Admiral reveals record profits
Admiral Group plc has announced a record group profit before tax of £405m for the year ended 31 December 2017.
The group maintained strong growth in 2017 with turnover up 15% to £2.96bn (2016: £2.58bn) and net revenue 11% higher at £1.1bn (2016: £1.0bn). Customer numbers increased 11% to 5.73 million (2016: 5.15 million). The group’s statutory profit before tax was £403.4m (2016: £278.4m) whilst its share of pre-tax profit was £405.4m (2016: £284.3m).
The group’s 2017 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 group’s 2016 profit before tax was adversely impacted by the change in the UK discount rate (commonly referred to as the ‘Ogden’ discount rate) used to value personal injury claims.
During 2017, the group’s UK Insurance business, consisting of UK Motor and UK Household, delivered strong growth in turnover of 14% to £2.35bn (2016: £2.06bn). Net revenue increased by nine per cent to £841.0m (2016: £770.9m). Customer numbers reached 4.6 million (2016: 4.1 million).
David Stevens, group chief executive officer, 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 and existing customers.’