Broker snap: Regulatory pressures continue for Admiral, says Investec

3rd Oct 2011 12:55

Investec has maintained its sell rating and 843p target price on FTSE 100 motor insurer Admiral, highlighting continuing pressures from the Association of British Insurers (ABI).Analyst Kevin Ryan said, "Following ABI's victory in getting the Ministry of Justice to announce it will ban referral fees, it is now believed to be pushing to reduce lawyers' fees in all personal injury cases."He thinks that this could have a knock-on effect for third party claims managers and the fees that emerge from these businesses."We see a steady squeeze on Admiral's superior profits continuing and reiterate oursell recommendation," Ryan added.Shares were trading 0.16% lower at 1,261p at 12:36.BC