FTSE 100 movers: Aviva, Admiral jump on results
London’s FTSE 100 was up 0.2% at 7,503.57 in afternoon trade on Wednesday.
Aviva surged to the top of the index as the insurer reported a 14% increase in first-half operating profit and said it expects to announce a share buyback with its full-year results.
Admiral rallied even as the insurer posted a drop in first-half profit, pointing to a "more turbulent cycle than usual" and high inflation. In the six months to 30 June, pre-tax profit fell 48% to £251.3m. Versus the same period in pre-pandemic 2019, however, pre-tax profit was ahead 19%.
AJ Bell financial Danni Hewson said: "A big drop in profits is unusual for Admiral but comes as no surprise if you’ve already seen recent warnings from fellow insurers Sabre and Direct Line.
"Claims inflation has caused significant headaches in the motor insurance industry, fueled by used car prices shooting up, higher repair costs, fixes taking longer to complete and wages going up."
RS Group pushed higher after it announced the acquisition of Mexican industrial and automation product and service solutions distributor Risoul for $275m.
FTSE 100 - Risers
Aviva (AV.) 462.80p 11.71%
Admiral Group (ADM) 2,197.00p 11.66%
Flutter Entertainment (CDI) (FLTR) 9,100.00p 5.64%
Abrdn (ABDN) 170.00p 5.49%
Ocado Group (OCDO) 914.40p 5.42%
Intermediate Capital Group (ICP) 1,527.50p 4.55%
Mondi (MNDI) 1,537.00p 4.06%
RS Group (RS1) 1,055.00p 3.74%
Smurfit Kappa Group (CDI) (SKG) 3,145.00p 3.52%
JD Sports Fashion (JD.) 131.10p 3.47%
FTSE 100 - Fallers
Centrica (CNA) 78.82p -6.30%
GSK (GSK) 1,584.60p -3.78%
SSE (SSE) 1,773.00p -2.04%
BT Group (BT.A) 158.00p -1.83%
HSBC Holdings (HSBA) 545.10p -1.52%
Airtel Africa (AAF) 152.20p -1.30%
Standard Chartered (STAN) 604.40p -1.27%
Reckitt Benckiser Group (RKT) 6,578.00p -1.26%
Unilever (ULVR) 3,946.00p -1.19%
Avast (AVST) 675.60p -1.08%