British motor insurer Admiral cuts full-year dividend after profit miss
(Reuters) -British motor insurer Admiral lowered its full-year dividend on Wednesday after missing consensus for annual profit, hurt by increased claim costs amid higher prices of car repairs.
Motor insurers have been battling increasing regulatory scrutiny on renewal rates and car damage valuations, along with rising costs of claims due to disruptions in supply from Russia and Ukraine - both major markets and car parts suppliers.
Admiral cut its full-year dividend by 40% to 112 pence per share. Analysts on average had expected the company to cut its total dividends to 168.2 pence per share.
The company reported a 39% fall in profit before tax to 469 million pounds ($554.26 million) for the year ended Dec. 31, compared with a company-compiled analyst consensus of 491.5 million pounds.
($1 = 0.8462 pounds)
(Reporting by Sinchita Mitra in Bengaluru; Editing by Subhranshu Sahu)