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Admiral profit jumps 43% amid record customer numbers
Insurer Admiral posted a 43% jump in full-year pre-tax profit on Wednesday and declared a special dividend amid record customer numbers.
In the year to the end of December, pre-tax profit rose to £405.4m from £284.3m, with earnings per share up 49% to 117.2p. Group net revenue was up 11% to £1.13bn, while group customers also increased 11%, to 5.73 million.
Admiral said the results reflect higher UK insurance profits, an improved price comparison result and a lower loss in the international insurance segment, partially offset by higher other group charges and business development costs.
The company proposed a final dividend of 58p per share for the year, up from 51.5p in 2016. This included a normal dividend of 39.5p per share and a further special dividend of 18.5p, taking the total dividend for the year to 114p, up 11%.
Chief executive officer David Stevens said: "It's 25 years since the launch of Admiral. 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'.
"Beyond the pure financials, there's also a lot going on that helps build the longer-term prosperity of the group - notably our investment in widening our product range (van, travel, loans in 2017) in a way that helps us attract more customers, and understand and serve better both new & existing customers."
Admiral also said on Wednesday that it is considering setting up an insurance company and an insurance intermediary business in Spain to support its European operations, as a result of Brexit.
"Although uncertainty remains as to the outcome of the Brexit negotiations between the UK and the EU, the Group has adopted a prudent approach that will ensure it is well prepared in the event of a 'hard' Brexit which includes being ready to deal with the likely loss of passporting rights from the UK and Gibraltar into the EU."