Admiral declares plans for EU subsidiary

Company also unveils 2017 results and a massive share boost for staff

Admiral declares plans for EU subsidiary

Insurance News

By Terry Gangcuangco

With results season still upon us, another insurer is happy to report positive figures – this time it’s Wales-headquartered Admiral Group with its “record profits” for 2017. However, it was other news revealed alongside those results that has really caught the headlines.

The British motor insurer revealed it would pay a special dividend and that each member of staff will earn £3,600 worth of free shares. Meanwhile, the firm also announced that it is considering setting up an EU subsidiary in Spain as a result of Brexit. The company already has businesses in the country and now wishes to set up an insurance company and broker there, having already sought the permission of the Spanish regulator.

Here are the numbers coming out of its earnings report:

  • Group’s share of pre-tax profit – £405.4 million (around SG$746.3 million), up 43%
  • Statutory profit before tax – £403.4 million (around SG$742.6 million), up 45%
  • Turnover – £2.96 billion, up 15%
  • Net revenue – £1.1 billion, up 11%
  • Customer numbers – 5.73 million, up 11%

Among the drivers of Admiral’s results was UK insurance, which generated higher profit. The provider said its insurance business – motor and household – in the UK posted strong turnover growth of 14% from 2016’s £2.06 billion to £2.35 billion. Net revenue climbed 9% to £841 million while customer numbers grew 12% to reach 4.6 million.

Meanwhile international insurance businesses registered a combined turnover of £449.8 million (around SG$828 million), a 23% rise from £365.9 million. Customer numbers went up 20% to 1.03 million while net revenue saw a 35% increase to £144.8 million.

“It’s 25 years since the launch of Admiral,” noted chief executive David Stevens. “2016 was only the second year we’d ever reported a year-on-year fall in profits. So it’s great to be back in the groove, with a 23rd year of ‘record profits’.”

As for Admiral’s price comparison businesses, the firm reported a combined profit of £7.1 million, excluding minority interests’ shares.

Full year dividend, at 114 pence, will be paid on June 01, 2018. 

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