Admiral Group plc (Admiral) achieved solid results despite the persistence of the COVID-19 pandemic and other factors that impacted the UK through 2021.
For the 12 months ended December 31, 2021 (FY21), Admiral’s group profit before tax, including continued operations, totalled £769.0 million, up 26% from £608.2 million in 2020 (FY20). Meanwhile, its group profit before tax, including discontinued operations, totalled £1,129.2 million during the same year, a dramatic increase of 77% from £637.6 million in FY20.
Overall, the group improved across all its key metrics, including exceeding eight million customers, increasing customer loyalty, and recording profits of £769 million.
Admiral group CEO Milena Mondini de Focatiis said the group’s results for FY21 were driven by unusual market conditions, its underwriting discipline, and focus on “doing the common, uncommonly well.”
“We continued to evolve our market-leading core insurance competencies in claims and risk selection. For example, the increased adoption of machine learning models has improved our pricing effectiveness and agility and put us in a good position to embrace changes, such as the new FCA general insurance pricing practices,” she said.
The strong performance of Admiral’s UK motor insurance was also a primary driver. Meanwhile, Admiral’s continued expansion of its customer proposition added more than half a million customers beyond UK motor in 2021 alone, representing around 40% of the group’s total customers.
Admiral also grew by double digits in its UK household and international businesses, despite the challenging global market conditions, with its loan stock balance now larger than pre-COVID-19 levels.
“We are pleased to see the results of our ability to export some of our competitive advantages to these new businesses, and we are also planting seeds for further diversification in the longer term through Admiral Pioneer, for example, with small business insurance,” Mondini de Focatiis said.
“I would like to thank all my colleagues for their hard work and continued focus on our customers. They are the key to Admiral’s success and have made my first year as group CEO so enjoyable.”
Admiral group chair Annette Court added: “Admiral is an agile business that continues to deliver long-term sustainable growth by adopting a test-and-learn approach to its evolution. Diversification is a key focus for the group, and I believe that Admiral is on the right course, and as we successfully execute our strategy, [we] will emerge even stronger. On behalf of the board, I would like to thank everyone at Admiral for their hard work and dedication, which made this year’s strong results possible.’’
Moving forward, Admiral aims to help more customers and contribute to secure communities’ future by substantially increasing its investments and committing to net zero by 2040 at the latest.