Admiral profits jump as customer numbers expand

7th Mar 2024 08:35

(Sharecast News) - Admiral Group reported a group profit before tax of £442.8m in its annual results on Thursday, making for an increase of 23% from the prior year.

The FTSE 100 insurer said earnings per share saw an uptick of 17%, reaching 111.2p, while its return on equity climbed seven percentage points to 36% for 2023.

It recorded a 31% upswing in group turnover, reaching £4.18bn, with insurance revenue contributing £3.49bn, reflecting an 18% increase.

The company's customer base expanded to 9.73 million, up 6%, with both UK and international insurance customers seeing growth of 6% and 4%, respectively.

Admiral Money, the financial services arm of the group, saw its gross loans balances increase 8% to £0.96bn.

The firm's solvency ratio post-dividend stood at 200%, showing an increase of 20 percentage points.

Admiral's board proposed a final dividend of 52p per share, maintaining parity with the prior year, comprising a normal dividend of 35.4p and a special dividend of 16.6p.

The dividend was scheduled to be paid on 7 June, with the ex-dividend date set for 9 May.

Group chief executive officer Milena Mondini de Focatiis expressed satisfaction with the results, noting the company's commitment to growth and diversification amidst challenging market conditions.

"Our 30th anniversary is a good opportunity to remind ourselves of our growth story, from a Welsh startup to a £4.8bn business serving nearly ten million customers in five countries, driven by technical competence and continuous innovation across service, pricing, products, and distribution," she said.

"In 2023, we accelerated our UK diversification; we announced the intention to acquire the renewal rights for RSA's pet and home insurance businesses, improved results in all our main lines of business, and achieved double-digit growth in our electric vehicle book, supporting customers in transitioning to green mobility.

"Despite global uncertainties, our outlook is positive, benefitting from improved market conditions and a strengthened position, thanks to the discipline we maintained in the last year."

Group chair Mike Rogers echoed Mondini de Focatiis's sentiments, commending the company's resilience and strategic foresight in delivering consistent results.

"In the face of high inflation, Admiral remained resolute in ensuring peace of mind for our colleagues, customers, and shareholders.

"We have confidence in our diversified portfolio, agile business model, and unwavering commitment to achieving optimal outcomes for our customers. These factors position us strongly for continued success."

At 0941 GMT, Admiral Group shares were down 0.83% at 2,642p.

Reporting by Josh White for Sharecast.com.