2025 Group Solvency and Financial Condition Report (Report)

Contents Page

Summary 2

Additional information 6

Statement of Directors' Responsibilities 7

Audit Opinion 8

1. Business and Performance (Unaudited) 13

   1. Business 13

   2. Underwriting performance 18

   3. Investment performance 23

   4. Performance of other activities 24

   5. Any other information 25

2. System of Governance (Unaudited) 26

   1. General information on the system of governance 26

   2. Fit and proper requirements 29

   3. Risk management system including the own risk and solvency assessment (ORSA) 29

   4. Internal control system 30

   5. Internal audit function 32

   6. Actuarial function 32

   7. Outsourcing 33

   8. Any other information 33

3. Risk Profile (Unaudited) 34

   1. Underwriting risk 37

   2. Market risk 38

   3. Credit risk 40

   4. Liquidity risk 40

   5. Operational risk 40

   6. Other material risks 40

   7. Any other information 41

4. Valuation for Solvency Purposes (Audited) 42

   1. Assets 46

   2. Technical provisions 48

   3. Other liabilities 51

   4. Alternative methods of valuation 52

   5. Any other information 52

5. Capital Management (Audited) 53

   1. Own funds 53

   2. Solvency capital requirement and Minimum Capital Requirement 59

   3. Differences between the standard formula and any internal model used 60

   4. Non-compliance with the Minimum Capital Requirement and non-compliance with the Solvency Capital Requirement 60

   5. Any other information 60

Appendix 1 - Glossary 62

Appendix 2 - Quantitative Reporting Templates 63

This Admiral Group plc Solvency and Financial Condition Report (SFCR) has been prepared in compliance with Solvency II regulatory requirements. It contains a range of regulatory disclosures that support the information presented in the Quantitative Reporting Templates (QRTs) shown in Appendix 2.

The report is not intended to provide a comprehensive review of the Group's businesses and the markets in which they operate. Information on how these businesses are managed, and the performance of these businesses during the year is detailed in the Group's 2025 Annual Report. Where relevant, specific references to the Annual Report are made throughout this SFCR. It can be found at:

https://admiralgroup.co.uk/investor-relations/results-reports-and-presentations

This Group SFCR has been prepared in accordance with the relevant sections of the PRA Rulebook.

The Group has obtained supervisory waivers from the Prudential Regulatory Authority (PRA) and the Gibraltar Financial Services Commission (GFSC) to include solvency information relating to Solvency II regulated solo entities Admiral Insurance Company Limited (AICL) and Admiral Insurance (Gibraltar) Limited (AIGL) in this Group SFCR. The waiver from the PRA was extended on 26 February 2026 and is effective until 26 February 2031. The waiver from the GFSC granted on 5 May 2017 remains in effect.

The waivers were obtained as the Group's legal and governance structure means there is significant overlap in the disclosures for the Group and the solo entities. The waivers therefore allow stakeholders to access concise disclosures for all relevant entities in one report.

The Group has an insurance entity in Spain; Admiral Europe Compañía de Seguros, S.A. (AECS). This entity underwrites the Group's European business and is subject to the supervision of the Dirección General de Seguros y Fondos de Pensiones (DGSFP) in Spain. The European insurance entity is excluded from the qualitative and quantitative disclosures in Sections A to E as it has prepared a separate 2025 SFCR in line with the requirements of the DGSFP. This report can be found at:

https://www.admiraleurope.com/en/files/

All amounts in this report are presented in pounds sterling, rounded to the nearest £0.1 million, which is the Group's presentation currency. Rounding differences of +/- one unit can occur.

Some elements of this report are subject to external audit as detailed in the Audit Opinion later in the report.

Admiral Group plc is an established financial services provider offering Motor, Household, Travel, Pet and limited commercial insurance, as well as personal lending products. The Group now trades in four countries, namely the UK, France, Italy, and Spain, with the US business included in the business performance during 2025, but sold as at 31 December 2025. There are also offices in Gibraltar, Canada and India.

The most material businesses, currently, are the UK insurance businesses, although the bottom-line contribution from non-UK and non-insurance lines of business has increased.

The Group (both continued and discontinued operations) and its Solvency II regulated solo entities in the UK and Gibraltar, AICL and AIGL, recorded post-tax profits of £742.3 million, £47.4 million and £327.8 million respectively in 2025 (2024: of

£662.9 million, £62.6 million and £414.8 million respectively).

The table below splits the IFRS results between underwriting (as reported in the premiums, claims and expenses QRTs in Appendix 2 to this report), investment and other activities:

Section B of this report focuses on the Group's system of governance. The Board is collectively responsible for establishing the purpose, values and strategy of the Group and for promoting the long-term success of Admiral for the benefit of our shareholders and stakeholders. The Group Board provides oversight of the solo entities AICL and AIGL, each of which have their own Board and Committee structure.

The Board has delegated authority to several permanent Committees to deal with matters in accordance with written Terms of Reference. The principal Committees of the Group Board are the Audit, Remuneration, Risk, and Nomination & Governance Committees, each of which fully comply with UK Corporate Governance Code requirements.

Section B provides detail on how the system of governance works in practice, including a focus on the Group's remuneration policy, the system of internal control and the Solvency II key functions of Risk Management, Compliance, Internal Audit and Actuarial.

The Group Board is responsible for determining the Group wide risk strategy and risk appetite and its system of risk management and internal control. The Board has delegated the development, implementation and maintenance of the Group's risk management framework to the Group Risk Committee. This Committee then reports its activities to the Board and the Group Audit Committee for the purposes of reviewing and reporting on the overall effectiveness of risk management and internal control systems.

Section C provides further detail of the Group's approach to risk assessment and risk management. It also provides information on the Group's material risks, as shown by the Solvency Capital Requirement (SCR) sub-modules of the Group and its solo entities in the table below.

As can be noted from the table above, the material risk category for the Group, AICL and AIGL is Non-Life underwriting risk which (before diversification with other risk types) represents 64%, 112% and 72% of the SCRs of the Group and its solo entities, AICL and AIGL respectively (2024: 66%, 115% and 73%)

The reduced capital add-on, as notified by the PRA in August 2023, has continued to be used in solvency reporting for Group from September 2023 onwards.

Section D focuses on the Solvency II balance sheet and the valuation of assets and liabilities. In line with Solvency II rules, assets and liabilities on the Solvency II balance sheet are held at fair value, i.e. the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the valuation date.

Summary Solvency II balance sheets for the Group and its regulated solo entities are shown in the table below. Section D sets out the recognition and valuation basis for each material balance sheet class alongside a comparison to the IFRS valuation basis, in addition to further detail on the bases, methods and assumptions used in the calculation of the Solvency II technical provisions.

The Group manages its capital to ensure that all entities within the Group can continue as going concerns and ensure that regulated entities meet regulatory requirements with an appropriate margin. Subsidiaries return excess capital above these levels to the Group parent company via dividend payments.

The Group and its regulated solo entities report strong solvency positions at 31 December 2025. The solvency positions reported in the Annual QRTs for 2025 and 2024 are summarised in the table below:

A reconciliation of excess of assets over liabilities to Own Funds is provided below:

SCR for Other Financial Sectors (unaudited)

The SCR for Other Financial Sectors relates to Admiral Money, a personal unsecured lending business, carried out by Admiral Financial Services Limited (AFSL), and also Admiral Financial Services Italia S.P.A. (AFSI).

AFSL and AFSI are recognised at net asset value, as Solvency II financial institutions. This forms part of the reconciliation from Excess of Assets over Liabilities to Own Funds.

The PRA Rulebook defines a 'non-regulated undertaking carrying out financial activities' as a Solvency II non-regulated undertaking which carries out one or more of the activities referred to inany of the services and activities referred to in Part 3 and Part 3A of Schedule 2 to the Regulated Activities Order. The contribution to the Group capital requirement is based on relevant sectoral rules and the Group has included a capital requirement of £102.2 million as at 31 December 2025 (31 December 2024: £75.6 million) to reflect the risks associated with the loans businesses.

Reconciliation to previously reported Solvency Ratio

The Group solvency ratio presented in this report is different to the solvency ratio reported in the Group's 2025 Annual Report for the following reasons:

• Change in valuation date: The solvency ratio in the Annual Report is prepared at a different valuation date, taking into consideration the additional own funds generated post year end, up to the approved dividend payment date;

• Other (including impact of dynamic Capital Add-On, 'CAO'): A different CAO is used, with the dynamic add-on (the Group's own assessment of the capital add-on) reported in the 2025 Annual Report being unapproved and therefore excluded from the SFCR solvency calculations. The Annual Report solvency ratio also excludes the impact of changes made arising from the reporting finalisation process.

The table below shows the impact of these moves:

The solvency ratio reported in the Group's Annual report (using the Group's own assessment of the capital add-on) is the basis on which the Group's capital is managed, being the more accurate reflection of the Group's risk profile and solvency surplus on an on-going basis.

The Group has been developing an internal capital model to be used to calculate the Group, AICL and AIGL capital requirements. Intense work has continued over the past year and the Group has now submitted its formal application for approval to its main prudential regulators.

The regulators' review will take some time, and we will communicate further on the results of the process and the impact on Admiral's capital position and solvency risk appetite soon.

Sale of Elephant

As announced in January 2026, the Group has completed the sale of its US motor insurance business, including Elephant Insurance Company and Elephant Insurance Services ("Elephant") to J.C. Flowers & Co. ("J.C. Flowers") a global private investment firm dedicated to investing in the financial services industry, effective as at 31 December 2025. In the IFRS results, the Elephant result for 2025 is presented separately as a discontinued operation within the Group results, with the prior year comparative results re-presented on the same basis. In section A, business performance is shown for both continued and discontinued operations.

Post balance sheet events

1. Flock acquisition

   As announced in February 2026, the Group has reached an agreement to acquire 100% of the shares of Flock Limited, a digital commercial fleet insurance provider. The transaction values the equity in Flock at £80 million and is subject to regulatory approval. The acquisition is expected to be completed in Q2 2026 and will be funded through existing resources and/or credit facilities. As at 31 December 2025, the Group had a 3% investment in Flock.

2. Geopolitical instability

The impact of the ongoing conflict in the Middle East on the Group has led to a review of the Group's exposure in respect of its Solvency position. From a reported solvency perspective the impact has been assessed as immaterial at this time. The Group continues to monitor the situation closely.

No further events have occurred since the reporting date that materially impact these financial statements.

The Directors are responsible for ensuring that the SFCR is properly prepared in all material respects in accordance with the Prudential Regulatory Authority (PRA) rules and SII Regulations.

The PRA Rulebook for SII firms in Rule 6.1(2) and Rule 6.2(1) of the Reporting Part requires that the Group must have in place a written policy ensuring the ongoing appropriateness of any information disclosed and that the Group must ensure that its SFCR is subject to approval by the Directors.

The Board of Directors confirm that, to the best of their knowledge:

1. Throughout the financial year in question, the Group and its solo insurance undertakings have complied in all material respects with the requirements of the PRA rules and SII Regulations as applicable; and

2. It is reasonable to believe that, at the date of the publication of the SFCR, the Group and its solo insurance undertakings continue to comply, and will continue so to comply in future.

