Wiki source code of Admiral Group

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1 {{box cssClass="floatinginfobox" title="**Contents**"}}
2 {{toc/}}
3 {{/box}}
4
5 = Summary =
6
7 * Admiral Group is a leading FTSE100 Financial Services company with businesses in the UK, Europe and America.
8 * The company offers services such as price comparison, home and travel insurance, Insurtech, personal loans, car finance and legal services.
9 * The company now have over 11,000 colleagues and 7 million customers worldwide.
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12 [[image:ADM0.png||height="268" width="687"]]
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14
15 = Company Overview =
16
17 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.{{footnote}}https://admiralgroup.co.uk/our-story{{/footnote}}
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20 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.
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23 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.
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26 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.
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29 The company's purpose is to help more people to look after their future. Always striving for better together.
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32 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.
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35 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. 
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38 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.
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41 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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44 [[image:ADM1.jpg]]
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46
47 = Business Overview =
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49 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.{{footnote}}https://admiralgroup.co.uk/our-business{{/footnote}}
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52 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.
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55 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.
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58 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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60
61 [[image:ADM2.jpg]]
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64 The Group is one of the largest employers in South Wales and currently employs 11,000 people in its operations worldwide.
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66 * United Kingdom
67 * Spain
68 * Italy
69 * France
70 * USA
71 * Canada
72 * India
73
74
75 == Brands & Markets ==
76
77 * Admiral, Home, Car and Van Insurance
78 * Apparent Insurance, Car Insurance
79 * Balumba, Car Insurance
80 * Bell, Car Insurance
81 * Compare.com, Price Comparison
82 * ConTe.it, Car Insurance
83 * Diamond, Car Insurance
84 * Elephant, Car Insurance
85 * Elephant Auto, Car Insurance
86 * Gladiator, Van Insurance
87 * L'olivier – assurance auto, Car Insurance
88 * Qualitas Auto, Car Insurance
89 * Veygo, Car Insurance
90 * WiYou Seguros, Car Insurance
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92
93
94 [[image:ADM3.png]]
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96
97 == Subsidiary Companies ==
98
99 The Parent Company’s subsidiaries are as follows:{{footnote}}https://admiralgroup.co.uk/subsidiary-companies{{/footnote}}
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101
102 (% style="width:1257px" %)
103 |(% style="width:347px" %)**Subsidiary**|(% style="width:260px" %)**Country of incorporation**|(% style="width:206px" %)**Class of shares held**|(% style="width:154px" %)**% Ownership**|(% style="width:287px" %)**Principal activity**
104 |(% style="width:347px" %)EUI Limited|(% style="width:260px" %)England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)General insurance intermediary
105 |(% style="width:347px" %)EUI (France)|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)General insurance intermediary
106 |(% style="width:347px" %)Admiral Insurance Company Limited|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Insurance Company
107 |(% style="width:347px" %)Admiral Insurance (Gibraltar) Limited|(% style="width:260px" %)Gibraltar|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Insurance Company
108 |(% style="width:347px" %)Able Insurance Services Limited|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Intermediary
109 |(% style="width:347px" %)Elephant Insurance Company|(% style="width:260px" %)United States of America|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Insurance Company
110 |(% style="width:347px" %)Elephant Insurance Services, LLC|(% style="width:260px" %)United States of America|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Insurance intermediary
111 |(% style="width:347px" %)Inspop.com (France)|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Internet insurance intermediary
112 |(% style="width:347px" %)Admiral Syndicate Limited|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Dormant
113 |(% style="width:347px" %)Admiral Syndicate Management Limited|(% style="width:260px" %)England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Dormant
114 |(% style="width:347px" %)Admiral Life Limited|(% style="width:260px" %)England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Dormant
115 |(% style="width:347px" %)Bell Direct|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Dormant
116 |(% style="width:347px" %)Confused.com Limited|(% style="width:260px" %)England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Dormant
117 |(% style="width:347px" %)Diamond Motor Insurance Services Limited|(% style="width:260px" %)England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Dormant
118 |(% style="width:347px" %)Elephant Insurance Services Limited|(% style="width:260px" %)England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Dormant
119 |(% style="width:347px" %)Inspop USA LLC|(% style="width:260px" %)United States of America|(% style="width:206px" %)Ordinary|(% style="width:154px" %)78.76%|(% style="width:287px" %)Internet insurance intermediary
120 |(% style="width:347px" %)Comparenow.com Insurance Agency LLC|(% style="width:260px" %)United States of America|(% style="width:206px" %)Ordinary|(% style="width:154px" %)78.76%|(% style="width:287px" %)Internet insurance intermediary
121 |(% style="width:347px" %)Admiral Law Limited|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)90%|(% style="width:287px" %)Law Firm
122 |(% style="width:347px" %)BDE Law Limited|(% style="width:260px" %)Limited England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)90%|(% style="width:287px" %)Law Firm
123 |(% style="width:347px" %)Admiral Financial Services Limited|(% style="width:260px" %)England and Wales|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Financial Services
124 |(% style="width:347px" %)Admiral Europe Compañía de Seguros, S.A.U.|(% style="width:260px" %)Spain|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Insurance Company
125 |(% style="width:347px" %)Admiral Intermediary Services S.A.U.|(% style="width:260px" %)Spain|(% style="width:206px" %)Ordinary|(% style="width:154px" %)100%|(% style="width:287px" %)Insurance intermediary
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129 The Admiral Group consists of the following 100% owned trading subsidiaries
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131 (% style="width:631px" %)
132 |(% style="width:349px" %)**Subsidiary**|(% style="width:280px" %)
133 |(% style="width:349px" %)EUI Limited|(% style="width:280px" %)2686904
134 |(% style="width:349px" %)Admiral Insurance Company Limited|(% style="width:280px" %)4080051
135 |(% style="width:349px" %)Admiral Insurance (Gibraltar) Limited|(% style="width:280px" %)85455
136 |(% style="width:349px" %)Able Insurance Services Limited|(% style="width:280px" %)2890075
137 |(% style="width:349px" %)Admiral Syndicate Limited|(% style="width:280px" %)3848336
138 |(% style="width:349px" %)Admiral Syndicate Management Limited|(% style="width:280px" %)3877606
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141 [[image:ADM4.jpg]]
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143
144 = Financial Highlights =
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146
147 **Key highlights of the Group’s results for 2020 are as follows:**
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149 Continued growth in turnover (£3.55 billion, up 2% on 2019) and customer numbers (7.66 million, up 10% on 2019). {{footnote}}https://admiralgroup.co.uk/sites/default/files_public/annual-report/2021/03/2020-full-year-results-annual-report.pdf{{/footnote}}
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151 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).
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153 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.
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156 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.
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158 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.
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160 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).
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162 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).
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165 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.
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167 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.
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169 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.
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171 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.
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173 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.
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175 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%)
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177
178 = References =
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180 {{putFootnotes/}}
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