £10.8m from £8.9m after an increase in marketing spend. The interim dividend payment has been lifted by eight per cent to 48.9p. Shares in Admiral were down 1.2% at 08:28 on Thursday.TB