Report of the external independent auditor to the Directors of Admiral Group plc ('the Company') pursuant to Rule 4.1 (2) of the External Audit Part of the PRA Rulebook applicable to Solvency II firms

Report on the Audit of the relevant elements of the Group Solvency and Financial Condition Report ('SFCR')

Except as stated below, we have audited the following documents prepared by the Company as at 31 December 2025:

• The 'Valuation for solvency purposes' and 'Capital Management' sections of the Group SFCR of the Company as at 31 December 2025, ('the Narrative Disclosures subject to audit');

• Group templates IR.02.01.02, IR.22.01.22, IR.23.01.04, IR.25.04.22, IR.32.01.22 ('the Group Templates subject to audit'); and

• Solo Templates IR.02.01.02, IR.12.01.02, IR.17.01.02, IR.22.01.21, IR.23.01.01, IR.25.04.21, IR.28.01.01 in respect of Admiral

  Insurance (Gibraltar) Limited and Admiral Insurance Company Limited ('the Solo Templates subject to audit').

  The Narrative Disclosures subject to audit and the Group Templates and Solo Templates subject to audit are collectively referred to as the 'relevant elements of the Group SFCR'.

  We are not required to audit, nor have we audited, and as a consequence do not express an opinion on:

• The Other Information which comprises:

• the 'Executive Summary', 'Business and performance', 'System of governance' and 'Risk profile' elements of the Group SFCR;

• Group templates IR.05.02.01, IR.05.03.02, IR.05.04.02;

• Solo templates IR.05.02.01, IR.05.03.02, IR.05.04.02, IR.19.01.21;

• the written acknowledgement by management of their responsibilities, including for the preparation of the Group SFCR ('the Responsibility Statement');

• Information which pertains to an undertaking that is not a Solvency II undertaking and has been prepared in accordance with PRA rules or UK law other than the PRA Rulebook for Solvency II firms ('the sectoral information').

  To the extent the information subject to audit in the relevant elements of the Group SFCR includes amounts that are totals, sub-totals or calculations derived from the Other Information, we have relied without verification on the Other Information.

  In our opinion, the information subject to audit in the relevant elements of the Group SFCR of the Company as at 31 December 2025 is prepared, in all material respects, in accordance with the financial reporting provisions of the PRA Rulebook for Solvency II firms, as modified by relevant supervisory modifications, and as supplemented by supervisory approvals and determinations.

  Basis for opinion

  We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK), including ISA (UK) 800 and ISA (UK) 805, and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the relevant elements of the Group Solvency and Financial Condition Report section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the Group SFCR in the UK, including the Financial Reporting Council's (the 'FRC's') Ethical Standard as applied to public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

  Emphasis of Matter - Basis of Accounting

  We draw attention to the 'Valuation for solvency purposes' section of the Group SFCR, which describe the basis of accounting. The Group SFCR is prepared in compliance with the financial reporting provisions of the PRA Rulebook for Solvency II firms, and therefore in accordance with a special purpose financial reporting framework. The Group SFCR is required to be published, and intended users include but are not limited to the PRA. As a result, the Group SFCR may not be suitable for another purpose. Our opinion is not modified in respect of these matters.

  Conclusions relating to going concern

  In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the SFCR is appropriate.

  Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included:

• we obtained an understanding of the relevant controls relating to the Board's going concern assessment process;

• we inspected the Group ORSA ('Own Risk and Solvency Assessment') to support our understanding of the key risks faced by the Group, its ability to continue as a going concern, and the longer-term viability of the Group;

• we evaluated the Board's going concern assessment in light of the current macroeconomic uncertainties;

• we considered the available cash and cash equivalents balance at year-end and assessed how this is forecast to fluctuate over a period of at least 12 months from the date of signing the financial statements in line with the Board's forecast performance. This analysis included assessing the amount of headroom in the forecasts considering cash and regulatory liquidity requirements;

• we assessed management's stress testing and reverse stress testing over the projected profitability, solvency and liquidity positions and the likelihood of the various scenarios that could adversely impact upon the Group's liquidity and solvency headroom;

• we obtained and inspected correspondence between the Group and its regulators, as well as reviewed the Group Risk Committee meeting minutes, to identify any items of interest which could potentially indicate either non-compliance with regulation or potential litigation or regulatory action held against the Group; and

• assessing the appropriateness of the Going Concern disclosures included in the SFCR.

  Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

  Other Information

  The Directors are responsible for the Other Information.

  Our opinion on the relevant elements of the Group SFCR does not cover the Other Information and we do not express an audit opinion or any form of assurance conclusion thereon.

  Our responsibility is to read the Other Information and, in doing so, consider whether the Other Information is materially inconsistent with the relevant elements of the Group SFCR, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the relevant elements of the Group SFCR themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this Other Information, we are required to report that fact.

  We have nothing to report in this regard.

  Responsibilities of Directors for the Group Solvency and Financial Condition Report

  The Directors are responsible for the preparation of the SFCR in accordance with the financial reporting provisions of the PRA Rulebook for Solvency II firms which have been modified by the modifications and/or waivers, and supplemented by the approvals and determinations made by the PRA under section 138A and/or section 138BA of FSMA and the PRA Rulebook for Solvency II firms.

  The Directors are also responsible for such internal control as they determine is necessary to enable the preparation of a Group SFCR that is free from material misstatement, whether due to fraud or error.

  Auditor's Responsibilities for the Audit of the relevant elements of the Group Solvency and Financial Condition Report

  It is our responsibility to form an independent opinion as to whether the relevant elements of the Group SFCR are prepared, in all material respects, with financial reporting provisions of the PRA Rulebook for Solvency II firms which have been modified by the modifications and/or waivers, and supplemented by the approvals and determinations made by the PRA under section 138A and/or section 138BA of FSMA and the PRA Rulebook for Solvency II firms.

  Our objectives are to obtain reasonable assurance about whether the relevant elements of the Group SFCR are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decision making or the judgement of the users taken on the basis of the Group SFCR.

  A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at https:// https://www.frc.org.uk/auditorsresponsibilities. The same responsibilities apply to the audit of the Group SFCR.

  Extent to which the audit was considered capable of detecting irregularities, including fraud

  Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

  We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management, internal audit, and the Audit Committee about their own identification and assessment of the risks of irregularities.

  We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that:

• had a direct effect on the determination of material amounts and disclosures in the SFCR. These included Solvency II as implemented in the UK and relevant tax legislation etc; and

• do not have a direct effect on the SFCR but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included Companies Act 2006 and related Company Law, the company's operating licence, and the Financial Conduct Authority and the Prudential Regulation Authority regulations.

  We discussed among the audit engagement team including relevant internal specialists such as tax, actuarial, financial instruments, IT, climate and industry specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

  As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:

  Valuation of gross insurance Technical Provisions for UK Motor Insurance

• We obtained an understanding of, and tested, the relevant controls governing the selection of the incurred claims development assumptions for large bodily injury claims in the UK motor insurance business, as well as the wider process supporting the valuation of the liability for incurred claims;

• We obtained and inspected the reports from management and assessed management's incurred claims development assumptions for UK motor insurance business;

• We benchmarked the assumptions against available industry data and considered the comparison in the context of the risk profile of the Group's portfolio and the year-on-year changes in these assumptions;

• We undertook a graphical analysis of incurred development patterns to assess and challenge the assumptions considering the trends and patterns observed; and

• We obtained and inspected the external actuary's reports and performed an assessment of the incurred claims development assumptions, including evaluating how these compare to management's selected assumptions, to support our assessment of management's incurred claims development assumptions for UK motor insurance business.

  In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, our procedures included testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

  In addition to the above, our procedures to respond to the risks identified included the following:

• reviewing SFCR disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• enquiring of management, internal audit and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

• reading minutes of meetings of those charged with governance, reviewing correspondence with the Prudential Regulation Authority and Financial Conduct Authority, reviewing internal audit reports, and reviewing correspondence with HMRC.

  Report on Other Legal and Regulatory Requirements Sectoral Information

  In our opinion, in accordance with Rule 4.2 of the External Audit Part of the PRA Rulebook for Solvency II firms, the sectoral information has been properly compiled in accordance with the PRA rules and UK law relating to that undertaking from information provided by members of the group and the relevant insurance group undertaking.

  Other Information

  In accordance with Rule 4.1 (3) of the External Audit Part of the PRA Rulebook for Solvency II firms we are also required to consider whether the Other Information is materially inconsistent with our knowledge obtained in the audit of Admiral Group plc's statutory financial statements. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

  We have nothing to report in relation to this matter.

  Use of our Report

  This report is made solely to the Directors of Admiral Group plc in accordance with Rule 4.1 (2) of the External Audit Part of the PRA Rulebook for Solvency II firms. We acknowledge that our report will be provided to the PRA for the use of the PRA solely for the purposes set down by statute and the PRA's rules. Our audit work has been undertaken so that we might state to the insurer's Directors those matters we are required to state to them in an auditor's report on the relevant elements of the Group SFCR and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the PRA, for our audit work, for this report or for the opinions we have formed.

  
  
  

  Adam Addis (Senior Statutory Auditor) For and on behalf of Deloitte LLP Statutory Auditor London, United Kingdom

  9 April 2026

  Appendix - relevant elements of the Group Solvency and Financial Condition Report that are not subject to audit

  Group standard formula

  The relevant elements of the Group SFCR that are not subject to audit comprise:

• The following elements of template IR.02.01.02 - Row R0565 - Transitional (TMTP) - life

• The following elements of template IR.22.01.22

  • Column C0030 - Impact of transitional measure on technical provisions

• The following elements of Group template IR.23.01.04

  • Rows R0410 to R0440: Own funds of other financial sectors

  • Row R0690: Ratio of Eligible own funds to group SCR including other financial sectors and the undertakings included in D&A

• Elements of the Narrative Disclosures subject to audit identified as 'unaudited'. Solo standard formula The relevant elements of the SFCR that are not subject to audit comprise:

• The following elements of template IR.02.01.02

  • Row R0565 - Transitional (TMTP) - life

• The following elements of template IR.12.01.02

  • Rows R0140 to R0180: Amount of transitional measure on technical provisions

• The following elements of template IR.22.01.21

  • Column C0030 - Impact of transitional measure on technical provisions

• Elements of the Narrative Disclosures subject to audit identified as 'unaudited'.

1. Business and Performance (Unaudited)
   1. Business

      General Information

      Admiral Group plc ('the Group') is one of the UK's largest car insurance providers. In addition to offering car insurance in the UK, the Group also writes household, van, travel, and pet insurance, and has a a limited commercial insurance business.

      Outside the UK, the Group underwrites car insurance in Italy, Spain, and France (with the US business disposed of as at 31 December 2025), household insurance in France and pet insurance in Italy.

      The Group also includes Admiral Money, which provides unsecured personal loans and car finance in the UK through Admiral Financial Services Limited, Admiral Financial Services Italia which provides unsecured lending in Italy, and a law firm, Admiral Law Limited, which provides legal services to customers of the Group who have suffered a personal injury or other uninsured loss as a result of a non-fault road traffic accident.

