Annual Financial Report

About this update from Admiral Group Plc

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tax","length":23,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:top;","val":[{"type":"text","content":"£839.2m","length":7,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:top;","val":[{"type":"text","content":"£442.8m","length":7,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":" +90% ","length":4,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:bottom;","val":[{"type":"text","content":"Earnings per share","length":18,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:top;","val":[{"type":"text","content":"216.6p","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:top;","val":[{"type":"text","content":"111.2p","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":" +95% ","length":4,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:bottom;","val":[{"type":"text","content":"Dividend per share","length":18,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:top;","val":[{"type":"text","content":"192.0p","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:top;","val":[{"type":"text","content":"103.0p","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":" +86% ","length":4,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:middle;","val":[{"type":"text","content":"Return on equity 1 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turnover¹","length":15,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":"£6.15bn","length":7,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":"£4.81bn","length":7,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":" +28% ","length":4,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:bottom;","val":[{"type":"text","content":"Insurance 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customers¹","length":16,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":"11.10m","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":"9.73m","length":5,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":" +14% ","length":4,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:bottom;","val":[{"type":"text","content":"UK insurance 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balances","length":33,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":"£1.17bn","length":7,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":"£0.96bn","length":7,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":" +23% ","length":4,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" ","length":6,"tagName":"p","attribs":{}}]}]},{"val":[{"style":"width:361px;vertical-align:bottom;","val":[{"type":"text","content":"Solvency ratio (post-dividend)¹","length":31,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":"+203%","length":5,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":"+200%","length":5,"tagName":"p","attribs":{}}]},{"style":"width:100px;text-align:right;vertical-align:middle;vertical-align:middle;","val":[{"type":"text","content":" +3pts ","length":5,"tagName":"p","attribs":{}}]}]}],"length":573},{"type":"text","content":" 1 Alternative Performance Measures – refer to the end of the report for definition and explanation. ","length":99,"tagName":"p"},{"type":"text","content":" Over 13,000 employees will each receive free share awards worth up to £3,600 under the employee share schemes based on the full year 2024 results.","length":148,"tagName":"p"},{"type":"text","content":" Comment from Milena Mondini de Focatiis, Group Chief Executive Officer: ","length":71,"tagName":"p"},{"type":"text","content":"“2024 was a remarkable year. We delivered an excellent result with a 28 per cent increase in turnover and 90 per cent increase in profit as we welcomed an additional 1.4 million customers to the Group.","length":201,"tagName":"p"},{"type":"text","content":"“To remain one of the most competitive insurers for the largest number of people is a priority for us. We have emerged from several rather challenging years so when we saw conditions improve we were quick to respond. We were one of the first to reduce prices in response to easing inflation and cut rates the day after the favourable Ogden rate change announcement.","length":365,"tagName":"p"},{"type":"text","content":"“The main driver of our exceptional performance was our UK Motor business. However, it is great to see UK Household, Admiral Money, and our French and US Motor businesses all report a double-digit profit.","length":204,"tagName":"p"},{"type":"text","content":"“We are excited to be building on the synergies within our businesses and products. We recognise that there is more that we can do to meet even more of the needs of our growing customer base. We continue to focus on being a great choice for customers by leveraging our expertise in pricing, claims management and underwriting, and making continuous improvements in our service.","length":377,"tagName":"p"},{"type":"text","content":"“I was pleased to see our MSCI ESG score upgraded to AAA and to have our science-based targets officially approved. We have published our Net Zero Transition Plan and, as one of the leading insurers of electric vehicles in the UK, we are supporting the transition to greener vehicles.","length":284,"tagName":"p"},{"type":"text","content":"“Thanks to our incredible colleagues we have achieved so much this year and rewarded them with an additional bonus for their commitment.","length":136,"tagName":"p"},{"type":"readMore"},{"type":"text","content":"“As we enter into 2025, the market is softening, and the outlook is uncertain. Our priority is to stay efficient and agile so that we can adapt as needed and deliver long-term growth by building on our strong foundations and talented team.”","length":240,"tagName":"p"},{"type":"text","content":" Comment from Mike Rogers, Admiral Group Chair: ","length":46,"tagName":"p"},{"type":"text","content":"“Admiral has had an excellent year, demonstrating, once again, how its unwavering focus on doing the right thing for customers can deliver growth and long-term value to all its stakeholders.","length":190,"tagName":"p"},{"type":"text","content":"“Admiral is now helping even more people to look after their future with its wider range of products. The Group’s commitment to continuous evolution and innovation means that it is using new technologies to better anticipate and meet customers’ needs and achieve greater efficiencies in how it operates.","length":303,"tagName":"p"},{"type":"text","content":"“Although inflation has eased, political, regulatory and economic uncertainty remains. Admiral’s prudent and disciplined approach will be key to ensuring that the Group continues to achieve long-term sustainable growth and can be there for its customers, colleagues and communities when they need it the most.”","length":310,"tagName":"p"},{"type":"text","content":" Final Dividend ","length":14,"tagName":"p"},{"type":"text","content":"The Board has proposed a dividend of 121.0 pence per share (2023: 52.0 pence per share) representing a normal dividend (65% of post-tax profits) of 91.4 pence per share and a special dividend of 29.6 pence per share. The final dividend will be paid on 13 June 2025. The ex-dividend date is 15 May 2025, and the record date is 16 May 2025.","length":353,"tagName":"p"},{"type":"text","content":" Management presentation ","length":23,"tagName":"p"},{"type":"text","content":"Analysts and investors will be able to access the Admiral Group management presentation which commences at 10.00 GMT on Thursday 6 March 2025 by registering at the following link to attend the presentation in person, or access the presentation live via webcast or conference call: https://admiralgroup.co.uk/events/event-details/2024-full-year-results. A copy of the presentation slides will be available at the following link: Results, reports and presentations | Admiral Group Plc (www.admiralgroup.co.uk)","length":512,"tagName":"p"},{"type":"text","content":" Investors and Analysts: Admiral Group plc Diane Michelberger                                [email protected]","length":289,"tagName":"p"},{"type":"text","content":" Media: Admiral Group plc      Addy Frederick                                [email protected] +44 (0) 7500 171 810","length":305,"tagName":"p"},{"type":"text","content":" Media: FTI Consulting    Edward Berry                                        +44 (0) 7703 330 199 Tom Blackwell                                        +44 (0) 7747 113 919","length":581,"tagName":"p"},{"type":"text","content":" Chair Statement ","length":15,"tagName":"p"},{"type":"text","content":" Admiral Group performed very strongly in 2024 despite an unfavourable macroeconomic backdrop. The Group has achieved significant customer growth, while increasing customer satisfaction, and delivered an excellent UK Motor performance, supported by changes to the Ogden rate, with strong results in many other business lines. This has translated into profit before tax of £839.2 million and a proposed final dividend of 121.0 pence per share, making a total of 192.0 pence per share for the financial year. ","length":515,"tagName":"p"},{"type":"text","content":"The Group’s impressive customer growth is a testament to its core value of doing what is right for customers. In the UK, due to better cycle management and in response to improved market conditions, Admiral reduced prices earlier than the market in early 2024.","length":265,"tagName":"p"},{"type":"text","content":" Delivering growth, digitisation and sustainability ","length":50,"tagName":"p"},{"type":"text","content":"Defending and extending the competitive advantages of the UK motor business remains our number one priority, alongside our strategy of developing other franchises with the potential to drive future profitable growth. We have seen positive results across many of our newer franchises, with double-digit profit in the UK’s Household and Money businesses and our French business.","length":381,"tagName":"p"},{"type":"text","content":"The Group has made significant strides in enhancing its digital capabilities and unlocking the potential of new technologies to achieve a superior customer experience and greater productivity.","length":207,"tagName":"p"},{"type":"text","content":"Admiral continues to navigate a challenging regulatory landscape to ensure its resilience and sustainability in the long term. As one of the UK’s largest motor insurers, the business has been engaging with members of the motor insurance taskforce to identify solutions to tackle the current high costs of insurance.","length":315,"tagName":"p"},{"type":"text","content":"Admiral continues to support customers to adopt greener behaviours and is one of the leading UK electric vehicle insurers. The publication of Admiral’s Net Zero Transition Plan and the SBTi’s approval of its science-based targets demonstrates our commitment to responsible and sustainable business practices.","length":308,"tagName":"p"},{"type":"text","content":" Powered by our people ","length":21,"tagName":"p"},{"type":"text","content":"Admiral colleagues’ expertise and dedication to supporting customers, colleagues and local communities is remarkable, so I was pleased that Admiral was, again, named one of the world’s best workplaces. Similarly, it was an honour to be at the London Stock Exchange to celebrate 20 years of Admiral being a listed business and delivering for customers and shareholders with colleagues who are custodians of the business’ incredible culture.","length":449,"tagName":"p"},{"type":"text","content":"I was sorry to say goodbye to Cristina Nestares who had successfully led the UK Insurance business since 2016. We all wish her the very best for the future. I’m pleased that, in line with the Group’s strong track record on succession planning, Alistair Hargreaves has been appointed UK Insurance CEO.","length":300,"tagName":"p"},{"type":"text","content":"We conducted an evaluation on the performance of the Board and its Committees. This process confirmed that these were operating effectively, that the business is managed for the long-term benefit of all stakeholders and provided a clear focus on areas for improvement for the forthcoming year.","length":298,"tagName":"p"},{"type":"text","content":"On behalf of the Board, I would like to thank Admiral colleagues for their ongoing commitment, and the management team for their excellent leadership and performance.","length":166,"tagName":"p"},{"type":"text","content":"While the external landscape remains uncertain, I believe that the Group’s competitive advantages, disciplined approach, and customer-first mindset will drive continued growth and shareholder value.","length":203,"tagName":"p"},{"type":"text","content":" Mike Rogers ","length":11,"tagName":"p"},{"type":"text","content":" Group Chair ","length":11,"tagName":"p"},{"type":"text","content":" 5 March 2025 ","length":17,"tagName":"p"},{"type":"text","content":" Group Chief Executive Officer’s Review ","length":38,"tagName":"p"},{"type":"text","content":" Overall, 2024 was a remarkable year for Admiral. It was not only a year of delivering excellent financial results but also one of continuous improvements in serving our customers and making solid progress on our strategy. ","length":221,"tagName":"p"},{"type":"text","content":"Despite persisting economic, political, and regulatory uncertainty, motor insurance market conditions improved and this – combined with our historical discipline and agility across the insurance market cycle allowed us to achieve a great many successes. We have welcomed 1.4 million new customers, improved customer satisfaction, added £1.3 billion in turnover, and increased profits by 90 per cent.","length":404,"tagName":"p"},{"type":"text","content":"Our core business, UK Insurance, was the main driver of this success. It delivered just under £1 billion in profit, supported by the impact of the recent favourable Ogden Rate change, and strong growth across our other products. Our acquisition of the renewal rights for More Than completed in the first half of the year. The integration is progressing well with 7 months of renewals at the end of January and retention is in line with expectations.","length":474,"tagName":"p"},{"type":"text","content":"To remain one of the most competitive insurers for the largest number of people is a priority for us so, when we saw conditions improve, we were quick to reflect this in our pricing. We led on reducing rates, doing it earlier than most at the start of the year, as we saw inflation easing. We also cut rates the day after the favourable Ogden rate change announcement.","length":373,"tagName":"p"},{"type":"text","content":"Beyond UK motor, we have delivered double-digit profits within our UK Household, French and US Motor businesses and Admiral Money. We now serve over 11 million customers globally, with almost half of customer growth coming from other business lines across the Group.","length":276,"tagName":"p"},{"type":"text","content":"We are proud of the pleasing turnaround that the US team has achieved. As previously mentioned, we’re assessing the strategic options for our US business. We have made good progress and are in exclusive talks with a potential acquirer.","length":235,"tagName":"p"},{"type":"text","content":"Across our European franchises, we now insure more than half a million French customers and have seen an improved performance in our Spanish business. In Italy, the team is focused on turning the business around following a disappointing financial performance in a tough market in 2024.","length":296,"tagName":"p"},{"type":"text","content":"We are conscious that there is more to do to unlock the potential of these businesses. We have ambitious plans to build on our UK customer base, to further improve the customer experience and harness the advantage of automation and AI to achieve even greater efficiency.","length":275,"tagName":"p"},{"type":"text","content":"Taking a step back, our story has been one of continuous growth and, to celebrate 20 years as a listed company, colleagues joined Mike Rogers and I at the London Stock Exchange to close the market. This anniversary was a time for reflection on where the business has come from and, of course, where the business is going (and to celebrate Geraint who has been Group CFO for ten years – congratulations Mr Jones!).","length":428,"tagName":"p"},{"type":"text","content":"Our success has been underpinned by our pricing, underwriting and claims management expertise, all united by a culture that is truly unique. We put our customers and people first, and are data-driven, agile and entrepreneurial.","length":232,"tagName":"p"},{"type":"text","content":"We want to have a positive impact on society. We are one of the leading electric vehicle insurers and are proud of our commitment to improve road safety. In the UK, our Words to Live By campaign video was shown in cinemas nationwide.","length":243,"tagName":"p"},{"type":"text","content":"I am proud of how our colleagues have supported customers impacted by flooding and we are working cross-industry to ensure that homes are more flood resistant or resilient. Our colleagues want to play a positive role in the communities in which we live and work, and the number of volunteering hours more than doubled in 2024.","length":336,"tagName":"p"},{"type":"text","content":"We have published our Net Zero Transition Plan and are working hard to meet our sustainability goals. I was pleased to see our science-based targets officially approved and our MSCI ESG score upgraded to AAA.","length":218,"tagName":"p"},{"type":"text","content":"We know that if our people like what they do, they will do it better, and it is brilliant to be recognised, once again, as one of the World’s Best Workplaces. We focus on being an inclusive employer and maintaining our unique culture to attract and retain the talent we need to execute our strategy.","length":324,"tagName":"p"},{"type":"text","content":"I am so proud of everything that we have been able to achieve this year thanks to our incredible colleagues. Ever since we floated, colleagues have been given a stake in the business so that they can benefit from their hard work and customer focus. This year, we have given colleagues an additional bonus to reward their commitment.","length":337,"tagName":"p"},{"type":"text","content":"In October, we announced that Cristina Nestares was stepping down as CEO of our UK Insurance business to spend more time in her native Spain. We will miss Cristina’s passion and customer focus, which were key to building on the business’ position as a leading insurer. I was pleased to appoint Alistair Hargreaves as CEO. Alistair has significant leadership experience and extensive knowledge of our customers, colleagues, products and strategy, and I look forward to working even more closely with him as we continue to deliver for our growing customer base.","length":589,"tagName":"p"},{"type":"text","content":"We are emerging from four years of challenge from the pandemic and cost-of-living crisis to inflation spikes and regulatory changes. Although, no doubt, further challenges lie ahead, I am optimistic about the opportunities too. Our priority will be to stay agile, lean, and efficient so that we can adapt as needed, leveraging our strong foundations and talented team to deliver long-term growth.","length":416,"tagName":"p"},{"type":"text","content":" Milena Mondini de Focatiis ","length":26,"tagName":"p"},{"type":"text","content":" Group Chief Executive Officer ","length":29,"tagName":"p"},{"type":"text","content":" 5 March 2025 ","length":17,"tagName":"p"},{"type":"text","content":" Group Chief Financial Officer’s Review ","length":38,"tagName":"p"},{"type":"text","content":" I closed my 2023 statement by saying I looked forward to seeing improved underlying margins feeding into reported results for 2024. These results have duly delivered. ","length":166,"tagName":"p"},{"type":"text","content":"There are many positives and milestones: customer numbers up by 1.37 million (record number and highest annual gain); turnover up £1.3 billion to £6.1 billion (same records as customers); highest ever investment return at £182 million; very strong solvency position (203%) maintained despite the significant 121.0p final dividend; some of the best results we have delivered in UK Motor (including a material boost from the review of the Personal Injury Discount Rate); and some encouraging results from businesses beyond UK Motor - over £70 million in aggregate from UK Household, Admiral Money, L’olivier Motor and Elephant US - each delivering their own record result.","length":695,"tagName":"p"},{"type":"text","content":"In UK Motor Insurance, after the very challenging 2021 and 2022 underwriting years (both of which experienced severe claims inflation), 2023 and 2024 have been more positive – with a notably larger business (5.7 million risks at year-end 2024 v 4.9 million at year-end 2023), much higher revenue and more positive combined ratios for both years (driven by quite large cumulative price increases since the start of 2023). These factors have contributed to materially higher reported profit in 2024.","length":507,"tagName":"p"},{"type":"text","content":"In terms of volumes, after very positive conditions in the market at the start of the year (very large new business volumes and very competitive Admiral prices), the environment became tougher from Q2 onwards, with prices drifting down quite steadily. Confidence in our loss ratios meant we were able to reduce prices around the start of 2024 (ahead of the market) and in H2 as well (partly to pass the benefits of the new discount rates to our customers), but inevitably our growth in the second half was lower than in H1.","length":533,"tagName":"p"},{"type":"text","content":" Personal Injury Discount Rates ","length":30,"tagName":"p"},{"type":"text","content":"As we explain more fully later in the report, the Discount Rate for all parts of the UK changed during 2024, resulting in lower projected costs of large open claims. We estimate that in today’s money, the total (positive) impact on profit is around £150 million (emphasis on estimate) of which £100 million has been recognised in 2024.","length":340,"tagName":"p"},{"type":"text","content":" Investments ","length":11,"tagName":"p"},{"type":"text","content":"Much larger balances (£5.2 billion at year-end ’24 v £4.2 billion year-end ’23) due to strong revenue growth combined with a higher yield (4.0% for 2024 v 3.3% for 2023 as the portfolio has been reinvested over the past couple of years) led to investment income for 2024 of £182 million, our highest ever.","length":310,"tagName":"p"},{"type":"text","content":"More details on the portfolio are set out later in the report, but there’s been no change in our approach and only small changes in the asset allocation. Obviously very subject to what happens to market interest rates and spreads, we’d expect the yield shown in the income statement to continue to increase but much more gradually in 2025.","length":339,"tagName":"p"},{"type":"text","content":" Italy ","length":5,"tagName":"p"},{"type":"text","content":"In a generally very positive year, it’s fair to call out the ConTe result as a disappointment. ConTe has been steadily profitable since 2014, and the loss for the year (£23 million compared to a profit in 2023 of £7 million) was obviously not in our plan. The disappointing performance came about, partly, because of an update to the Milan Court tables (used to determine the cost of many injury claims), but also because of some adverse experience, notably from some business written in 2023.","length":508,"tagName":"p"},{"type":"text","content":"Our management team (along with pretty much the whole business) is very focused on restoring profitability through various actions as soon as possible, and I’m confident they’ll achieve this. It might well come at the cost of some volume in the very short term, though we’re still confident in ConTe’s prospects.","length":327,"tagName":"p"},{"type":"text","content":"At the risk of upsetting some of our terrific management teams, let me also call out a few other high points:","length":109,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Partly benefiting from lower than budgeted weather cost in 2024 (but also see an improving attritional loss ratio), UK Household Insurance reported its largest profit of £34 million. The team has also been well focused on the migration of the acquired More Than renewal rights portfolio as well as organic growth as we close in fast on two million policies","length":366,"tagName":"p"}]},{"val":[{"type":"text","content":"After some quite bruising years in the US, huge credit goes to our team in Elephant Auto who have very much met their goal of materially improving the bottom line in 2024. The result swung impressively from a loss of £20 million to a profit of £14 million due to a much better loss ratio and a very solid expense outcome. And whilst acknowledging the portfolio has shrunk as a consequence, this is a pleasing turnaround and we’re very proud of the team’s work","length":484,"tagName":"p"}]},{"val":[{"type":"text","content":"Veygo (mainly offering short-term car insurance in the UK) is possibly the Group’s fastest growing business, reporting revenue of £64 million in 2024 (with a very healthy three-year CAGR of 45%) and also returned its first (albeit small in the Group context) profit","length":275,"tagName":"p"}]},{"val":[{"type":"text","content":"Our French motor insurer L’olivier reported its highest profit of £11 million (2023: £7 million). With turnover above €260 million and a solid combined ratio, we’re positive about the future in France","length":200,"tagName":"p"}]},{"val":[{"type":"text","content":"And finally – partly stretching timeframe of the report – I’m very happy that Admiral Money has, in early 2025, signed its first deal to use third-party capital to grow the personal loan business – we think this is an important part of the model for the future ","length":265,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":1590,"olType":false},{"type":"text","content":" Internal capital model ","length":22,"tagName":"p"},{"type":"text","content":"As part of the process to ultimately use our own capital model to calculate our capital requirement, Admiral entered the pre-application phase (focused on UK car insurance) with the two main prudential regulators in mid-2024. We received feedback late in the year and are working to address that as well as finalise the other aspects of the model before submitting our full application. Lots of hard work is continuing on this important but complex project and we’ll update on progress in due course.","length":525,"tagName":"p"},{"type":"text","content":" Looking ahead to 2025 ","length":21,"tagName":"p"},{"type":"text","content":"We move into the new year well-placed for continued positive results. There are one or two challenges for sure (a competitive market in UK motor and the need to restore profit in Italy to name two), but particularly noting the prudent claims reserves position in all lines of business at the end of 2024, we expect strong releases and profit to flow into 2025 and beyond. Subject to market conditions, we’re still hoping to grow in pretty much all our operations too.","length":467,"tagName":"p"},{"type":"text","content":"Big thanks to all Admiral colleagues for helping to achieve these great results!","length":80,"tagName":"p"},{"type":"text","content":" Geraint Jones ","length":13,"tagName":"p"},{"type":"text","content":" Group Chief Financial Officer ","length":29,"tagName":"p"},{"type":"text","content":" 5 March 2025 ","length":17,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"style":"width:324px;vertical-align:bottom;","val":[{"type":"text","content":" £m ","length":2,"tagName":"p","attribs":{}}]},{"style":"width:119px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" 2024 ","length":4,"tagName":"p","attribs":{}}]},{"style":"width:117px;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" 2023 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","length":99,"tagName":"p"},{"type":"text","content":" 2 Reported Group loss and expense ratios are calculated on a basis inclusive of all insurance revenue – this includes insurance premium revenue net of excess of loss reinsurance, plus revenue from underwritten ancillaries and an allocation of instalment and administration fees/related commissions. See glossary for an explanation of the ratios and Appendix 1a for a reconciliation of reported loss and expense ratios, and insurance service margin, to the financial statements. ","length":477,"tagName":"p"},{"type":"text","content":" 3 Alternative Performance Measures – refer to note 14 for explanation and reconciliation to statutory income statement measures. ","length":128,"tagName":"p"},{"type":"text","content":" 4 Definition: nm – not meaningful. ","length":34,"tagName":"p"},{"type":"text","content":" Group highlights ","length":16,"tagName":"p"},{"type":"text","content":"Admiral reports strong growth in turnover and customer numbers and significantly higher profits in 2024.","length":104,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Group customer numbers increased by 14% and turnover was 28% higher, driven by UK Motor Insurance","length":97,"tagName":"p"}]},{"val":[{"type":"text","content":"Group pre-tax profit was £839 million, 90% higher than 2023 as a result of a significantly improved current year underwriting performance and continued significant prior period releases, notably in the UK Motor Insurance business. Excluding the impact of the change in Personal Injury (‘Ogden’) Discount Rate (see below), pre-tax profit would have been £739 million, 67% higher than 2023","length":387,"tagName":"p"}]},{"val":[{"type":"text","content":"Strong growth in UK Household pre-tax profit to £34 million (2023: £8 million). A relatively benign year for weather and an improved attritional loss year resulted in a favourable current year loss ratio","length":203,"tagName":"p"}]},{"val":[{"type":"text","content":"Completion of the acquisition of the More Than direct UK Household and Pet Insurance renewal rights; renewals started to transfer to Admiral in the second half of 2024","length":167,"tagName":"p"}]},{"val":[{"type":"text","content":"A lower overall loss in International Insurance (£5 million v £18 million), including a profit of £14 million in US motor, which was offset by a loss of £20 million in Europe","length":174,"tagName":"p"}]},{"val":[{"type":"text","content":"Continued growth in Admiral Money profit to £13 million (2023: £10 million) and gross loan balances (+23% year-on-year growth).","length":127,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":1155,"olType":false},{"type":"text","content":" Earnings per share ","length":18,"tagName":"p"},{"type":"text","content":"Earnings per share for 2024 were 216.6 pence (2023: 111.2 pence). The increase from 2023 is higher than the increase in pre-tax profit above due to a slightly lower effective tax rate.","length":184,"tagName":"p"},{"type":"text","content":" Return on equity ","length":16,"tagName":"p"},{"type":"text","content":"Return on equity was 56% for 2024, 20 percentage points higher than the 36% reported for 2023. The increase is the result of the significantly higher post-tax profits, partially offset by higher average equity.","length":210,"tagName":"p"},{"type":"text","content":" Dividends ","length":9,"tagName":"p"},{"type":"text","content":"The Group’s dividend policy is to pay 65% of post-tax profits as a normal dividend and to pay a further special dividend comprising earnings not required to be held in the Group for solvency, buffers or purchasing shares for the Group’s employee share plans. No shares are expected to be purchased for the share plans until 2026.","length":334,"tagName":"p"},{"type":"text","content":"The Board has proposed a final dividend of 121.0 pence per share (approximately £366.6 million) splits as follows:","length":114,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"91.4 pence per share normal dividend","length":36,"tagName":"p"}]},{"val":[{"type":"text","content":"A special dividend of 29.6 pence per share.","length":43,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":79,"olType":false},{"type":"text","content":"The 2024 final dividend reflects a pay-out ratio of 87% of second half earnings per share. 121.0 pence per share is 133% higher than the final 2023 dividend (52.0 pence per share), in line with the growth in earnings per share.","length":227,"tagName":"p"},{"type":"text","content":"The 2024 final dividend payment date is 13 June 2025, ex-dividend date 15 May 2025, and record date 16 May 2025.","length":132,"tagName":"p"},{"type":"text","content":" Economic background ","length":19,"tagName":"p"},{"type":"text","content":"Whilst remaining higher than its long-term average, the elevated inflation observed over the course of 2022 and 2023 started to reduce in 2024. Price increases implemented to mitigate the impact of the higher inflation in the Group’s main UK business in 2022 and 2023 have resulted in a strong current year underwriting performance compared to the prior year.","length":369,"tagName":"p"},{"type":"text","content":"Admiral continues to focus on medium-term profitability and has maintained a disciplined approach to business volumes. The Group’s customer base in UK Motor grew significantly at the start of 2024 as a result of price reductions ahead of the market, with market competition increasing in the second half. The Group continues to set claims reserves cautiously.","length":364,"tagName":"p"},{"type":"text","content":"Admiral Money has continued to grow its consumer loans book, with a cautious approach to growth and evolving underwriting criteria to reflect the macroeconomic environment and potential financial impact on consumers. The business continues to hold appropriately cautious provisions for credit losses.","length":300,"tagName":"p"},{"type":"text","content":" Change in UK personal injury discount rate (‘Ogden’) ","length":52,"tagName":"p"},{"type":"text","content":"The discount rate, which is used in setting personal injury compensation (referred to throughout the report as ‘Ogden’), changed to +0.5% across the UK in H2 2024.","length":163,"tagName":"p"},{"type":"text","content":"In Scotland and NI, the discount rate changed from -0.75% to +0.5%, effective from September 2024. In England and Wales, it was announced in December 2024 that the discount rate would change to +0.5% from the existing -0.25% rate, effective from 11 January 2025. The +0.5% rate is expected to remain in place for up to the next five years.","length":339,"tagName":"p"},{"type":"text","content":"Given the announcements were made in 2024, the Group has updated its insurance contract liabilities to reflect the new rate. The impact of the change in rate is an increase in 2024 pre-tax profits of £100 million (with the ultimate profit impact estimated to be around £150 million).","length":288,"tagName":"p"},{"type":"text","content":" UK Insurance Review – Alistair Hargreaves, CEO UK Insurance ","length":59,"tagName":"p"},{"type":"text","content":" It is a great privilege and responsibility to be appointed UK Insurance CEO and I’m fortunate that in writing this statement, I’m able to reflect on the UK Insurance teams’ many achievements in 2024, a very positive year. Our disciplined approach to managing uncertainty and the motor market cycle, alongside enhancements to propositions, pricing, claims and customer experience, helped us to welcome 1.4 million new customers, sustain our market-leading combined ratio and deliver £977 million profit before tax, while improving our Trustpilot customer rating to an industry-leading 4.6. ","length":598,"tagName":"p"},{"type":"text","content":"In motor, price is the primary customer consideration. This was especially true in 2024 after the recent sustained period of elevated claims inflation drove market premiums up and motor insurance affordability made the headlines. Our discipline throughout 2022 and 2023, where we increased prices ahead of competitors and sacrificed growth, paid off in 2024. We were able to start reducing rates in early 2024, ahead of the market, and our competitive prices resulted in a 15% increase in motor policies to a record 5.7 million. This was achieved whilst maintaining strong service levels and repair times due to the strength of our repair network partners. UK Motor turnover grew by £1.1 billion in 2024 to £4.5 billion and profit before tax increased to £955 million, driven by our strong performance as well as a c.£100 million reserving benefit from the recent change to the Ogden discount rate, which impacts large personal injury claims. We passed the benefits from the new Ogden rate going forward to our customers by lowering prices accordingly the day after the announcement in December.","length":1105,"tagName":"p"},{"type":"text","content":"Beyond Motor, our strong MultiCover proposition supported further growth in our Household insurance business, despite continued rate increases offsetting claims inflation. The integration of the ‘More Than’ Pet and Home renewal rights from Royal Sun Alliance (RSA) is going well. The customer migration runs over 12 months and started in the summer of 2024. This has given a boost to our Household business, which finished the year with just under two million customers, and led to a significant acceleration for Pet with more than 200,000 policies. The renewal process will continue through to the summer of 2025. Our Travel business grew both new business and renewals with strong underwriting discipline leading to a small but growing profit.","length":745,"tagName":"p"},{"type":"text","content":"We continue to invest to further improve customer journeys and maintain our market-leading insurance expertise. In 2024, we drove improvements in speed, both in feature development sprints and deploying machine-learning models across pricing, claims, and customer experience. This is supported by the fact that over 80% of our estate is now cloud-based. We are pleased with the continued growth of our digital experience, which enables customers to engage with us in the most convenient way for them. We give customers the choice to self-serve digitally, and half of mid-term changes and a third of claims notifications are now made this way. In Motor, our investment in customer proposition and claims is supporting strong growth in insured electric vehicles where we continue to be one of the industry leaders with a high teens market share.","length":843,"tagName":"p"},{"type":"text","content":"The driving force of our business is our culture and people, we were pleased to, again, have been listed in the Top 10 for both Great Places to Work and for Great Places to Work for Women. One element of our culture, which I’m particularly proud of, is our continued support of our communities. In 2024, our colleagues spent over 30,000 hours helping over a thousand people to secure work or to gain new skills with funding and support for our community partners.","length":463,"tagName":"p"},{"type":"text","content":"2024 has been a remarkable year for UK Insurance, and by delivering for our customers we’ve taken the opportunity to grow. Looking ahead, some uncertainty remains around near-term market dynamics, but our strong team and fundamentals give us a great platform to continue to provide value, ease and trust for customers and in doing so make the most of opportunities for sustainable profitable growth in 2025 and beyond.","length":433,"tagName":"p"},{"type":"text","content":" UK Insurance financial performance ","length":34,"tagName":"p"},{"type":"table","headerItems":[],"items":[{"val":[{"style":"width:395px;border-top:solid black 1pt;border-bottom:solid black 1pt;vertical-align:bottom;","val":[{"type":"text","content":" £m ","length":2,"tagName":"p","attribs":{}}]},{"style":"width:171px;border-top:solid black 1pt;border-bottom:solid black 1pt;text-align:right;vertical-align:middle;vertical-align:bottom;","val":[{"type":"text","content":" 2024 ","length":4,"tagName":"p","attribs":{}}]},{"style":"width:95px;border-top:solid black 1pt;border-bottom:solid black 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Growth continued, particularly in the second half of 2024 when rate increases in response to inflation eased, resulting in increased competitiveness","length":242,"tagName":"p"}]},{"val":[{"type":"text","content":"Profit grew strongly to £34 million (2023: £8 million) as a result of a positive current period combined ratio driven by higher earned premiums, a relatively benign year for severe weather, an improved attritional loss year plus continued prior period releases.","length":261,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":503,"olType":false}]},{"val":[{"type":"text","content":" In UK Travel and Pet Insurance: ","length":31,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Both business lines continued to grow their customer base and turnover","length":70,"tagName":"p"}]},{"val":[{"type":"text","content":"Travel delivers second consecutive annual profit, whilst there was an increased loss in Pet due to both integration costs (primarily IT) in relation to the More Than acquisition of £6.3 million, and the premium written as a result of More Than renewals not yet earning through","length":276,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":346,"olType":false}]}],"tagName":"ul","bulletedList":true,"length":1559,"olType":false},{"type":"list","items":[{"val":[{"type":"text","content":" More Than acquisition: ","length":22,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"In March 2024, the Group successfully completed its first significant acquisition, of the direct UK Household and Pet insurance renewal rights of the More Than brand and the transfer of over 280 colleagues from RSA. Liabilities relating to existing policies and those up to renewal remain with RSA","length":297,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":297,"olType":false}]}],"tagName":"ul","bulletedList":true,"length":319,"olType":false},{"type":"list","items":[{"val":[{"type":"text","content":"The integration of the business is now largely complete, with renewals having commenced in July 2024 for Household and in August 2024 for Pet","length":141,"tagName":"p"}]},{"val":[{"type":"text","content":"The 2024 UK Insurance results, therefore, include an impact of £11.9 million of integration costs in relation to the acquired business. See note 13 to the financial statements for further details.","length":196,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":337,"olType":false},{"type":"text","content":" UK Motor Insurance financial review ","length":35,"tagName":"p"},{"type":"text","content":"UK Motor profit in 2024 was £955 million, 61% higher than 2023. Excluding the impact of the change in the Ogden Discount Rate, UK Motor profit was £855 million, 44% higher than 2023. This increase is the result of an improved current period combined ratio (driven by higher average premiums earning through), along with continued positive development of prior year claims, partly offset by recognising the reinsurer’s share of releases on underwriting years 2021-2023.","length":468,"tagName":"p"},{"type":"text","content":"In addition, favoura...

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