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According to the Guardian, the FTSE 100 was up by 11.35 points to trade at 5,167.3 points at 09:20 BST and shares in the insurance provider have risen to 1,538p - a 65p increase - on the back of strong profit reports.
Admiral revealed half-year profits increased by 21 per cent to £126.9 million, meaning interim dividends would be raised by 18 per cent.
Speaking to the newspaper, Charles Coyne, research director at FinnCap, said despite attractive dividends, the firm remains "fundamentally overvalued".
"The market should now consider whether a multiple of 16 times net assets makes sense for a company with an admittedly high return on equity of nearly 80 per cent," he added.
This news follows comments made by Carl Astorri, head of economics and strategy at Coutts, who told Citywire investors should avoid FTSE 100 firms with large pension deficits in an deflationary climate.
Posted by Greg Secker