      Admiral Group plc is a company incorporated in the United Kingdom with a registered office at Tŷ Admiral, David Street, Cardiff CF10 2EH. Its shares are listed on the London Stock Exchange.

      The Group and its UK regulated insurance entity, Admiral Insurance Company Limited is subject to supervision by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) in the UK. The contact details for these supervisory authorities are as follows:

      Contact details PRA FCA

      Name Prudential Regulation Authority Financial Conduct Authority Address Bank of England 20 Moorgate London EC2R 6DA

      12 Endeavour Square London

      E20 1JN

      Where relevant, Group subsidiaries outside of the UK are subject to financial supervision by the local supervisory authority.

      The Group's insurance entity registered in Gibraltar, Admiral Insurance (Gibraltar) Limited (AIGL), is subject to Solvency II regulation and is supervised by the Gibraltar Financial Services Commission. The contact details for this supervisory authority are as follows:

      Contact details GFSC

      Name Gibraltar Financial Services Commission Address PO Box 940 Suite 3, Ground Floor Atlantic Suites Europort Avenue GX11-1AA Gibraltar

      The Group's insurance entity registered in Spain, Admiral Europe Compañía de Seguros, S.A. (AECS), is subject to Solvency II regulation and is supervised by the Dirección General de Seguros y Fondos de Pensiones (DGSFP). It has prepared a separate 2025 Solvency and Financial Condition Report in line with the requirements of the DGSFP.

      The contact details for this supervisory authority are as follows:

      Contact details DGSFP

      Name Dirección General de Seguros y Fondos de Pensiones Address Paseo de la Castellana, 44. 28046 Madrid

      Details of the Group's auditor are as follows:

      Contact details Deloitte

      Name Deloitte LLP Address 1 New Street Square London

      EC4A 3HQ

      As noted above, the Group is listed on the London Stock Exchange. At 31 December 2025, the Company's issued share capital comprised a single class of shares referred to as ordinary shares. Details of the share capital and shares issued during the year can be found in the Group's 2025 Annual Report (note 12d to the Group financial statements).

      Other than as stated below, as far as the Company is aware, there are no persons with significant direct or indirect holdings in the Company. Information provided to the Company pursuant to Rule 5 of the FCA's Disclosure and Transparency Rules ('DTRs') is published on a Regulatory Information Service and on the Company's website.

      The Company received notifications in accordance with the FCA's DTRs of the following notifiable interests in the voting rights in the Company's issued share capital:

      As at 31 December 2025

      Shareholder Number of shares % voting rights

      Date of notification

      Henry Engelhardt & Diane Briere de I'Isle	20,277,027	6.7%	27 March 2023
      BlackRock Inc.	17,849,752	5.8%	7 December 2023
      Moondance Foundation	15,400,000	5.1%	27 March 2023
      Rothschild and Co Wealth Management UK Limited	15,321,078	5.0%	3 January 2024
      Mawer Investment Management Ltd.	14,885,428	5.0%	1 April 2021
      FMR LLC	14,847,102	5.0%	16 March 2022
      Vanguard Group Holdings	12,560,052	4.1%	pre-2015

      The percentage of voting rights detailed above were calculated at the time the relevant disclosures were made in accordance with the DTRs. The DTRs require notification when the percentage voting rights (through shares and financial instruments) held by a shareholder reaches, exceeds or falls below an applicable threshold. The information provided above was correct at the date of notification, however, the date the notification was received may not have been within the financial year under review. It should be noted that these holdings are likely to have changed since the Company was notified. However, notification of any change is not required until the next notifiable threshold is crossed.

      Group Structure

      The chart below shows the major subsidiaries of the Group's Parent Company, grouped by Solvency II classification. For further details of the subsidiary undertakings, country of incorporation and class of shares held by the parent company refer to the Group's 2025 Annual Report (note 12e to the Group financial statements).

      
      
      

      The Group's major activities are summarised in the following sections:

      Insurance Undertakings (Solvency UK, Solvency II and Third Country undertakings)

      At 31 December 2025, the Group had insurance businesses in four geographical locations: the UK, Italy, Spain, and France. As noted above, AICL and AIGL report under UK Solvency II, AECS reports under Solvency II (EIOPA).

      The table below summarises the Group's material Solvency UK lines of business:

      Motor Vehicle Liability Private motor insurance, capturing bodily injury liabilities (including liabilities that may

      potentially settle by way of Periodic Payment Order in the future) and third-party property damage. Commercial motor insurance capturing courier fleets, business fleets such as trades people and service vehicles, along with short-term rental companies.

      Motor Vehicle Other Private motor insurance, capturing accident damage liabilities (including fire, theft

      and windscreen liabilities).

      Fire and damage to other property Household insurance, capturing accidental damage, escape of water, fire, weather

      and subsidence liabilities.

      General Liability and other insurance These lines are grouped together given lower values: Household insurance capturing

      public liability risks; Legal expenses capturing any legal expenses and cost of litigation; Marine, aviation and transport insurance capturing damages, loss or liabilities at sea; Medical expenses that are not covered in any other lines of business.

      Assistance and Miscellaneous Financial Loss Annuities stemming from Non-Life insurance contracts and relating to insurance obligations other than health insurance obligations

      Any other risks arising from travel insurance, pet insurance and insurance products that supplement the core private motor and household insurance products.

      Private motor insurance liabilities arising through claims settled as Periodic Payment Orders. The Group has no Non-Life insurance contracts relating to health insurance obligations.

      Ancillary Services Undertakings

      The Group's insurance intermediaries are classified as Ancillary Services Undertakings for Solvency UK purposes. These entities are non-regulated (as per the definition in the PRA Rulebook) with principal activities that are deemed to be ancillary to the Group's insurance undertakings. The most material entity is EUI Limited which provides intermediary services for insurance underwriting in the UK.

      Other Financial Sectors

      The Group's subsidiaries, Admiral Financial Services Limited ('AFSL') and Admiral Financial Services Italia S.P.A. are classified as financial institutions under Solvency UK, and as such are reported within Own Funds as "Other Financial Sectors". The subsidiaries provide unsecured personal loans, car finance and second charge mortgages in the UK, and unsecured personal loans in Italy.

      Seren One Limited, Seren Two Limited and Seren Three Limited are Special Purpose Entities ('SPE') set up by the Group in relation to Admiral Money, whereby the Group has securitised certain loans by the transfer of the loans to the SPE. In addition, a further SPE, Contigo SPV S.r.l, has been set up in respect of the Group's Italian loans business AFSI. The securitisation enables a subsequent issuance of debt by the SPE to investors who gain the security of the underlying assets as collateral.

      Strategic Participations

      All other entities in the Group are classified as Strategic Participations. In 2025 the principal activities were legal services (Admiral Law).

      Significant Events during the reporting period

      Sale of Elephant

      As announced in January 2026, the Group has completed the sale of its US motor insurance business, including Elephant Insurance Company and Elephant Insurance Services ("Elephant") to J.C. Flowers & Co. ("J.C. Flowers") a global private investment firm dedicated to investing in the financial services industry, effective as at 31 December 2025. The Elephant result for 2025 is presented separately as a discontinued operation within the Group results, with the prior year comparative results re-presented on the same basis.

      Going concern, Viability and Emerging Risks

      In accordance with the UK Corporate Governance Code, the Board must confirm that it considers the going concern basis of accounting appropriate. In considering this requirement, the Directors have taken into account the factors outlined in note 1 to the financial statements on page 213 of the 2025 Annual Report and Accounts The Directors have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report, and that it is, therefore, appropriate to adopt the going concern basis in preparing the consolidated financial statements.

      In accordance with the UK Corporate Governance Code, the Directors have assessed the viability of the Group. The Viability Statement, which supports the going concern basis above, is included in the Strategic Report on page 105.

      The management of emerging risks is a key element of Admiral's strategic risk management, and emerging risks and opportunities continued to be reviewed throughout 2025.

      Admiral Group considers emerging risks to be 'a new risk, changing risk, or novel combination of risks, which may present both opportunities and threats, and for which the broad impact, likelihood, and timescale to crystallisation are not yet well understood'. Emerging risk management, therefore, consists in working to identify these risks, the potential threats and opportunities they may pose, and to provide an estimate as to the timescale and magnitude of their impact. As emerging risks are inherently unpredictable and difficult to quantify, emerging risk management processes are designed to provide context and data that can inform a change in strategy, management behaviour, ways of working or risk management.

      Emerging risks are identified via horizon scanning. This is conducted by the Group Risk Management Function and consists of an extensive literature review, consultations, focus sessions with internal working groups, and interviews with internal stakeholders, subject matter experts, and external specialists. The Group Risk Management Function assesses emerging risks using an internally-developed framework, which includes qualitative and quantitative analysis to grade each emerging risk on a scale designed to be comparable across entities and compatible with the management of operationalised risks.

      Evaluation of the potential impact to Admiral includes consideration of how the risk may interact with existing principal risks and uncertainties ('PR&Us')

      Admiral's emerging risk radar captures an assessment of potential impact and time to crystallisation for emerging risks. It categorises each risk into four broad risk segments: (a) political, economic and social; (b) legal and regulatory; (c) technology; and (d) environmental.

      The highest priority risks are frequently the subject of targeted analysis provided to, and discussed by, forums such as the Group Risk Committee. This helps to ensure management awareness of issues such as severe weather events or risks to supply chains and products, enabling more informed decision making, driving the precautionary deployment of management actions and mitigating controls, and supporting opportunity analysis and strategic goal setting.

      The impact of the ongoing conflict in the Middle East on the Group is currently limited, given that it does not operate in the region and has limited direct exposure through its investment portfolio. However, the conflict, particularly if prolonged, has the potential to adversely impact global economic conditions, including increasing inflationary pressures, supply chain disruption and heightened volatility in financial markets. The Group continues to monitor the situation closely. At the date of this report, no significant changes to the Group's principal risks and uncertainties or solvency position are noted.

   2. Underwriting performance

      The tables below show the Group's underwriting performance (premiums, claims and expenses in line with QRTs IR.05.01 and IR.05.02) summarised by Solvency UK line of business and by geographical location. The tables are prepared on a financial statement basis; the underwriting profit below is reconciled to the IFRS Insurance service result in this section, whilst total profit is reconciled to the reported IFRS profit in Section A.4 below.

      The underwriting performance in the tables below is comprised of the following:

      • Written and earned premiums net of reinsurance

      • Insurance claims net of reinsurance recoveries

      • Insurance service operating expenses net of reinsurance recoveries.

        Note that in the table below net finance expenses, which relate to the unwind of discounting on claims incurred, is presented as part of "Investment performance" in section A.3 in line with the IFRS 17 presentation.

        In addition, the underwriting performance analysis excludes other revenue generated from the sale of additional products alongside the core insurance policies, and also includes share scheme expenses (net of reinsurer's recovery of allocated share scheme expenses). Therefore, both the UK insurance underwriting result above and combined international underwriting loss is different to the segment results presented in the Group's 2025 Annual Report.

        Other revenue generated by the UK and International businesses is reported within Section A.4 below (Performance of Other Activities).

