Admiral profits motor ahead

Direct insurer Admiral announced a pre-tax profit of £202.5m up 11% over the previous year. Turnover rose 13% to £910m.

Highlights (2007 in brackets)

• Profit before tax up 11% at £202.5m (£182.1m)
• Final dividend of 26.5p per share, making total dividend of 52.5p for 2008 (43.8p)
• Turnover up 13% at £910m (£808m)
• Net revenue up 16% at £423m (£364m)
• Number of customers up 17% to 1.75 million from 1.49 million at 31 December 2007. In UK car insurance, customer numbers increased 15% to 1.59 million (from 1.38 million)
• UK car insurance profits up 27% to £179.9m from £142.2m
• Confused.com profits at £25.6m (£36.7m)
• Turnover from outside the UK £29.7m (up 80%) and 73,700 customers

Henry Engelhardt, group chief executive, said: “This is a good news story. For the fifth year out of five since becoming a listed company Admiral delivered record profits and the 2008 dividend will be the biggest in our history. In addition, Admiral is still hiring new staff in all its operations.

“Key to our success was the great result turned in by the UK business. We increased the number of customers by 15% by giving a combination of competitive prices and great service. Our combined ratio in the UK fell from 83% to 81% while premium income grew by 12% to £690m.

“As the UK business goes from strength to strength we are planting the seeds of our long term future by taking what we know and do well, internet and phone delivery of car insurance, to other countries.”