Introduction
Since our Sell recommendation on Admiral Group plc (OTCPK:AMIGF) on Feb 21, the share price has fallen by 7.2% in London but, including dividends paid (66.0p), shares have returned a small 0.1%, slightly worse than the FTSE All-Share Index (up 0.8% in price). U.K. insurance names that we considered more attractive, Direct Line (OTC:DIISF) and Hastings (OTC:HNGGF), have done far worse in this period, as shown below:
Following Admiral's 19H1 results last week, we have reconsidered our Sell thesis, and upgraded our rating to Neutral. We outline