        Analysis by Line of Business

        The first table below shows that the Group achieved an underwriting profit of £507.8 million in 2025, an increase of £79.3 million from 2024 (£428.5 million).

        The improvement in the underwriting result is driven by a very strong 2024 underwriting year continuing to earn through in UK Motor, along with a stronger result in Other personal lines insurance.

        Further detail is provided in the geographical analysis below and in the Strategic Report within the Group's 2025 Annual Report.

        As noted on the QRTs in Appendix 2, premiums, claims and expenses within Group insurance businesses are not typically allocated to these individual lines of business for the purposes of internal or external reporting and therefore simplifications have been used to allocate premiums, claims and expenses for the purposes of QRT disclosure.

        The split of underwriting profit by line of business shows that the motor insurance lines of business (motor vehicle liability, motor vehicle other and Life (relating to PPOs) report a combined profit of £446.1 million (2024: £397.6 million). The increase in profit is aligned to the strong performance within UK and positive recovery in the performance of European Motor compared to 2024, as described in further detail below.

        The Fire and Damage to Property and General Liability and other lines can be predominantly attributed to by UK Household business followed by other insurance business described in General Liability above. A total underwriting profit of £30.5 million (2024: £15.7 million) is reported. The positive result in UK Household is the result of continued growth in customers and premiums through both organic growth and as a result of the More Than acquisition, along with a lower charge from quota share given profit commission is now earning through on the strong 2024 underwriting year.

        Finally, the Assistance and Miscellaneous Financial Loss lines of business primarily relate to the ancillary products underwritten by the Group and contribute an underwriting profit of £31.2 million (2024: £15.2 million).

        Motor vehicle liability

        Other motor

        Fire and other damage to property

        General liability and

        other

        Misc. financial

        Annuities stemming from non-

        life insurance contracts

        2025

        £m insurance

        insurance

        insurance

        insurance Assistance

        loss

        (Life) Total

        Gross written premium Reinsurers' share	2,767.8 (292.3)	1,192.9 (225.8)	487.3 (367.1)	76.4 (8.1)	153.8 (0.8)	135.8 -	- -	4,814.0 (894.1)
        Net written premium	2,475.5	967.1	120.2	68.3	153.0	135.8	-	3,919.9
        Gross earned premium	2,828.4	1,214.0	502.5	70.6	141.4	117.6	-	4,874.5
        Reinsurers' share	(262.9)	(224.8)	(371.5)	(13.0)	(0.8)	-	-	(873.0)
        Net earned premium	2,565.5	989.2	131.0	57.6	140.6	117.6	-	4,001.5
        Net claims1	(1,717.9)	(510.0)	(97.0)	(26.1)	(70.6)	(67.5)	(5.2)	(2,494.3)
        Expenses incurred	(593.3)	(281.9)	(18.6)	(16.4)	(46.6)	(42.3)	(0.3)	(999.4)
        Solvency II underwriting profit / (loss)	254.3	197.3	15.4	15.1	23.4	7.8	(5.5)	507.8
        Insurance revenue included in IFRS insurance service result								291.8
        Investment fees and OLC in Solvency result								3.6
        IFRS Insurance service result (continued and discontinued)2								803.2
        Insurance result from discontinued operations (US Operations)								(16.9)
        Insurance service result reported								786.3
        Net share scheme expenses included in Solvency II result								48.5
        Underwriting result from continuing operations								834.8

        1. Gross Claims and Reinsurers Share are disclosed on an undiscounted basis only in the QRT, with only net claims presented on a discounted basis, thereby aligning to the IFRS treatment. Further detail can be seen in IR.05.04 in appendix 2.

        2. Comprised of insurance service result (continuing) of £786.3 million and Elephant Insurance Service result of £16.9 million.

        Insurance revenue included in IFRS insurance service result	281.7
        IFRS Insurance service result	710.2
        Net share scheme expenses included in Solvency II result	36.9
        Underwriting result reported	747.1

        The following table shows the comparative underwriting performance for 2024:

        								2024
        			Fire and				Annuities stemming from non-
        	Motor vehicle		other damage to	General liability and		Misc.	life insurance
        	liability	Other motor	property	other		financial	contracts
        £m	insurance	insurance	insurance	insurance	Assistance	loss	(Life)	Total
        Gross written premium	2,693.8	1,378.2	426.7	17.8	40.4	274.9	-	4,831.8
        Reinsurers' share	(337.2)	(232.9)	(307.3)	(8.9)	-	(1.0)	-	(887.3)
        Net written premium	2,356.6	1,145.4	119.3	8.9	40.4	273.9		3,944.5
        Gross earned premium	2,566.4	1,334.7	370.6	13.9	36.7	172.2	-	4,494.5
        Reinsurers' share	(320.6)	(213.6)	(276.3)	(7.9)	-	(0.9)	-	(819.4)
        Net earned premium	2,245.7	1,121.1	94.3	6.0	36.7	171.2	-	3,675.0
        Net claims	(1,463.8)	(670.7)	(52.2)	(3.9)	(25.6)	(80.0)	2.9	(2,293.3)
        Expenses incurred	(519.5)	(317.2)	(23.8)	(4.7)	(4.8)	(82.4)	(0.8)	(953.2)
        Solvency II underwriting profit / (loss)	262.4	133.1	18.2	(2.5)	6.4	8.8	2.1	428.5

        Analysis by Geographical Location

        The tables below show a breakdown the underwriting performance by geographic location for both 2025 and 2024:

        						2025
        £m	UK	USA	Italy	Spain	France	Total

        Gross written premium Reinsurers' share Net written premium

        4,036.9 157.0 242.5 124.3 253.3 4,814.0

        (500.7) (20.5) (110.4) (90.8) (171.8) (894.2)

        3,536.2 136.5 132.1 33.5 81.5 3,919.8

        Gross earned premium Reinsurers' share Net earned premium Net claims Expenses incurred

        Solvency II underwriting profit / (loss)

        4,096.7 177.4 244.3 120.6 235.5 4,874.5

        (501.3) (14.4) (107.4) (88.1) (161.8) (873.0)

        3,595.4 163.0 136.9 32.5 73.7 4,001.5 (2,232.2) (91.0) (96.4) (24.7) (50.0) (2,494.3)

        (813.7) (56.6) (44.7) (31.9) (52.5) (999.4)

        549.5 15.4 (4.2) (24.1) (28.8) 507.8

        £m	UK	USA	Italy	Spain	France	2024 Total
        Gross written premium	4,069.2	189.0	247.5	116.1	210.0	4,831.8
        Reinsurers' share	(474.1)	(50.3)	(133.8)	(84.2)	(145.1)	(887.5)
        Net written premium	3,595.1	138.6	113.7	32.0	64.9	3,944.3
        Gross earned premium	3,719.2	211.7	249.4	111.2	202.9	4,494.5
        Reinsurers' share	(412.9)	(50.3)	(134.2)	(81.1)	(140.8)	(819.4)
        Net earned premium	3,306.3	161.3	115.2	30.1	62.1	3,675.0
        Net claims	(2,032.4)	(106.3)	(90.9)	(23.3)	(40.5)	(2,293.3)
        Expenses incurred	(776.7)	(58.0)	(50.2)	(26.8)	(41.7)	(953.2)
        Solvency II underwriting profit / (loss)	497.2	(2.9)	(25.8)	(19.9)	(20.1)	428.5

        It can be seen from the above that the UK Insurance business generates the majority of the Group underwriting profit of

        £549.5 million (2024: £497.2 million), with the Group's International businesses in total contributing an underwriting loss of

        £41.7 million (2024: loss of £68.7 million). Note that the above results exclude other revenue related to insurance (such as instalments and administration fees) and coinsurer profit commission, and include net share scheme costs.

        The improvement in the underwriting result is driven by the UK insurance businesses, both UK Motor and UK Other personal lines including UK Home, Travel and Pet insurance. In UK Motor, IFRS profit was higher than 2024 with strong profitability from underwriting year 2024 continuing to earn through, and a disciplined approach to growth in 2025 resulting in a strong current year combined ratio. In UK Household Insurance, profit increased significantly as a result of a continued strong growth coupled with profit commission on the 2024 underwriting year now being recognised, whilst UK travel reported increased profits and UK Pet achieved break even for the first time.

        As stated above, it should be noted that the results above exclude the impact of instalment income and administration fees. In France, when these items are included a profit is recognised in both years, with 2025 more profitable than 2024 as a result of strong growth. In Italy, performance in 2024 was adversely impacted by both the significant increase to the settlement inflation rate for large bodily injury claims provided by the court of Milan (known as the Milan tables), and also the impact of continued inflation on claims settlement costs, particularly on business written in 2023. Strong actions taken during 2024 and 2025 have had a positive impact that is now starting to earn through in the result.

        Solo Entity Premiums, Claims and Expenses

        2025

        £m AICL AIGL

        Gross written premium	252.6	3,768.9
        Reinsurers' share	(5.3)	(327.3)
        Net written premium	247.3	3,441.6
        Gross earned premium	263.8	3,805.6
        Reinsurers' share	(6.8)	(483.7)
        Net earned premium	257.0	3,321.9
        Gross claims	(165.8)	(2,334.5)
        Reinsurers' share	0.8	222.4
        Net claims	(165.0)	(2,112.1)
        Expenses incurred	(45.8)	(678.1)
        Solvency II underwriting profit / (loss)	46.2	531.7
        Insurance revenue included in IFRS insurance service result	12.4	32.9
        Profit commission payable included in IFRS insurance service result	-	(242.8)
        Other movements	(0.6)	-
        IFRS Insurance service result	58.0	321.8

        £m	AICL	2024 AIGL
        Gross written premium	273.0	3,758.9
        Reinsurers' share	(8.4)	(464.0)
        Net written premium	264.6	3,294.9
        Gross earned premium	256.6	3,439.7
        Reinsurers' share	(8.2)	(415.1)
        Net earned premium	248.3	3,024.6
        Gross claims	(123.9)	(1,812.4)
        Reinsurers' share	(10.3)	(114.6)
        Net claims	(134.3)	(1,927.0)
        Expenses incurred	(46.9)	(653.2)
        Solvency II underwriting profit / (loss)	67.2	444.4
        Insurance revenue included in IFRS insurance service result	12.6	40.2
        Profit commission payable included in IFRS insurance service result	-	(88.2)
        Other movements	0.1	-
        IFRS Insurance service result	79.9	396.4

        As detailed in the QRTs in Appendix 2 to this report, total Non-Life and life premiums, claims for the Group's two SII solo entities AICL and AIGL are shown in the table above. Both entities report an underwriting profit, with the more material underwriting profits in AIGL reflecting its higher net share of UK motor insurance and profits generated by the motor policy upgrade products as well as profits in other UK lines of business, notably UK Household in 2025.

   3. Investment performance

      The tables below show a breakdown of investment income by type for both 2025 and 2024:

      Note that in the table below net finance expenses, which relate to the unwind of discounting on claims incurred, is presented as part of "Investment performance" in line with the IFRS 17 presentation.

