Chief executive dives into Admiral stock just hours after profit slump on bodily injury fears
Admiral chief executive Henry Engelhardt has defied City critics by snapping up one million shares of the under-fire insurer’s stock.
Engelhardt and family snapped up the one million shares at £8.74 just hours after yesterday’s profit warning.
Admiral’s shares slumped 30% yesterday as the City feared the Cardiff-based insurer was suffering from the same bodily injury problems which have bedevilled competitors.
Investors fled Admrial after profits fell well-short of analysts’ expectations and management revealed it was handling an increased caseload of large claims worth more than £100,000.
However, Engelhardt’s decision to splash out £8.7m of his own fortune on Admiral stock will be seen by many as sign that he believes there has been an over-correction.
Engelhardt and family have a £344m fortune, even after nursing £116m worth of lost value in stock, following yesterday’s profits warning.
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