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Insurance company Admiral upgraded its outlook on profit following a positive development in the cost of UK motor bodily injury claims.
For the first half of 2021, pre-tax profit was expected in the range of £450 to £500 million.
'The stronger result is due to unusually positive development in the cost of UK motor bodily injury claims from a number of prior underwriting years which has led to higher reserve releases and profit commission revenue,' the company said.
Lower than expected motor claims frequency in 2021 to date due to extended lockdown restrictions also resulted in a favourable current period loss ratio, it added.
On the basis of these preliminary results, the company proposed an interim dividend in the range of 110 to 125 pence per share.
Looking ahead, the company said it didn't expected the level of reserve releases and profit commission for the first half of 2021 to be repeated in the second half.
Admiral will publish its 2021 half year results on Wednesday 11 August 2021.