      £m	2025	Group 2024	2025	AICL 2024	2025	AIGL 2024
      Investment return
      On assets classified as FVTPL	76.1	67.1	2.4	1.0	45.9	43.5
      On assets classified as FVOCI	133.6	105.6	11.3	9.2	100.9	88.6
      On assets classified as amortised cost	3.1	5.9	-	0.4	3.1	5.5
      Unrealised (loss) / gain on forward	(0.4)	(0.2)	-	-	-	-
      Share of associate profit/(loss)	-	(1.0)	-	-	-	-
      Interest income on cash and cash equivalents	4.0	5.5	0.7	0.9	7.6	5.9
      Investment fees	-	(2.0)	-	(0.1)	-	-
      Total investment and interest income	216.4	180.9	14.4	11.5	157.5	143.5
      Net insurance finance expense	(111.5)	(92.4)	(8.7)	(7.8)	(102.5)	(74.2)
      Net investment return	104.9	88.5	5.7	3.6	55.0	69.3

      Group Investment and interest income excluding net insurance finance expenses in 2025 was £216.4 million (2024: £180.9 million). The underlying rate of return for the year on the Group's cash and investments was 4.1% (2024: 4.0%).

      Admiral Group's investment strategy focuses on capital preservation and low volatility of returns relative to liabilities, and follows an asset liability matching strategy to control interest rate, inflation and currency risk. A prudent level of liquidity is held and the investment portfolio has a high-quality credit profile. In 2025, the focus remained on matching, and cashflows were invested into high-quality assets to take advantage of healthy risk-free rates, whilst being appropriately cautious on the credit outlook. The Group holds a range of government bonds, corporate bonds, alternative and private credit assets, alongside liquid holdings in cash and money market funds.

      A further aim of the strategy is to reduce the Environmental, Social, and Governance ('ESG') related risks in the portfolio, whilst continuing to achieve sustainable long-term returns. Admiral's corporate bond portfolio has an average MSCI rating of AA.

      Net investment income for the Group increased to £104.9 million, from £88.5 million, benefiting from higher investment income, which was largely offset by increased net insurance finance expenses.

      Investment income grew by 20% to £216.4 million (2024: £180.9 million), primarily as a result of increased investment balances. The annualised rate of return was slightly up at 4.1% (2024: 4.0%), driven by reinvestment at improved risk-free rates.

      Net insurance finance expense reflects the unwind of the discounting benefit recognised when claims are initially incurred. The expense has increased by 21% in 2025 (£111.5 million; 2024: £92.4 million), impacted by both the significant increase in risk-free rates from 2022 onwards, and the increasing size of claims liabilities given the continued growth in the book. A significant proportion of the insurance finance expense in 2025 relates to claims incurred during 2023 and 2024.

      Investment income in 2025 in the solo entities, excluding net insurance finance expenses, was £14.4 million (2024: £11.5 million) and £157.5 million (2024: £143.5 million) for AICL and AIGL respectively, with the same factors driving the balances in AICL and AIGL as set out above for the Group.

   4. Performance of other activities

      The table below summarises revenue and expenses from other activities and also provides a reconciliation of the information in Sections A.2, A.3 and A.4 to the profit as per the Financial Statements of the Group and solo entities.

      £m	2025	Group 2024	2025	AICL 2024	2025	AIGL 2024
      Solvency II Underwriting Result	507.8	428.5	46.2	67.2	531.7	444.4
      Net Investment Result	104.9	88.5	5.7	3.6	55.0	69.3
      Other Activities:
      Other Revenue	541.8	494.4	11.4	12.7	42.1	40.5
      Profit Commission from co-insurers	74.7	53.3	-	-	(242.8)	(88.2)
      Other Net Costs	(250.4)	(199.0)	-	-	(0.3)	9.5
      Finance Costs	(24.0)	(26.5)	-	-	-	-
      Statutory Profit Before Tax (Continued and Discontinued Operations)	954.8	839.2	63.3	83.5	385.7	475.5
      Taxation expense	(212.5)	(176.3)	(15.9)	(20.9)	(57.9)	(60.7)
      Statutory Profit After Tax (Continued and Discontinued Operations)	742.3	662.9	47.4	62.6	327.8	414.8

      The material financial statement line items other than underwriting result and investment result are discussed below:

      Other revenue

      Admiral generates other revenue from a portfolio of insurance products that complement the core motor insurance product, and also fees generated over the life of the policy. The most material contributors to other revenue continue to be:

      • Profit earned from Motor policy upgrade products underwritten by Admiral, including breakdown, car hire and personal injury covers

      • Revenue from other insurance products, not underwritten by Admiral

      • Fees such as administration and cancellation fees

      • Interest charged to customers paying for cover in instalments.

        Under IFRS 17, income from underwritten ancillaries, and an allocation of instalment income and administration fees, are included within Insurance revenue in the underwriting result. The remaining income from instalment income and fees, as well as income from other non-underwritten ancillary products is presented in other net income. However, under the Solvency II reporting above, all of this instalment income and administration fee income is presented as Other Revenue.

        Overall contribution increased to £541.8 million (2024: £494.4 million), primarily due to continued growth in customer numbers in the past year.

        In UK Motor, Other revenue was equivalent to £71 per vehicle (gross of costs) (2024: £76), with net other revenue per vehicle at £58 per vehicle, (2024: £61) the decrease being the result of lower instalment income due to lower average premiums and a reduction in the rate of interest charged for this payment method over the year.

        Profit Commission

        Co-insurer profit commission of £74.7 million is higher than in 2024 (£53.3 million).

        In 2024, profit commission was suppressed on underwriting year 2024 (and 2023) due to losses on underwriting years 2021 and 2022 being carried forward in line with contractual clauses. Over the last 12 months, the loss ratios on underwriting years 2021-23 have developed favourably, which, combined with the strong performance of the 2024 underwriting year, means that profit commission is now recognised on the 2024 year, which contributes the majority of profit commission recognised. The combined ratio is not yet low enough to recognise profit commission on underwriting years 2021-23, or 2025 where a cautious approach has been taken, as usual, given the early stage of development.

        AIGL reports net profit commission payable of £242.8 million (2024: £88.2 million), which relates to intra-group arrangements. This results from the positive development of prior underwriting year reserves. Profit commission is very sensitive to the underwriting years on which positive experience emerges and the terms and conditions of the underlying commercial agreements. These include mechanisms that carry losses forwards from unprofitable underwriting years, suppressing profit commission emergence on later profitable years.

        Other Net Costs

        Other costs primarily relate to central group costs that are not allocated to individual businesses - including net share scheme charges along with other central costs, income and expenses related to Admiral Money, the Group's personal lending business, and the other newer Group businesses such as Admiral Pioneer.

        Share scheme charges relate to the Group's two employee share schemes. The charges increased in the period driven primarily by both higher vesting assumptions and increases in bonuses tied to dividends paid in the year.

        Other central costs consist of Group-related expenses, an allocation of Group employee costs and the cost of a number of significant Group projects. Total costs increased modestly in 2025 primarily as a result of higher spend on the Group's internal model development as activity continues towards application for approval, and higher ongoing spend on central Group employee expenses and community initiatives, which outweighed the 2024 additional one-off employee bonus costs.

        Lease Commitments

        Admiral Group holds various properties under leasing arrangements that are recognised as right-of use assets and lease liabilities. A maturity analysis of lease liabilities based on contractual undiscounted cashflows is set out below:

        £m 2025 2024

        Within one year Between one to five years Over five years	8.9 28.7 46.7	7.2 25.8 51.9
        Total commitments	84.3	84.9

        There are no material leasing arrangements in place for the solo entities.

   5. Any other information

      None

2. System of Governance (Unaudited)
   1. General information on the system of governance

      Structure of the Administrative, Management or Supervisory Body

      The Board is responsible for promoting the long-term, sustainable success of the Group, creating value for shareholders, while considering the interests of all stakeholders and contributing to the wider society in which Admiral operates. The Board is the principal decision making body of the Group, providing entrepreneurial leadership, both directly and through its Committees, and delegating authority to the Executive Directors and senior management for the day-to-day running of the business.

      The solo entities AICL and AIGL have respective individual Board and Committee governance structures.

      The Group's 2025 Annual report (Corporate Governance section) provides further detail of the role of the Board and other information such as Board activity during the period.

      As set out on page 126 of the Group's 2025 Annual Report, the Board has delegated authority to a number of permanent Committees to deal with matters in accordance with written Terms of Reference. The principal Committees of the Group Board, are the Audit, Remuneration, Risk and Nomination and Governance Committees, as set out on page 129 of the Group's 2025 Annual Report.

      The Committees are constituted with written Terms of Reference that are reviewed annually to ensure that they remain appropriate and reflect any changes in good practice and governance. These Terms of Reference are available on request from the Company Secretary and can also be found on the Company's corporate website: https://www.admiralgroup.co.uk.

      Directors are fully informed of all Committee matters by the Committee Chairs reporting on the proceedings of their Committee at the subsequent Board meeting. Copies of Committee minutes are also distributed to the Board.

      All Committees are chaired by an independent Non-Executive Director and each comprises a majority of independent Non-Executive Directors. In line with the Code, all Audit Committee members are independent Non-Executive Directors.

      Committee appointments are made on the recommendation of the Nomination and Governance Committee for a term of up to three years, which may be extended for two additional three-year periods, subject to the Director's continued independence and annual reappointment to the Board by shareholders.

      Each Committees operates under written Terms of Reference, reviewed annually to ensure they remain appropriate and reflect developments in best practice and governance. These Terms of Reference are available from the Company Secretary and on the Company's website: admiralgroup.co.uk.

      The AICL and AIGL subsidiary Boards are chaired by a Non-Executive Director. There have been no material changes in the system of governance during the reporting period.

      Board Committee changes, term extensions and internal appointments addressed by the Committee during 2025

      The Board, on the recommendation of the Committee, agreed to the following proposals / changes during the year:

      • Consideration of, and recommendation for, reappointment of all Directors at 2025 AGM

      • The appointment of Fiona Muldoon as a member of the Risk Committee

      • The appointment of Paola Bonomo as a Non-Executive Director and member of the Remuneration Committee, following Justine Roberts stepping down from these roles

      • The appointment of Andy Crossley as Senior Independent Director and member of the Nomination and Governance Committee, following Justine Roberts stepping down from these roles

      • The appointment of Carlos Selonke de Souza as a Non-Executive Director.

      The Committee also considered and approved, on behalf of the Board, subsidiary board appointments, such as the appointment of Emma Powell as the CEO of Admiral Money. Further information on this particular decision is detailed on page 119 of the Group's 2025 Annual Report.

      In AICL, Glen Ward was appointed as a Director on 25th February 2025 and resigned on 8th December 2025. In AIGL, Sarah Harris (7 July 2025); William Moulder (8 August 2025) and Lisa Casemore (11 December 2025) were appointed during the year.

      Remuneration policy Key Principles of Admiral Remuneration Arrangements (applicable to all subsidiaries)

      Admiral is committed to maximising shareholder value over time in a way that also promotes effective risk management and excellent customer outcomes ensuring that there is a strong link between performance and reward. This is reflected in the Group's Remuneration Policy of paying competitive, performance-linked and shareholder-aligned total remuneration packages. These comprise basic salaries coupled with participation in performance-based share schemes to generate competitive total reward packages for superior performance.

