The company said the number of vehicles it insures in the UK rose 7pc to 3.02m in the six months to June 30, compared to growth of 33pc during the same period last year.
Admiral also reported a drop in the extra revenue it makes per car from £86 to £82. This income includes fees for personal injury insurance, breakdown cover and car hire cover.
Henry Engelhardt, chief executive of Admiral, said it was “appropriate” for the company to moderate its growth in the UK.
He added: “After favourable conditions during 2010 and the first half of 2011 in the group’s core UK car insurance market, there has been a marked change in 2012, with premium rates falling and competitors seeking to add market share.”
Pre-tax profits in the division still rose from £168m last year to £183m, helping group profits up 7pc to a record £171m. However, shares in Admiral fell 34, or 2.8pc, to £11.62.
Eamonn Flanagan, analyst at Shore Capital, said: “Admiral reported interim results which were well below our expectations and included a number of features which reinforce our concerns over the group’s business model within the UK motor insurance industry.”
However, Stuart Duncan at Peel Hunt said the drop in Admiral’s reliance on ancillary income is “a positive outcome”.
Admiral is no longer earning revenues from the sale of legal protection policies and next year personal injury referral fees will be banned. The Office of Fair Trading is investigating the car insurance market, including extra fees.
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