Car insurer Admiral suspends special dividend on regulatory pressure
Car insurer Admiral said today it would suspend its special dividend after regulatory pressure from the Bank of England.
Admiral said it would go ahead with its standard dividend payment of 56.3p per ordinary share on 1 June, but said it would not pay its previously recommended special dividend of 20.7p per ordinary share.
The insurer said it has “significant liquidity and a strong solvency position” and would be able to pay the special dividend “under normal circumstances”.
However, it said it was “mindful of the call for heightened prudence from its regulators and has concluded that suspending the payment of the special dividend is appropriate at this time”.
Chief executive David Stevens said he and his wife would donate the proceeds from their ordinary dividend payments to charity.
Stevens said: “We find ourselves in extraordinary circumstances, and it has been a very difficult decision to suspend the special dividend as we are aware of the importance and impact to our shareholders and staff.
“However, the board and I believe that this is the prudent and right thing to do at this time. We thank our customers, staff and shareholders for their continued support, and we remain committed to making decisions that are in their best interests in the long term.”
Admiral shares rose 0.9 per cent to 2,329p this morning.