Car insurer Admiral today 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 Cardiff-based firm, which recently said a ban on referral fees will hit its full-year earnings - although it welcomed the move to tackle the country’s compensation culture.
Admiral now insures 3.3 million vehicles and saw group turnover increase by 30% to £582m in the third quarter of its financial year.
Chief executive Henry Engelhardt said: "Notwithstanding the continued higher level of large claims in the quarter, I expect us to once again report record profits for the full year, probably some 10% higher than last year."