Insurance company Admiral is expecting its profits to increase after a year of minimal driving for many households across the country. This has meant there have been far fewer car insurance claims over the pandemic as fewer people have been getting into accidents than they would have in 2019.

The British insurance giant said pre-tax profits will probably equal £450- £500 million for the first six months of the financial year. This has nearly doubled on the £286 million they reported for the same time in 2020. Deutsche Bank had been expecting profit numbers of £270 million, so this is far higher than forecasts.

The stronger result is due to unusually positive development in the cost of UK motor bodily injury claims," Admiral said in a trading update on Monday, adding that motor claims were "lower than expected due to extended lockdown restrictions"

Analysts at RBC said this positive forecast will not last into the second half of the year. "We expect the loss ratio in motor to gradually normalise as the traffic levels return back to normal assuming no further lockdowns," RBC said.

Investors will no doubt still cheer, as Admiral is planning to give shareholders £400 million, after the sale of its price comparison site confused.com. Deutsche Bank had not been expecting so much of a return, having predicted only £360 million.