LONDON: British motor insurer Admiral said it was likely to beat 2011 profit forecasts after rising customer numbers drove a 56 percent jump in first-quarter sales, sending its shares higher. Admiral, which insures one car in 10 on Britain's roads, was on track to “at least” meet analysts' consensus profit forecast for the full year, it said Friday. The Cardiff-based insurer, which also trades under the Bell, Diamond and Elephant brands, had been expected to deliver a 2011 pretax profit of 320 million pounds ($510 million), according to Thomson Reuters I/B/E/S, up from 266 million. Shares in Admiral, 14 percent-owned by chief executive Henry Engelhardt, were up 4.3 percent at 1,733 pence by 0900 GMT, making the company the second-biggest riser in the FTSE 100 share index, and valuing it at about 4.7 billion pounds. The stock has climbed 14 percent so far this year, outpacing a 7 percent rise in the European insurance sector. Admiral specializes in selling online and over the phone, and is one of few British car insurers to make a profit in a market bedevilled by intense competition and rising personal injury claims, fuelled by “no win, no fee” lawyers. Analysts say the industry remained loss-making overall last year despite a big rise in prices as motor insurers sought to recoup hefty claims expenses, reversing several years of price declines blamed on stiff competition. “They were profitable before rates started going up sharply. So, in a sense, they benefit twice over from the much firmer pricing environment,” said Investec analyst Kevin Ryan. “In the short term, they look very well placed.”
