March 8, 2017 / 7:23 AM / 4 months ago

Admiral FY profit hit by cut in injury discount rate

1 Min Read

LONDON, March 8 (Reuters) - Car insurer Admiral on Wednesday posted a 25 percent fall in full-year pretax profit after the British government lowered the discount rate used to calculate personal injury payouts.

Pretax profit in the period was 284.3 million pounds ($346.99 million), it said in a statement, down from 376.8 million pounds in 2015.

Stripping out the impact of the discount rate cut to minus 0.75 percent from 2.5 percent, which will see lump-sum payouts rise, the firm said profits were up 3 percent.

However, the firm said revenues over the 12 months to end-December rose 22 percent to 2.6 billion pounds, helped by strong sales to international customers.

The company said it would pay a final dividend of 51.5 pence, made up of a normal dividend of 15 pence per share and a special dividend of 36.5 pence. ($1 = 0.8193 pounds) (Reporting by Simon Jessop, editing by Maiya Keidan)

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