Weekly equity roundup: insurance strength leads UK markets
Strong earnings momentum in the insurance sector continues to power select FTSE 100 stocks higher, with Admiral and Aviva leading the pack. Momentum from banks such as NatWest also offers compelling opportunities for stock pickers.
Admiral: insurance profits and regulatory clarity fuel rally
Admiral soared this week, rising as much as 6.65% on Thursday, hitting a new 52-week high at 3,634 pence amid elevated trading volume. The British Financial Services company’s share price, up over 34% year-to-date, is gunning for its August 2021 record high at 3,706p.
The surge followed the insurer's announcement of a 67% increase in half‑year pretax profit and a 62% rise in interim dividend, underscoring pricing discipline and strong fundamentals
Although the company also set aside £50m for claims redress due to historic payout issues, management’s transparency and financial strength seem to have boosted investor sentiment.
Admiral Monthly candlestick chart
Aviva: record profits, dividends, and sustainability commitments
Aviva also featured prominently. The insurer’s stock jumped 3.5% following a 22% rise in H1 operating profit, the announcement of a boosted interim dividend, and progress on its Direct Line acquisition.
The British multinational insurance company’s shares - up 42% year-to-date - reached their highest level since the 2008 financial crisis, buoyed by strong performance across its wealth, health, and general insurance divisions.
CEO Amanda Blanc also reaffirmed Aviva’s ambitious net‑zero climate transition plan, calling out continued relevance of sustainability in insurance.
NatWest hits 52-week high as investor confidence builds on earnings strength
NatWest gained more than 2% during the week – up nearly 38% year-to-date – and hit a fresh 52-week high of 558 pence.
NatWest Monthly candlestick chart
The bank’s advance built on steady momentum in recent months, with investors encouraged by resilient first-half earnings and improved guidance.
Analysts said the rally reflects growing confidence in the lender’s ability to maintain strong net interest margins even as the Bank of England (BoE) is expected to begin cutting rates later this year.
The bank has also benefited from reduced political uncertainty and signs of stabilising UK economic growth, both of which could bolster lending volumes and credit quality.
The government’s ongoing sell-down of its stake, now reduced to below 20%, has been met with strong institutional demand, reinforcing confidence in the bank’s investment case.
The FTSE 100 hit a record high above the 9,200 mark on Friday morning, helped by gains in miners on hopes of easing trade tensions.
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