Admiral Group plc, the UK insurer, reported a record Group share of profit before tax of £405.4 million for 2017. That is 43% more than the £284.3 million of 2016. The company published the results on 28 February 2018.
Statutory profit before tax rose 45% to £403.5 million. Earnings per share climbed 49% to 117.2 pence, while return on equity reached 55%, up from 37%. Turnover grew 15% to £2.96 billion, and customer numbers rose 11% to 5.73 million.
The board set a total dividend of 114.0 pence, up 11% if the 2016 special return of capital is excluded. The final dividend of 58.0 pence will be paid on 1 June 2018. After the dividend, the solvency ratio stood at 205%.
UK car insurance did most of the work. Motor profit reached £461.4 million, and the combined ratio fell to 80.0% from 90.8%, helped by reserve releases. The number of vehicles insured rose 8% to 3.96 million.
Household insurance grew fast as well, since the number of insured properties jumped 41% to 659,800. International insurance cut its loss to £14.3 million. In Italy, ConTe posted a record profit, while the US business, Elephant Auto, lost £12.5 million. Meanwhile, the European comparison sites Rastreator and LeLynx made a record £4.1 million.
The year also brought new lines. Admiral launched van insurance in May 2017 and travel insurance in late November. Admiral Loans started offering personal loans and car finance, though it posted a small operating loss in its first stage.
Chief executive David Stevens marked 25 years since Admiral’s launch and called 2017 a return to record profits. Chairman Annette Court welcomed Andy Crossley to the board as an independent non-executive director. More than 9,600 staff will each receive free shares worth £3,600.
