(Adds share price reaction, analyst comment)
LONDON, July 12 (Reuters) - Shares in British motor insurer
Admiral jumped 6% on Monday to a record high after the
company said it was on track for a higher than expected
first-half profit due to lower motor accident claims through
pandemic lockdowns.
Admiral said pre-tax profit for the first half was likely to
be between 450 million pounds and 500 million pounds ($625
million-$695 million) when it reports results for the period
next month.
The insurer said the boost came from fewer historic injury
claims leading to a release of reserves and lower accident
claims so far this year through lockdowns.
Shares in the company were last up 2% at 0715 GMT.
Analysts at KBW said the surprise trading update indicated
profits would be around double the company's normal run rate.
Admiral expects to return 400 million pounds to shareholders
in special dividends over the next two years, the company said,
after it completed the sale of its Penguin Portals unit in
April. It said it expects to pay an interim 2021 dividend of
between 110 to 125 pence per share.
Admiral said it did not expect the lift in profits to be
repeated in the second half of the year.
($1 = 0.7194 pounds)
(Reporting by Iain Withers
Editing by Rachel Armstrong, Kirsten Donovan)