      Fixed remuneration at Admiral comprises base salaries, benefits and pension. In line with the principles outlined above, base salaries are fixed and reflect the individual's responsibilities, role, job size and performance. Market and economic conditions and developments in governance are also considered when setting base salaries and determining the appropriate benefits and pension provisions.

      Longer-term performance-based reward is provided through the Discretionary Free Share Scheme which is outlined below. The balance between fixed and variable remuneration ensures that an element of overall reward is linked to longer-term Group Strategy and risk management as well as to shareholder and customer value.

      Two share schemes are operated within the Group, as follows:

      1. The Approved Share Incentive Plan (the SIP)

         Eligible UK based employees who have served a minimum tenure of 12 months' service at Admiral qualify for awards under the SIP based upon the performance of the Group in each half-year period. The maximum award for each year is £3,600 per employee. The awards are made with reference to the Group's performance against prior year profit before tax. Employees must remain in employment for the holding period (three years from the date of award) otherwise the shares are forfeited.

      2. The Discretionary Free Share Scheme (the DFSS)

      Employees across the Group receive DFSS awards based upon role and individual performance. Under the DFSS, individuals receive a conditional right to shares. All DFSS awards granted to employees in 2025 will vest according to the below criteria.

      For the majority of recipients, 50% of the shares awarded at the start of the three-year vesting period are guaranteed to vest subject to continued employment until the vesting date. Executive Directors have no guaranteed shares, as their whole award is subject to performance conditions. The remaining percentage are subject to the Group performance criteria as detailed below:

      Award Element Performance measure Description Weighting Performance range Vesting

      Threshold Stretch Maximum

      Non-performance/ Time-bound Financial

      Earnings per share

      Shares which do not have performance requirements.

      EPS growth over

      50.00% Shares vest at the end

      of the performance period, subject to continued employment with the Group.

      8.33% Growth of Growth of Growth of 25% for reaching

      Performance (EPS)	the performance period.		0%	30%	45%	Threshold, 75% for achieving Stretch and 100% for Maximum performance.
      Return on Equity (ROE)	ROE over the performance period.	8.33%	30%	n/a	45%	25% for reaching Threshold, 75% for achieving Stretch and 100% for Maximum performance.
      Total Shareholder Return (TSR)	TSR ranked on a relative basis vs FTSE 350 comparator group.	8.33%	Median	N/A	Top Quartile	25% for reaching Threshold and 100% for Maximum performance.

      Non-financial Customer Group

      The outcome of

      12.50% 35 48 55 25% for reaching

      Performance

      NPS

      the Group NPS, weighted by entity customer headcount.

      Threshold, 75% for achieving Stretch and 100% for Maximum performance.

      ESG Diversity The proportion of

      women in senior management roles.

      3.13% 30% 36% 40% 25% for reaching

      Threshold, 75% for achieving Stretch and 100% for Maximum performance.

      Inclusion The Group's

      3.13% >10%

      N/A At

      25% for reaching

      Inclusion scores

      below

      benchma Threshold, 40% for

      Carbon Emissions

      from the GPTW Survey, scored on a basis relative to the benchmark.

      Alignment to the SBTi 2030 and 2040 scope 1 & 2 targets for pathway to net zero, halving our GHG impact in the next 5 years.

      benchma rk

      6.25% 3,070

      tCO2e

      2,791

      tCO2e

      rk

      2,512

      tCO2e

      >6% below benchmark and 100% for Maximum performance.

      25% for reaching Threshold, 75% for achieving Stretch and 100% for Maximum performance.

      DFSS bonus

      Admiral pays a bonus (the 'DFSS bonus') that is equivalent to the actual dividends paid out to shareholders calculated on the number of unvested DFSS awards held. This is in place of, not additional to, a conventional cash bonus scheme. This approach is aligned to Admiral's culture by prioritising collective, longer-term success over short term, individual performance and maintains a direct link to shareholder dividends. Most colleagues with DFSS awards across the Group participate in this plan.

      Executive Director Annual Bonus Plan

      The Group Executive Directors participate in an Annual Bonus Plan ('ABP') in place of the DFSS bonus. This was changed in 2024, and was one of the key changes implemented with the 2024 Directors' Remuneration Policy. The Executive Directors participate in the scheme on the basis of an opportunity of 0-200% of base pay. The performance conditions for the 2025 ABP are set out in the table below:

      	Measure	Weighting	Threshold	Target	Maximum
      Financial	Profit	67.50%	£737.1m	£819.0m	£900.9m

      Measures

      (75% of total) Turnover growth 7.50% -% 2% 4%

      Non-financial Customer Outcomes 12.50% Weighted customer outcome scores from Measures across the Group entities (25% of total)

      Trust Index 12.50% 5% under benchmark

      2% under benchmark

      At benchmark

      In line with the Directors' Remuneration Policy, 40% of any award made under the ABP is converted into an equivalent value of Admiral Group shares and subject to deferral for a three year period. The remainder is paid in cash. Specific information about the structure of the ABP, measures and outcomes is is set out within the Directors' Remuneration Policy in the 2025 and the Annual Report on Remuneration in the 2025 Group Annual Report.

      Pension Provisions

      The Group operates a Defined Contribution Scheme which is available to all employees following completion of their probationary period. In the UK, the Group matches employee contributions to a maximum of 6% of base salary.

      The Remuneration Report within the Group's 2025 Annual Report contains further information about the DFSS scheme and the Remuneration Policy for Executive Directors of the Group.

      Material Related Party Transactions

      Details relating to the remuneration and shareholdings of key management personnel are set out in the Directors' Remuneration Report within the Group's 2025 Annual Report. Key management personnel are able to obtain discounted motor insurance at the same rates as all other Group staff, typically at a reduction of 15%.

      The Board considers that only the Executive Directors of Admiral Group plc are key management personnel. Aggregate compensation for the Executive Directors is disclosed in the Directors' Remuneration Report within the Group's 2025 Annual Report.

   2. Fit and proper requirements

      The Admiral Group Nomination and Governance Committee reviews and approves the Admiral Group plc Senior Managers and Certification Regime (SMCR) Policy. The Fitness and Propriety section of the policy (Appendix 3) aims to ensure that all senior individuals who represent the organisation at Group and subsidiary level (including AICL and AIGL) meet the fit and proper requirements in terms of qualifications, capability, honesty and integrity.

      As per the Policy, all prospective senior management appointments shall provide the information necessary to complete an assessment of fitness and propriety. This includes details of the candidate's knowledge, competence and experience to perform the role, and capacity to complete the role. A declaration from the senior manager responsible for the recruitment to confirm the assessment of the candidate's fitness and propriety is also carried out in line with the Policy. In addition, the candidate will be subject to interviews with appropriate members of staff, who will help complete the assessment of the candidate's fitness and propriety in relation to that role.

      In order to ensure that the individuals running the organisation are fit and proper a number of checks are undertaken such as previous employment history and professional qualification checks, information on potential conflicts of interest, credit and identify checks.

      The Admiral Group plc Senior Managers and Certification Regime (SMCR) policy is owned by the Group Head of Compliance and is reviewed annually to ensure that it is in line with all relevant regulations and remains fit for purpose. The Head of People Services is responsible for ensuring the Fit and Proper section of the policy is adhered to when appointing senior managers. In addition, all senior management are subject to requirements laid out by the UK regulators (FCA and PRA), through the Senior Managers and Certification Regime.

   3. Risk management system including the own risk and solvency assessment (ORSA)

      The Group Risk Function is responsible for updating and maintaining the Enterprise Risk Management Framework (ERMF). It is responsible for ensuring that there is an appropriate understanding and awareness of risks across Admiral Group, for managing Group-level risks, for providing overview and challenge to entity risk teams, and for communicating the risk management approach to all stakeholders. Group Risk reports on adherence to the Group Risk Appetite, adherence to triggers and limits agreed by the Group Board, and reviews the Own Risk and Solvency Assessment (ORSA) on an interim and annual basis.

      The Group has a 'three lines of defence' approach to Risk Management, the scope of which also applies to the solo entities AICL and AIGL. The 'first line of defence' describes the controls the Group has in place to deal with the day-to-day business. Controls, which are designed to appropriately mitigate risk, are managed by the business unit and overseen by the business unit Risk Management Committees which ensures compliance and reviews control breakdowns, inadequacy of process and unexpected events.

      The 'second line of defence' describes the Committees (primarily the Group Risk Committee) and functions that are in place to provide an oversight of the effective operation of the internal control framework. These committees review the management of risk in relation to the particular risk appetite of the business, as determined by the Board. The 'second line' is reinforced by the advisory and monitoring functions of Risk, Compliance and Privacy. Risk defines and prescribes risk assessment processes for the business, maintains risk registers and undertakes regular reviews of these risks and controls in conjunction with line management. Compliance provides advice on all areas of regulatory principles, rules and guidance, including reviewing any regulatory changes, and undertakes monitoring activity on key areas of regulatory risk and policy adherence.

      The 'third line of defence' describes the independent assurance provided by the Group Audit Committee and the Group Internal Audit function that reports to that Committee. Internal Audit undertakes a programme of risk-based audits covering all aspects of both the first and second lines of defence. The findings from these audits are reported to all three lines, i.e. line management, the executive and oversight committees and the Audit Committee.

      The Group's Enterprise Risk Management Framework (ERMF) is described in Section C (Risk Profile) below.

      ORSA

      Admiral Group plc's Risk Strategy is directly linked to its business plan and model. The approach is embedded in the ORSA and links to the business planning process.

      The Group Risk Function defines and prescribes the financial and operational risk assessment processes for the business; performs second line reviews, including reserving and capital modelling processes; maintains the risk registers; undertakes regular reviews of these risks in conjunction with line management; delivers the ORSA; and records any actual losses or near misses that occur as a consequence of the realisation of risk.

      The Group Chief Risk and Compliance Officer has responsibility for ensuring that managers are aware of their risk management obligations, providing them with support and advice, and ensuring that the risk management strategy is properly communicated. Reports are produced showing the most significant risks identified and the controls in place. Internal Audit uses the risk registers to plan and inform their programme of audits around the most significant risks to the Group to ensure that the prescribed controls are in place and are operating effectively.

      The Group produces an ORSA Report which includes as supporting documents/ appendices the ORSA reports produced for each of the solo insurance entities (AICL, AIGL, AECS) to support their Boards' review and challenge of the relevant components of the Group ORSA Report.

      ORSA Approval Process

      On an annual basis or following significant changes in the risk profile of the business, the Group Risk Function will produce an ORSA Report, in line with the ORSA Policy and the relevant Solvency II regulations.

      The annual and any ad hoc ORSA reports are reviewed and challenged by the Group Risk Committee prior to submission to the Group Boards for approval.

      The Board approved report is also submitted to the PRA and GFSC for information purposes, and to receive feedback on the quality and suitability of the report.

