Car insurer Admiral posts 1 pct profit rise, dragged down by large injury claims costs

LONDON, Aug 16 (Reuters) - British motor and home insurer Admiral on Wednesday posted a 1 percent rise in profit before tax in the year to June 30 as costs from an increase to the personal injury rate carried into 2017.

Admiral pre-tax profits rose to 195 million pounds ($251 million) this June from 193 million pounds last year after the government in February announced a reduction to the so-called 'Ogden' rate, which determines the scale of lump sum payouts, from 2.5 percent to minus 0.75 percent.

"Most of the adverse impact from the increase in the costs of large injury claims, resulting from the change in the Ogden discount rate, was captured in our 2016 second half result," said David Stevens, Group Chief Executive Officer. "However, some extra costs carry into 2017."

Turnover, however, grew 15 percent to 1.45 billion pounds, from 1.26 billion pounds last year, helped by an increase in customers to 5.46 million at June 30 from 4.82 million in 2016.

The car insurer also said it would pay an interim dividend of 56 pence.

($1 = 0.7778 pounds) (Reporting by Maiya Keidan, editing by Dasha Afanasieva)