Insurance group Admiral shares jumped this morning as it reported soaring profits for the first half of the year.

The London-listed firm saw year-on-year profit rise 32% to £309.8 million in the six months to June, while revenue was up 43% at £3.21 billion.

The increases were mainly driven by a 12% jump in customer numbers, to more than 10.5 million.

Through 2022 and 2023, Admiral hiked insurance premiums in response to “elevated claims inflation”.

Then, at the start of 2024, it decreased its premiums, “leading to an improved competitive position and significant growth in UK motor customer numbers”.

The group hailed a “record 5.5 million vehicles on cover in the UK and nearly half a million more customers across other product lines in the UK”.

Admiral shares jumped more than 10% on the news in early trading.

Milena Mondini de Focatiis, Admiral chief executive, said: “Given our earlier pricing response to inflation in previous years, we have been able to be more competitive in (the first half) and this helped grow our customer base 12% to 10.5 million.

“We continue to evolve our core technical competences leveraging new data and technology.”

She added that the company would now focus on pushing a new corporate working model called “scaled agile” and “enhancing our capabilities in AI application”.

Admiral boosted its interim dividend from 51p to 71p per share. The company follows Aviva, which also said it would boost its dividend earlier this week.

Chris Beauchamp, chief market analyst at online trading platform IG, said: “Another day, another dividend hike from a FTSE insurer.”

He added: “The good times are back for insurers it seems, and for their investors too.

“While another UK rate cut isn’t on the cards yet, a gradual decline in income from interest rates will keep the sector on investors’ radars.”