Admiral reports record profits

Admiral Group has announced record profits before tax of £86.3 million for first the six months of this year – an increase of 26% over the same period in 2006.

Group turnover also rose 16% to £417.8 million.

Meanwhile, Confused.com made a profit of £19.7 million, up from £14.3 million in the second half of last year.

Other highlights include:

• Total interim dividend of 20.6p, up 70% (H1 2006: 12.1p)

• Vehicle count up 16% to 1.4 million (H1 2006: 1.2 million)

• Profit from ancillary products and services up 15% to £37.7m (H1 2006: £32.9 million)

Commenting on the results, Henry Engelhardt, chief executive of Admiral, said: “We are very pleased to again announce record results for the first half of 2007.

“The UK car insurance market continues to prove challenging, and we are delighted to have once again increased both underwriting and ancillary profits whilst substantially growing the number of vehicles insured.”

He continued: "As a result of continuing growth in the market for car insurance price comparison, Confused.com enjoyed [strong] growth. However, previously we have said that there will be more competition in this sector. Some of this competition went live during the first part of 2007 and more competitors are on their way. We will work hard to defend our leadership position in this growing market.”