Summary

  • Admiral Group is a leading FTSE100 Financial Services company with businesses in the UK, Europe and America.
  • The company offers services such as price comparison, home and travel insurance, Insurtech, personal loans, car finance and legal services.
  • The company now have over 11,000 colleagues and 7 million customers worldwide.

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Company Overview

Admiral Group (LSE:ADM, OTC:AMIGF) is a leading FTSE100 Financial Services company with businesses in the UK, Europe and America. The company set up in 1993 as a car insurance specialist, but since then Admiral Group has expanded into other countries and other services such as price comparison, home and travel insurance, Insurtech, personal loans, car finance and legal services.1

The company's history is one of growth, profitability and innovation. When the company launched in 1993 the company had just one brand, zero customers and 57 members of staff. The company now have over 11,000 colleagues and 7 million customers worldwide.

Admiral Group has its headquarters and UK offices in south Wales as well as businesses in Spain, Italy, France and the US. The company also have offices in Halifax, Canada and Delhi, India.

The company care deeply about its colleagues, its customers and the impact the company make on the world. The company strive to do the right thing at every turn. The company's purpose defines the reason the company exist, and the way the company do things. 

The company's purpose is to help more people to look after their future. Always striving for better together. 

Admiral Group has an agile, innovative and test and learn organisational culture, underpinned by its four pillars of communication, equality, recognition and fun, and its philosophy that people who like what they do, do it better.

During the early 2000’s, the company created Confused.com, the UK’s first price comparison website and in 2017 the company launched Admiral Financial Services. Admiral Financial Services utilises the learning gained from the Group’s experience within the insurance sector and has a focus on data analytics, technology, customer-centricity and product innovation.  

On 23rd September 2004 Admiral Group plc announced the successful pricing of its initial public offering at an Offer Price of 275 pence per existing ordinary share on the London Stock Exchange.

More recently, the company launched new Insurtech propositions, such as Veygo and Homebrella and most recently set up Admiral Pioneer tasked with exploring and investing in new ventures and emerging consumer needs.

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Business Overview

Admiral Group is a FTSE100 Financial Services company with businesses around the world.  In the UK, you will know it through its insurance brands Admiral, Elephant, Diamond and Bell, Gladiator for commercial vehicles and Veygo for temporary and learner driver insurance.2

The company also have insurance businesses in Spain, Italy and France, insurance and a price comparison business in the US, as well as offices in Canada and India too.

Admiral Group is an agile and innovative organisation, not afraid to test new ideas. The company's aim is to give great service and value for money to as many people as possible.

Although the company started life as an insurance provider, Admiral Group has developed new products and new services such as Insurtech propositions like Veygo and Homebrella, personal finance through Admiral Financial Services and legal services through Admiral Law. Most recently the company set up Admiral Pioneer tasked with exploring and investing in new ventures and emerging consumer needs.

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The Group is one of the largest employers in South Wales and currently employs 11,000 people in its operations worldwide.

  • United Kingdom
  • Spain
  • Italy
  • France
  • USA
  • Canada
  • India

Brands & Markets

  • Admiral, Home, Car and Van Insurance
  • Apparent Insurance, Car Insurance
  • Balumba, Car Insurance
  • Bell, Car Insurance
  • Compare.com, Price Comparison
  • ConTe.it, Car Insurance
  • Diamond, Car Insurance
  • Elephant, Car Insurance
  • Elephant Auto, Car Insurance
  • Gladiator, Van Insurance
  • L'olivier – assurance auto, Car Insurance
  • Qualitas Auto, Car Insurance
  • Veygo, Car Insurance
  • WiYou Seguros, Car Insurance

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Subsidiary Companies

The Parent Company’s subsidiaries are as follows:3

SubsidiaryCountry of incorporationClass of shares held% OwnershipPrincipal activity
EUI LimitedEngland and WalesOrdinary100%General insurance intermediary
EUI (France)Limited England and WalesOrdinary100%General insurance intermediary
Admiral Insurance Company LimitedLimited England and WalesOrdinary100%Insurance Company
Admiral Insurance (Gibraltar) LimitedGibraltarOrdinary100%Insurance Company
Able Insurance Services LimitedLimited England and WalesOrdinary100%Intermediary
Elephant Insurance CompanyUnited States of AmericaOrdinary100%Insurance Company
Elephant Insurance Services, LLCUnited States of AmericaOrdinary100%Insurance intermediary
Inspop.com (France)Limited England and WalesOrdinary100%Internet insurance intermediary
Admiral Syndicate LimitedLimited England and WalesOrdinary100%Dormant
Admiral Syndicate Management LimitedEngland and WalesOrdinary100%Dormant
Admiral Life LimitedEngland and WalesOrdinary100%Dormant
Bell DirectLimited England and WalesOrdinary100%Dormant
Confused.com LimitedEngland and WalesOrdinary100%Dormant
Diamond Motor Insurance Services LimitedEngland and WalesOrdinary100%Dormant
Elephant Insurance Services LimitedEngland and WalesOrdinary100%Dormant
Inspop USA LLCUnited States of AmericaOrdinary78.76%Internet insurance intermediary
Comparenow.com Insurance Agency LLCUnited States of AmericaOrdinary78.76%Internet insurance intermediary
Admiral Law LimitedLimited England and WalesOrdinary90%Law Firm
BDE Law LimitedLimited England and WalesOrdinary90%Law Firm
Admiral Financial Services LimitedEngland and WalesOrdinary100%Financial Services
Admiral Europe Compañía de Seguros, S.A.U.SpainOrdinary100%Insurance Company
Admiral Intermediary Services S.A.U.SpainOrdinary100%Insurance intermediary

