Admiral Finals

[tjh290633]

http://uk.advfn.com/stock-market/london ... r/74038976

The Directors have proposed a final dividend of 51.5 pence, representing
a normal dividend of 15.0 pence per share and a special dividend of 36.5
pence per share. The dividend will be paid on 2 June 2017. The
ex-dividend date is 11 May 2017 and the record date is 12 May 2017.

Total for the year is same again, but the final has been reduced because of Ogden.

TJH

[Dod1010]

The RNS on Admiral's results are much more interesting than the advfn item highlighted by tjh for at least two reasons. The first is that they appear to no longer refer to a Special Dividend, They keep talking about the Final Dividend being 51.5p, thus yielding 6.3% at the year end share price, about the same as today. That would suggest that they are maybe finally recognising the Special as not so Special after all, because even after increasing their reserves for the much reduced discount rate (post Ogden as they call it) they are still able to make a large release to cover the 'special' bit of the dividend. They are of course consistently over reserving if they are able to generate such big releases which helps them if they are still growing their turnover and it postpones some tax charges.

The other item which interested me is that they talk about culture all the time, and are of course right. They are a distinctive and very pragmatic insurer. I have no idea what pyad meant when he said on the L & G thread that mention of culture makes him reach for his pun or something like that but he is the loser if he does not recognise culture good and bad. He would have avoided buying RBS for a start.

I do not hold Admiral but am beginning to think I should have because that yield looks pretty secure and however unconventional it is, their particular insurance model obviously works. Just as long as they keep Munichre on side.

Dod

[tjh290633]

My link was to the RNS. For some reason Investegate refused to respond at the time.

If you look at the figures, the effect of Ogden is obvious, both on pre-tax profit and earnings per share.

TJH

[idpickering]

I do not hold Admiral but am beginning to think I should have because that yield looks pretty secure and however unconventional it is, their particular insurance model obviously works. Just as long as they keep Munichre on side.

Dod

Hi Dod,

Your comment above really got me thinking about Admiral as a potential purchase, rather than just topping up my Carillion holding, so thanks for your words of wisdom. I've toyed with bringing them on board for a couple of years anyway.

This change of mind (again) on my part was discussed here;

Good evening all,

Further to my post, I think it only fair to be up front about this. I have changed my mind regarding topping up CLLN, and shall be bringing Admiral Group on board tomorrow instead. I like the story of the company, and the fact that they further diversify my HYP.

viewtopic.php?f=15&t=3969

Regards,

Ian.

[Dod1010]

Hi Ian

Do not take my word for it! They do though look a decent investment to me. As I have said they are very pragmatic but need to keep their shareholder and reinsurer Munichre on side.

Good luck.

Dod

[idpickering]

Hi Ian

Do not take my word for it! They do though look a decent investment to me. As I have said they are very pragmatic but need to keep their shareholder and reinsurer Munichre on side.

Good luck.

Dod

Hi again Dod,

Maybe I was being unfair. It wasn't totally your comment that swayed me, and the decision is mine alone. I had been looking at trying to spread my diversification further, hence my comments regarding Standard Life recently. However, they are to close to Legal & General as an outfit to offer that extra diversification, which led me to Admiral Group.

Regards,

Ian.

[Horsey]

Ian, if you're looking for further diversification perhaps Allianz SE would fit the bill rather than Admiral. Better yield, bigger cap, much lower PE. The German withholding tax will take a chunk out your divi (26.375%) though.

https://www.allianz.com/en/investor_rel ... /dividend/

Then again, maybe non-UK shares aren't your thing.

[idpickering]

Ian, if you're looking for further diversification perhaps Allianz SE would fit the bill rather than Admiral. Better yield, bigger cap, much lower PE. The German withholding tax will take a chunk out your divi (26.375%) though.

https://www.allianz.com/en/investor_rel ... /dividend/

Then again, maybe non-UK shares aren't your thing.

Thank you for your post Horsey, and your suggestion. You are right, non UK shares are not my thing. However, I do like the fact that some of my holdings have true Global reach/exposure. Couple that with the exposure to other currencies, Dollar and Euro, provided by some of them, is exposure to the non UK World enough for me.

Regards,

Ian.

[YeeWo]

Jardine Lloyd Thompson is my Insurance pick on the grounds of both Culture and Diversification by sector and geography. The dividend history is excellent, keep some dry-powder for when they are cheaper than today!

[Dod1010]

The problem is YeeWo, that JLT is not comparable to Admiral being as you know, an intermediary, and not an underwriter like Admiral and Admiral of course is pretty much in one class of business only, motor insurance. I take your point though.

Dod

[Arborbridge]

I think a similar problem relates to Allianz - does it provide much diversification for Ian compared with other insurance companies? I'd suggest not.
Admiral, however, is a really different animal to either life or general insurance companies. It's insurance, but not wedded to long term life expectancies, only car accident statistics. That gives real diversity compared with the others.

Arb.

[Dod1010]

Ian, if you're looking for further diversification perhaps Allianz SE would fit the bill rather than Admiral. Better yield, bigger cap, much lower PE. The German withholding tax will take a chunk out your divi (26.375%) though.

https://www.allianz.com/en/investor_rel ... /dividend/

Then again, maybe non-UK shares aren't your thing.

What is the dividend yield an Allianz? Better than 6%? That is what Admiral has been fairly consistently producing for many years now (including of course the Special) If it is, then German shares obviously need to be looked at carefully by HYPers, although the withholding tax will remove the shine.

Dod

[idpickering]

I think a similar problem relates to Allianz - does it provide much diversification for Ian compared with other insurance companies? I'd suggest not.
Admiral, however, is a really different animal to either life or general insurance companies. It's insurance, but not wedded to long term life expectancies, only car accident statistics. That gives real diversity compared with the others.

Arb.

That's my take on Admiral also Arb, thanks. I agree with Dod''s post prior to your's too. I did used to hold Aviva (AV.) some years ago, but no more, and thought of that as a different beast to Legal & General, which was my aim at that time. I'm happy to be an Admiral Group shareholder, and look forward to my next dollop of cash in them next month. Thereafter we'll see. I don't want to divert the thrust of this thread with my musings.

Ian.