      Group Determination of Solvency Requirements

      The quantification of the capital required to support the risks faced in the operation of the Group's businesses, on both a Regulatory and Economic (ultimate) basis is included in the ORSA. The regulatory SCR is calibrated to a one-year loss, whereas the economic SCR is calibrated to both a one year and on an ultimate basis. The ORSA considers both bases in order to provide a quantification of the differences between the two viewpoints. In addition, analyses of the key drivers of economic (ultimate) capital needs and regulatory capital requirements are also considered.

      Admiral has been in the process of developing an internal model and has recently submitted an application for approval from the regulators to calculate its regulatory SCR using a Partial Internal Model (PIM) for Group, AICL and AIGL. Whilst Admiral completes awaits the outcome of its application, the Group's regulatory capital requirement is based on the Solvency II standard formula with a Capital Add-On to reflect recognised limitations in the standard formula, (predominantly in respect of profit commission arrangements within co- and reinsurance contracts and risks arising from Periodic Payment Order (PPOs) claims).

      Refer to Section C for a review of the Group's basis for calculating Regulatory capital requirements.

   4. Internal control system

      The Group's control environment is determined by the Admiral Group Board of Directors, supported by a number of committees who have set the tone of the organisation through the Admiral Group culture, principles, business plan and risk appetite.

      The Group Controls Requirement Framework (hereafter 'the Framework') was launched in January 2025, streamlining and replacing the prior Group minimum control standards and policy requirements into a single holistic structure. The project has been ongoing throughout 2025, maturing the risk management and internal control frameworks within the business, and

      ensuring readiness for reporting in line with Provision 29 of the UK Corporate Governance Code (2024) at the conclusion of the 2026 financial year.

      The Framework documents the operational processes in place that allows Admiral to manage its key risks (identified via the Group's risk universe) via the application of targeted, effective and efficient internal controls. The Framework is aligned to Admiral's strategic objectives, and is applicable to all Group entities, including AICL and AIGL.

      In broad terms, the Framework achieves this by systematically reviewing and confirming that the Group Policy suite is aligned to Admiral Group's risks, including its principal risks and uncertainties and other key risks, with all Group Policies having a minimum refresh cycle (normally annual), to ensure they remain current and aligned to the Group's needs, with the draft/refreshed Group Policy requiring final approval from an Admiral Group Board forum.

      Each Group Policy includes requirements, which set the parameters for key action/decision making; and each requirement is cross referenced to one or more supporting internal controls. Internal controls help entities evidence adherence to policy requirements, and thereby to the mitigation of the underlying risks; and are subject to a mandated and continuous cycle of control attestation; control testing; and independent quality assurance.

      The design, implementation and operating effectiveness of the Framework and its associated activities is routinely monitored, analysed and reported against through the 'three lines of defence' mechanism adopted by the Group.

      Line 1 (operational functions) are responsible for day-to-day monitoring of the risks facing their operation, whether this be through call monitoring, file reviews or audit reviews, as well as responsible for designing and implementing control activities within their area based on the risks identified. The controls are documented within the policies and risk registers, for reference and to maintain an audit trail. Results of monitoring activities are provided to operation managers, and subsequently reported on through the Admiral Group Governance structure.

      Line 2 (Risk and Compliance, Actuarial functions) are responsible for the oversight of the Line 1 monitoring. This is done through:

      • Risk reviews - business unit risk and controls discussed at Risk Management Committees (RMCs) with material risks and Key Reporting Indicators (KRIs) presented to Group Risk Committee in the Consolidated Risk Report

      • Compliance Advice and Compliance Monitoring Reviews presented to Group Risk Committee

      • Actuarial and validation reviews

      Line 3 (Internal Audit) is responsible for conducting an objective and independent appraisal of all the Group's activities, financial and otherwise, through a risk-based plan covering aspects of both the first and second lines of defence, approved annually by the Group Audit Committee. The findings from these audits are reported to the three lines of defence, i.e., management, the executive and oversight committees, and the GAC.

      In addition to the three lines of defence, the Group also monitors the internal control activities and framework through the use of external auditors and consultancies. External reviewers are responsible for the oversight of specific processes within the Group, depending on the scope of the review they are required to undertake.

      Compliance Function

      The Group Compliance Function sets the strategic direction for the business on Compliance matters and provides oversight and assurance to the Board, over the effectiveness of the second line Compliance Teams in delivering its oversight of the delivery of the first lines regulatory responsibilities and adherence to the rules and guidelines set by the FCA and PRA, along with other regulatory bodies as applicable.

      The Group Compliance Function is responsible for the design, implementation, monitoring, and review of the Group's Conduct Risk Management Framework as well as the identification and communication of any new requirements arising from changes in regulation. The Function, alongside Group Risk, oversees the Line 1 processes for identifying, owning and ongoing management of Conduct Risk, including the implementation of new regulatory requirements.

      The Group Head of Compliance provides regular reports to the Group Risk Committee who monitor Conduct risk in relation to the Conduct Risk appetite approved by the Group Board. Regular Compliance reporting is also provided to the subsidiary boards including the EUI, AIGL, AICL and AECS Boards.

      The Group Compliance Function works with the Group Risk Function to provide advice and resolution to risk events as they arise. Management of customer outcome risk events is completed in line with the Group Risk Management Policy.

   5. Internal audit function

      The Group Internal Audit function is a crucial component of organisational governance, tasked with providing independent, objective assurance designed to add value and improve Admiral Group operations. Its primary responsibility is to support the Board, through the Group Audit Committee, in its ongoing assessment of the suitability of the risk management, governance, and internal control processes across all operations.

      In undertaking this, the Group Internal Audit function aims to links its activities to the strategic aims of the organisation. By aligning audit planning and execution with the organisation's strategic objectives, Group Internal Audit provides assurance that key risks to achieving those objectives are identified and managed effectively. This alignment enables the Board to have confidence that the organisation's strategic goals are being pursued with a robust framework of risk management and control. Internal Audit contributes to strategic aims by:

      • Assessing the adequacy and effectiveness of risk management processes.

      • Evaluating how well the organisation's controls are aligned with strategic objectives.

      • Providing insights and recommendations that support strategic decision-making.

        Annually the Group Internal Audit function carries out a planning exercise to determine the coverage of work to be carried out. This is undertaken via an independent Audit Universe, with consideration to the Group's strategic aims, risk landscape and regulatory environment as well as wider stakeholder engagement. Whilst the plan is annual, there is a flexible and dynamic approach which is adaptable to the changing business circumstances.

        The annual Group Audit Plan is a consolidation of all activities performed across all Group activities, presented to the Group Audit Committee for formal approval. Any changes to the Plan are subsequently approved by the same forum during the course of the year.

        The Group Head of Internal Audit provides a regular update to the Group Audit Committee on the delivery of the annual Plan, inclusive of the results of each assignment, key insights and ongoing oversight of outstanding recommendations in line with an approved methodology. Annually, a consolidated report is presented that gives an annual opinion on the effectiveness of the risk management, governance and internal control activity based on activities of the prior year Plan, highlighting any area of specific concern, as well as emerging trends and themes.

        Regular internal audit reporting is also provided to the subsidiary boards.

        Independence and Objectivity of the Internal Audit Function

        In line with the Group Internal Audit Policy, the Internal Audit department and all of its employees must be functionally and organisationally independent of the business processes, events and transactions of the company. The Internal Audit department will carry out its assignments with impartiality and is free to express its opinions in their reports. Amongst many matters, the Internal Audit department must have direct access to the Board of Directors, Group Audit Committee and the Chief Executive Officer and be able to report directly to these levels when they deem this necessary. Such independent structure should enable the internal auditor to render impartial and unbiased judgement, essential to the proper conduct of their work.

        Internal Audit activity must be free from interference in determining the scope of internal auditing, performing work and communicating results.

        Unless permission is granted by the Group Audit Committee Chair, an Internal Auditor will not perform an audit review in an area where they had a consultancy / operational role in the previous twelve months.

        Where practical, areas under review shall be rotated amongst the staff in Internal Audit to avoid any potential conflict of interest.

   6. Actuarial function

      The Actuarial Function has a number of responsibilities in the area of technical provisions and also in providing an opinion on the adequacy of re-insurance and underwriting.

      Solvency II requirements state that the Actuarial Function shall be carried out by persons who have knowledge of actuarial and financial mathematics, commensurate with the nature, scale and complexity of the risks inherent in the business, and who are able to demonstrate their relevant experience with applicable professional and other standards. The Actuarial Function should be free from influences that may compromise its ability to undertake its duties in an objective, fair and independent manner.

      The Actuarial Function produces a written report ("The Actuarial Function Report") which is submitted to the Group Board, at least annually, documenting all tasks undertaken, identifying deficiencies and making recommendations to remedy these deficiencies. The report is designed to include the calculation of technical provisions, an opinion on overall underwriting policy and an opinion on the adequacy of reinsurance arrangements. Similarly, entity specific Actuarial Function Reports are provided to each of the subsidiary boards including AIGL, AICL and AECS Boards.

      The responsibilities that fall under the remit of the Actuarial Function are segregated from other business activities to allow independent review and challenge, allowing the Actuarial Function to provide an independent opinion of the areas of Technical Provisions, Reinsurance and Underwriting. The validation, review and challenge is carried out by the second line Group Risk Function which enables clearer separation of activities and strengthens the independence. The Actuarial Function is comprised of suitably qualified individuals who have the skills and knowledge to make the decisions without the influence of others.

   7. Outsourcing

      The Group's Procurement and Outsourcing Policy ensures that any third party arrangement entered into by the Group does not lead to impairment of either the Group's systems of governance and internal control, or the relevant supervisory authority in monitoring compliance risks, does not unduly increase the operational risk and does not undermine continuous and satisfactory service to customers.

      The Group outsources a number of critical and important functions across all businesses, to various third parties. The Group Procurement and Outsourcing Policy provides a clear guide to identify and manage outsourced relationships to a minimum standard based on the strategic risk the supplier poses to the Group.

      Material intra-group outsourcing arrangements include the provision of insurance services by the Group's insurance intermediaries to the Group's regulated insurance entities. This includes EUI Limited in the UK, and Admiral Intermediary Services S.A.U in Spain. In addition, the Group has shared IT development centres in India and Spain that provide services to both the Group's insurers and comparison websites. Intra-group outsourcing arrangements fall within the scope of the Group's outsourcing policy in a consistent manner to outsourcing arrangements external to the Group.

   8. Any other information

      Assessment of the adequacy of the system of governance

      The Board is ultimately responsible for the Group's system of governance, including the system of risk management and internal control.

      As noted on Page 116 of the Group's 2025 Annual Report, the Board confirms the Group's compliance with the principles and provisions of the UK Corporate Governance Code 2024 (the code) which is applicable to the year under review.

      The code is considered to represent best practice for UK listed companies. This covers both the Group as a whole, and also the solo entities AIGL and AICL.

3. Risk Profile (Unaudited) Risk Assessment and Risk Management

   The Admiral Group Board is responsible for determining risk strategy and risk appetite across the Group, and for the Group's system of risk management and internal control. The Board has delegated the development, implementation and maintenance of the Group's risk management framework to the Group Risk Committee, which reports its activities to both the Board and also to the Group Audit Committee, for the purposes of reviewing and reporting on the overall effectiveness of this system.