The Admiral Group consists of the following 100% owned trading subsidiaries

Subsidiary 
EUI Limited2686904
Admiral Insurance Company Limited4080051
Admiral Insurance (Gibraltar) Limited85455
Able Insurance Services Limited2890075
Admiral Syndicate Limited3848336
Admiral Syndicate Management Limited3877606

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Financial Highlights

Key highlights of the Group’s results for 2020 are as follows:

Continued growth in turnover (£3.55 billion, up 2% on 2019) and customer numbers (7.66 million, up 10% on 2019). 4

Group’s share of pre-tax profits of £638.4 million (2019: £526.1 million) and Group profit before tax of £637.6 million (2019: £522.6 million).

The main driver of the strong growth in Group profit was a higher UK Insurance result, which benefited from reduced claims frequency and continued strong prior year reserve releases, and also the non-recurrence of the £33 million negative Ogden discount rate impact in 2019.

UK Insurance turnover and customers increased by 2% and 9% respectively to £2.67 billion and 6.0 million (2019: £2.63 billion and 5.5 million), as the business passed claims frequency benefits to customers by refunding premium and reducing prices.

UK Household saw strong growth in turnover and customer numbers, with an improved result of £15.4 million (2019: £7.5 million profit) as a result of lower theft and escape of water claims in the period.

The European insurance businesses delivered a higher profit of £13.6 million (2019: £8.7 million), and there was a lower loss in the US insurance business (£4.8 million in 2020 v £9.6 million in 2019). The overall international insurance profit was £8.8 million (2019: £0.9 million loss).

The Comparison businesses recorded aggregate profits (excluding minority interests’ share) of £31.0 million (2019: £18.0 million), with the increase mainly driven by a very strong profit from Confused.com of £29.4 million (2019: £20.4 million).

Earnings per share increased by 21% to 179.5 pence (2019: 148.3 pence), in line with the growth in Admiral’s share of pre-tax profit.

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 capital requirements including management internal risk appetite above the regulatory minimum. The Board has proposed a final dividend of 86.0 pence per share. This final dividend is 12% ahead of the 2019 final dividend (77.0 pence per share, including the special dividend which was deferred and subsequently paid alongside the 2020 interim dividend), with a pay-out ratio of 89% for H2 2020.

The Group’s return on equity was 52% in 2020, in line with 2019. The Group’s share of total post-tax profits grew by 21%, in line with the 21% growth in the group’s share of average equity. The significant growth in profits in the second half of 2020 contributed to the increase in the group’s share of equity.

The Group’s co-insurance and reinsurance arrangements for the UK Car Insurance business are in place at least until the end of 2021. The Group’s net retained share of that business is 22%. Munich Re will underwrite 40% through co-insurance (30%) and reinsurance (10%) arrangements, until at least the end of 2021. Whilst some agreements with the Group’s other reinsurance partners have already been concluded, the remaining extensions for business beyond 2021 are expected to be confirmed during the first half of 2021.

The Group’s capital includes £200 million ten year dated subordinated bonds. The rate of interest is fixed at 5.5% and the bonds mature in July 2024. The bonds qualify as tier two capital under the Solvency II regulatory regime.

The total tax charge reported in the consolidated income statement is £109.8 million (2019: £94.2 million), equating to 17.2% of pre-tax profit (2019: 18.0%). The reduction in the effective tax charge is the result of higher non-taxable investment income recognised in the year, and lower losses in the US businesses. The tax rate equates to 17.5% of pre-tax profit on continuing operations (2019: 17.6%)

References

  1. ^ https://admiralgroup.co.uk/our-story
  2. ^ https://admiralgroup.co.uk/our-business
  3. ^ https://admiralgroup.co.uk/subsidiary-companies
  4. ^ https://admiralgroup.co.uk/sites/default/files_public/annual-report/2021/03/2020-full-year-results-annual-report.pdf
Created by Asif Farooqui on 2021/12/06 06:41
     

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