Admiral suspends special dividend

Written by Adam Cadle

27/04/2020

Admiral is temporarily withholding a special dividend to shareholders.

Admiral said its board is recommending an unchanged normal dividend of 56.3p per ordinary share (payable on 1 June 2020 to all ordinary shareholders on the company’s register of members at the close of business on 11 May 2020), but is suspending the recommendation to pay a special dividend of 20.7p per ordinary share. The decision is in light of the regulatory guidance to insurers urging restrain on the payments of dividends due to the uncertainty of the current economic environment.

The board will review the position in relation to the special dividend alongside the company’s half year results. It currently intends to pay this part of the final dividend later in the year unless there is a significant deterioration in the company’s financial position, trading or outlook.

In today’s announcement, Admiral said it “has significant liquidity and a strong solvency position, well above its target level and regulatory thresholds”.

“Robust stress tests against the company's financial position support the payment of the previously announced final dividend in full under normal circumstances,” it said. “However, the board is mindful of the call for heightened prudence from its regulators and has concluded that suspending the payment of the special dividend is appropriate at this time.”

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