The group’s shares closed at 1,522p

Shares in Admiral have taken a hit after the motor insurer announced a £200m bond issue and a 9% drop in turnover over first six months of 2014.

The group’s shares closed at 1,522p, down 52p.

Yesterday, chief executive Henry Engelhardt said the bond issue had been made to diversify its capital base.

“It is an opportune time to strengthen and diversify our capital resources as we make a prudent transition into Solvency II in 2016, with the attendant regulatory capital requirement and buffers. The additional capital also sets us up well for the growth we expect from all our businesses in the coming years, while being consistent with our existing dividend policy,” he said.

Click here for yesterday’s full announcement and the insurer’s six-month results.

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