Mail stable says company unusual in underwriting for profit
The Mail and Mail on Sunday’s website This is Money are tipping Admiral shares claiming the company is unusual in underwriting for profit.
“More often than not, companies lose money from insuring customers against potential accidents. They charge too little and after paying for claims, salaries and back-office systems, they will frequently declare insurance losses,” the Midas tipster says.
“They try to make up for this by investing the money customers pay for insurance in the financial markets. Sometimes the strategy works. Sometimes it fails miserably. But Admiral Group is different. It makes money from insurance and it barely invests in financial markets.”
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