Admiral's shares crash 28.6% on bodily injury fears

Investors fled Admiral today, causing a 28.6% drop in its share price, as they fear the bodily-injury claims plague which has battered other insurers, is now creeping up on the Cardiff-based insurer.

The primary cause of the drop in the share price was the failure to achieve analysts’ expectations which were much higher than the 10% (year-on-year) projected by Admiral.

The share price crashed from 1191p to 850p on trading today in the aftermath of the profits warning.

“Notwithstanding the continued higher level of large claims in the quarter, I expect us to once again report record profits for the full year, probably some 10% higher than last year,” chief executive Henry Engelhardt said.

“I am confident that with Admiral’s enlarged customer base and significant combined ratio advantage we are in a strong position for sustained long-term growth and good news in 2012 and beyond.”

Elsewhere, Aviva’s shares slumped 5.5% today as Italian government debt soared into bailout terriroty.