Admiral flags up compensation fear

Car insurer Admiral yesterday warned that higher-than-normal levels of personal injury claims were likely to dent its profits growth.

Shares in the group, which owns Elephant and price comparison site Confused, slumped by a quarter after it said current trends suggested 2011 profits were now set to be towards the bottom end of City hopes. It is the latest blow for the firm, which recently said a ban on referral fees will hit its full-year earnings, although it welcomed the move to tackle the UK’s compensation culture.