   The Group's 2025 Annual Report contains detailed information on the activities of the Group Risk Committee during the year along with the Committee's duties and responsibilities and the Group's Risk Management and Internal Control statement.

   Risk is an essential part of the Group's business operations and informed risk taking is important in achieving the Group's immediate and future business objectives, whilst protecting its customers in the longer term. Risk is a core consideration when setting strategy, formulating business plans, managing performance and rewarding management success.

   The ERMF at Admiral Group has been designed, implemented and embedded to provide the Board with oversight of the risks, as well as oversight of how those risks are managed across the Group. The framework operates to provide first, second and third lines of defence for all risks captured in Admiral's risk profile and risk universe. The framework is also used to help the wider business understand the various elements of risk management.

   1. The Key Risks to the business are identified based on the Level 1 Risks from the Admiral Risk Universe, with a further split to highlight other key risks on the grounds of materiality. All Key Risks are assigned an owner at a Group and Business Unit level.

   2. Risk Classifications are assigned to each key risk on a materiality basis.

   3. Risk Drivers are identified for each key risk.

   4. Board Risk Appetite Statements are then assigned to define the approach to managing each of the risk drivers within appetite for the key risk category.

   5. Key Risk Indicators (KRIs) are monitored for each risk driver to act as early and ongoing warning indicators for the Board and Management Risk Appetite Statements.

   6. Triggers and Limits are defined to reflect early and ongoing warning indicators such that a breach of a trigger or limit is not defined as a breach of the Board's risk appetite.

   The Group Risk Appetite is owned and approved by the Admiral Group Board. The responsibility for the Group Risk Appetite is delegated to the Group Risk Committee which reviews all components prior to Board approval and monitors the performance of the business against the approved Group Risk Appetite through the Consolidated Risk Report (CRR) and other risk reporting.

   Material Risks

   The material, or key risks to the Group are listed below, and may be mapped to the main categories of risk within the Solvency II Solvency Capital Requirement (SCR):

   Key Risk Risk Overview

   Insurance, or Underwriting Risk

   Uncertainty over the occurrence, amount or timing of claims arising on insurance contracts issued by the Group.

   Market Risk Fluctuations in the value of market prices of the Group's investment assets and liabilities, and in the income and expenses generated from these assets and liabilities. Counterparty, or Credit The risk that counterparties (primarily either reinsurers or banks or other investment Risk counterparties) default on obligations. Liquidity Risk The risk that the Group does not have sufficient financial resources to meet its liabilities when they fall due or can secure them only at excessive cost. Operational Risk Risks arising through operational processes and procedures. These include risks related to people, processes, IT systems, information security, business continuity and customer outcomes. Group Risk Risks, other than those captured within categories above arising across the Group's operations. These may relate to the Group's non insurance businesses (such as Admiral Money) or to other risks relating to the insurance businesses (such as loss of additional revenues from customers).

   Each of these risk categories is discussed in further detail in sections C1 - C7 below, along with details of risk mitigating actions taken by the Group Board in respect of each risk. The Annual Report (pages 97 - 104) also provides further information on the Group's 'Principal Risks and Uncertainties', their impacts and the associated mitigating actions.

   The Group's Solvency II SCR reflects the profile of these material risks. The chart below evidences that non-life insurance, or underwriting risk is the Group's material risk concentration, comprising 64% of the YE 2025 SCR. There has not been a material change to this risk profile over the course of 2025 and there is not expected to be a material change during 2026.

   2025 Group Solvency Capital Requirement - by risk type

   £1,000m

   102.2m 929.5m

   47.1m

   2.1m

   140.9m

   212.0m

   24.3m

   (45.1)m

   597.0m

   (151.0)m

   £750m

   £500m

   £250m

   Non-Life Underwriting Risk

   Market Risk

   Counterparty Risk

   Life Underwriting Risk

   Diversification

   Operational Risk

   LACDT

   Capital Add-On

   SCR for Other Financial Sectors

   SCR

   £0m

   AICL

   £150m

   101.3m

   (11.9)m

   90.5m

   (25.1)m

   £125m

   14.3m 3.7m 0.3m

   7.9m

   £100m

   £75m

   £50m

   £25m

   Non-Life Underwriting Risk

   Market Risk

   Counterparty Risk

   Life Underwriting Risk

   Diversification

   Operational Risk

   LACDT

   SCR

   £0m

   AIGL

   £800m

   156.7m

   16.6m

   1.8m

   114.1m

   595.9m

   (22.0)m

   431.9m

   (103.2)m

   £600m

   £400m

   £200m

   Non-Life Underwriting Risk

   Market Risk

   Counterparty Risk

   Life Underwriting Risk

   Diversification

   Operational Risk

   LACDT

   SCR

   £0m

   1. Underwriting risk

      The Group's underwriting risk, and that of AICL and AIGL, consists of Non-Life and Life components. As noted above, the material concentration of risk is within Non-Life underwriting risk, given the Group's focus on general insurance lines of business. Life underwriting risk arises through the settlement of claims on a Periodic Payment Order (PPO) basis, where annual index-linked settlements to claimants exposes the Group to life risks such as the claimant's life expectancy (longevity) and inflation.

      Non-Life Underwriting Risks

      Non-Life underwriting risk consists of the following components of risk:

      • Non-Life premium risk

      • Non-Life reserve risk

      • Lapse risk

      • Catastrophe risk

        The valuation of Non-Life underwriting risk is driven by the premium and reserve risk component, with smaller contributions made by catastrophe risk and lapse risk.

        The majority of Non-Life underwriting risk is accepted by the Group's Solvency II regulated subsidiaries AICL, AIGL and AECS. As a result, there is little difference between the sum of the components of Non-Life insurance risk for AICL, AIGL and AECS and the Group valuation.

        Non-life premium risk is the risk that the Group incurs losses on risks arising in the twelve months after the valuation date. Premium risk consists of a lower proportion of bodily injury exposure, and therefore has a higher proportion of property damage in future claims experience which increases the diversification between claim types compared to reserve risk. This is due to premium risk considering the future occurrence and severity of claims, rather than the development of existing claims, of which property damage claims generally settle quickly.

        Non-Life Reserve risk is driven by adverse development in the valuation of the liabilities which is mainly related to longer tailed bodily injury claims, particularly from the Group's UK motor business, which have greater uncertainty associated with the ultimate cost of claims than, for example, property damage claims (across both Motor and Household businesses).

        These claims can develop over a number of years so the reserve risk figure relates to reserves held over several underwriting years.

        Catastrophe risk is the risk that the Group incurs losses due to the occurrence of extreme weather events (mainly flood and windstorm). The main catastrophe risk exposure that the Group and AIGL faces is in respect of the UK Household portfolio. A large catastrophe excess of loss programme is purchased to provide mitigation against this risk.

        The Group's retention of risk across underwriting years for the core UK motor business varies depending on the coinsurance and quota share reinsurance contracts in place for each year. The Group has historically used reinsurance (in the form of both co-insurance and quota share reinsurance, as well as excess of loss reinsurance) as a risk mitigation tool across all lines of business - refer to the risk mitigation section below for further detail. In addition, the Group's Annual Report contains further information about the co-insurance and reinsurance arrangements in place for businesses across the Group (page 53).

        Life Underwriting Risks

        As noted above, the Group, AICL and AIGL are exposed to life underwriting risks in respect of claims that have settled by way of a PPO. The risks relevant to the Group within the standard formula calculation of life risk are longevity risk and inflation. In addition, the Group's CAO captures inflation risk (refer to section C6).

        The Group has a relatively low number of settled PPO claims, and therefore, life underwriting risk does not reflect a significant contribution of risk. In addition to this, diversification against the significant Non-Life insurance risks further reduces the element of the SCR attributable to life underwriting risk.

        Risk Mitigation

        Underwriting risk is the Group's (and AICL and AIGL's) material risk and as noted above, a key part of the Group's risk mitigation strategy with respect to underwriting risk is the use of co-insurance and reinsurance (both proportional quota share reinsurance and non-proportional excess of loss reinsurance). In the core UK motor business, both co-insurance and quota share reinsurance contracts are utilised to mitigate risk.

        In respect to proportional risk sharing agreements, the Group's net retained share of business after proportional coinsurance and reinsurance arrangements, for material businesses in the 2025 underwriting year, and at 31 December 2025 in relation to 2025, 2024, 2023 and 2022 underwriting years, is as follows:

        Net Retained

        Net Retained

        Net Retained

        Net Retained

        Share Business 2025 U	Share W Year 2024 U		Share W Year 2023 U	Share W 2022 UW
        UK Car**	22%	22%	24%	24%
        UK Household	30%	30%	30%	30%
        UK Van**	25%	25%	25%	100%
        UK Other*	100%	100%	100%	100%
        Italian Motor	60%	35%	35%	35%
        Spanish Motor	30%	30%	30%	30%
        French Motor	30%	30%	30%	30%
        US Motor	100%	60%	40%	40%
        European home and pet	100%	100%	100%	100%

        * UK Other includes pet, travel and commercial insurance

        ** Reflects net retained share including commutations. Original net retained share of UK car for UWYs 2023 and 2022 was 22%, and UK van for UWY 2022 was 25%

        In line with the standard formula approach, underwriting risk capital requirements are calculated net of co-insurance and reinsurance. However, for UK Motor contracts, both co-insurance and proportional quota share reinsurance contracts allow Admiral to participate in the profitability of those portions of the book through profit commission arrangements. The Actuarial Function monitors the effectiveness of the Group's co-insurance and re-insurance arrangements on an ongoing basis, reporting findings to the Group Board at least annually. This process includes assessment of a range of areas such as reinsurance development, reinsurance performance and compliance with internal policies. The additional risks that the Group is exposed to through these contracts are captured in the Group's CAO - refer to section C6 below.

   2. Market risk

Admiral Group's investment strategy, which is also applied to subsidiaries AICL and AIGL, is focused on capital preservation and low volatility of returns relative to the valuation of liabilities. It is an asset liability matching strategy to control interest rate and currency risk. There is also a prudent level of liquidity and the investment portfolio has a high-quality credit profile.

In 2025 there were no material changes to the investment strategy. The focus was on asset liability matching and investing flows into high quality assets to take advantage of higher interest rates, whilst being cautious on the credit outlook. The Group, AICL and AIGL hold a range of government bonds, corporate bonds, alternative and private credit assets, alongside liquid holdings in cash and money market funds.

Further information on the IFRS classification of the Group's cash and investments is included in the Group's 2025 Annual Report.

Prudent Person Principle

Solvency II requires use of the Prudent Person Principle for managing investments.

The Prudent Person Principle seeks to ensure that the insurer understands and is capable of managing its investment risks. Specifically, insurers must be able to demonstrate that they can properly identify measure, monitor, manage, control and report on their investment risks and not place reliance upon information provided by third parties.

Admiral's risk management and strategic decision-making process in respect of asset investment is centred on the Group's Investment Committee. The Investment Committee is a Management Committee that includes Non-Executive Director representation. The governance process for material asset investment decisions can be summarised as follows: