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Admiral profit jumps 43% amid record customer numbers
Insurer Admiral posted a 43% jump in full-year pre-tax profit on Wednesday and declared a special dividend amid record customer numbers.
In the year to the end of December, pre-tax profit rose to £405.4m from £284.3m, with earnings per share up 49% to 117.2p. Group net revenue was up 11% to £1.13bn, while group customers also increased 11%, to 5.73 million.
Admiral said the results reflect higher UK insurance profits, an improved price comparison result and a lower loss in the international insurance segment, partially offset by higher other group charges and business development costs.
The company proposed a final dividend of 58p per share for the year, up from 51.5p in 2016. This included a normal dividend of 39.5p per share and a further special dividend of 18.5p, taking the total dividend for the year to 114p, up 11%.
Chief executive officer David Stevens said: "It's 25 years since the launch of Admiral. 2016 was only the second year we'd ever reported a year on year fall in profits. So it's great to be back in the groove, with a 23rd year of 'record profits'.
"Beyond the pure financials, there's also a lot going on that helps build the longer-term prosperity of the group - notably our investment in widening our product range (van, travel, loans in 2017) in a way that helps us attract more customers, and understand and serve better both new & existing customers."
Admiral also said on Wednesday that it is considering setting up an insurance company and an insurance intermediary business in Spain to support its European operations, as a result of Brexit.
"Although uncertainty remains as to the outcome of the Brexit negotiations between the UK and the EU, the Group has adopted a prudent approach that will ensure it is well prepared in the event of a 'hard' Brexit which includes being ready to deal with the likely loss of passporting rights from the UK and Gibraltar into the EU."
In the year to the end of December, pre-tax profit rose to £405.4m from £284.3m, with earnings per share up 49% to 117.2p. Group net revenue was up 11% to £1.13bn, while group customers also increased 11%, to 5.73 million.
Admiral said the results reflect higher UK insurance profits, an improved price comparison result and a lower loss in the international insurance segment, partially offset by higher other group charges and business development costs.
The company proposed a final dividend of 58p per share for the year, up from 51.5p in 2016. This included a normal dividend of 39.5p per share and a further special dividend of 18.5p, taking the total dividend for the year to 114p, up 11%.
Chief executive officer David Stevens said: "It's 25 years since the launch of Admiral. 2016 was only the second year we'd ever reported a year on year fall in profits. So it's great to be back in the groove, with a 23rd year of 'record profits'.
"Beyond the pure financials, there's also a lot going on that helps build the longer-term prosperity of the group - notably our investment in widening our product range (van, travel, loans in 2017) in a way that helps us attract more customers, and understand and serve better both new & existing customers."
Admiral also said on Wednesday that it is considering setting up an insurance company and an insurance intermediary business in Spain to support its European operations, as a result of Brexit.
"Although uncertainty remains as to the outcome of the Brexit negotiations between the UK and the EU, the Group has adopted a prudent approach that will ensure it is well prepared in the event of a 'hard' Brexit which includes being ready to deal with the likely loss of passporting rights from the UK and Gibraltar into the EU."
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