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Admiral may move business away from UK over Brexit

Admiral may move business away from UK over Brexit

Admiral may move business away from UK over Brexit Major British insurer Admiral has warned of moving its business away from the UK due to the potential consequences of leaving the European Union.
 
The company said it could move its European business to Ireland or another country if UK insurers lose their right to sell products across the continent, Reuters reported.
 
"If passporting is withdrawn then Dublin would be one of the places within Europe where we might look to base our European underwriting from," Admiral CFO Geraint Jones told the news agency.
 
"There is probably more logic in being based in a place where we already have an infrastructure and an operation," he added.
 
Jones said there would be no short-term decision.
 
Reuters noted that Ireland has emerged as insurers’ favoured alternative base to London due to its proximity and similar regulatory regime.
 
According to the news agency, Admiral is one of the largest car insurers in the UK, having a market share of more than 11%.
 
Admiral revealed its possible post-Brexit move after reporting a 4% rise in pre-tax profits and over 7% drop in its shares.
 
The insurer’s first-half dividend rose by 23% due to a strong solvency ratio that has made it possible to return £33 million to its shareholders.

Turnover in Admiral’s UK car insurance business increased by 16% during the first half of the year, but profit growth only went up by 2%.
 

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2 Comments
  • Richard Powell 01/10/2017 12:11:00
    On our renewal for Admiral for car insurance we considered changing from Admiral and Brexit came up in our discussion. Never has before and Admiral we have used many times but went with a UK insurer Tesco. I think going forward the insurances we have, home, life other cars with Zurich, Aviva etc my thought are should we now move each of these as they come up to UK insurance companies. Have no issues with EU insurers as have generally gone on price and service delivery but Brexit is adding another dimension as there seems to be no security on trade issues at the moment.
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  • Mike 01/10/2017 12:15:30
    Unfortunately (or fortunately) most insurers are global - Tesco, for example, is underwritten by Aioi Nissay Dowa Insurance Company of Europe Limited
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