Cardiff-based motor insurer cautious about being dragged into a price war

Admiral is expected to show improvements in its profit margins on Thursday when it reveals its results for the half-year.

The motor insurer said in its first quarter results that it would not be chasing rivals who are reducing premiums by up to 10 per cent.

That cautious approach played out in the results which showed a 6 per cent fall in revenue. Car insurnace revenue solely dropped 9 per cent to £470m.

Speaking to The Scotsman, Redburn analyst David Bracewell said: “Admiral has been targeting margin over volume for 12-18 months and part of this strategy is to increase retention rates and write less new business.”

Rivals have been cutting premiums as they anticipate reduced claims costs following UK motor legal reforms.