Investors should sell Admiral stock following MP's calls for transparency on referral fees - analyst
The MP's calls for greater transparency on referral fees is 'not good' for Admiral, Shore Capital analyst Eamonn Flanagan says.
Flanagan reitarated a sell recommendation for Admiral's stock following the Transport Select Committee's report into motor insurance.
He has concerns about Admiral's lack of transparency over how much money it earns from ancillary income.
The report recommends following the advice of the Legal Services Board which would mean insurers fully disclosing their sources of referral fees and how their links with solicitors and credit hire firms.
Flanagan said: "Not good for Admiral, if either greater transparency is introduced - the group has consistently refused to disclose what element of its ancillary revenues emanate from claims referral fees – or legislation on this subject comes in."
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