Overseas growth and reserve releases push Admiral’s profits over £500m

UK insurer Admiral has reported a healthy rise in turnover for 2019, and an improved combined ratio. Its profits also exceeded £500 million for the first time, on the back of substantial reserve releases and solid growth in overseas markets.

The group’s turnover was £3.46 billion, up from £3.28 billion in 2018. Its pre-tax profit was £526 million, up from £479 million in 2018, and its underwriting profit was £238 million, compared to £211 million in 2018. The group’s combined ratio was 88.6 percent, an improvement on the 2018 figure of 90.2 percent.

Following the announcement of his upcoming retirement in 2021, David Stevens, group chief executive officer, said:
“Admiral tends, year after year, to exhibit a relentless forward momentum, which my predecessor described as ‘going like a freight train’. Was 2019 another ‘freight train’ year? Very much so. In so many ways. It was a year which saw profits exceed £500 million for the first time, on the back of substantial reserve releases. We crossed the million mark in household policyholders, and added 200,000 new car insurance customers overseas.

“Alongside this rapid progress on many fronts, some data points were stubbornly stable. The number of consecutive years amongst the top performers in the ‘Best Companies’ list only nudged up from 19 years to 20. The percentage of staff saying they are proud to work for Admiral was stuck in a narrow band in the mid-90s, as was the percentage of customers who said they wanted to renew with Admiral following a claim.

“Consistently happy staff, consistently happy customers. Hopefully happy shareholders. I announced this morning that I am going to be stepping down as CEO in 12 months’ time. I fully expect that Admiral’s talented senior management, led by our very talented CEO designate, Milena Mondini, will be more than ready to maintain, or even stoke up, Admiral’s relentless momentum.”