FTSE100 insurer Admiral is considering a move into the legal sector following the ban on personal injury referral fees implemented by the Ministry of Justice (MoJ) last year.
The Cardiff-based company’s shares dropped by more than 4 per cent following the MoJ’s outright ban, which is expected to come into force later this year.
Currently around 5.6 per cent of Admiral’s profit derives from referral fees.
It is understood that the insurer is looking at establishing an umbrella personal injury firm or becoming a majority investor in one.
The SRA will begin accepting applications for alternative business structures (ABSs) this month.
A spokesperson for Admiral declined to comment on the plans.