Cardiff-based Admiral Group Plc has revealed how it fared during the full year 2022.
The past year proved to be a profitable period for the insurer despite high inflation, with group profit before tax amounting to £469 million. The sum, however, was lower compared to 2021’s £769 million. Operating profit also slid, from £780.9 million to £480.9 million.
As previously pointed out by Admiral, 2019 is a better comparison to recent performance, given that 2020 and 2021 numbers were “distorted by the huge positive impact of the pandemic on claims costs and profitability,” said chief financial officer Geraint Jones.
Of the group profit before tax, £615.9 million came from UK insurance; £(53.8 million), international insurance; £2.1 million, Admiral Money; and £(95.2 million), other.
Commenting on the figures for Admiral’s British insurance operations, UK insurance chief executive Cristina Nestares stated: “At Admiral we’ve responded to inflationary pressures by maintaining pricing discipline, increasing prices in motor insurance by more than 20% since March.
“Our decision to accelerate rate increases earlier than the market led to a reduction in competitiveness and a contraction in our new business market share. However, this is consistent with our position on growth; only growing when conditions are supportive. We strongly believe this is the right approach for the long-term sustainability of the business.”
Of the £615.9 million UK insurance profit before tax, motor contributed £622.6 million, while household and travel & pet posted £(6.3 million) and £(0.4 million), respectively.
Group CEO Milena Mondini de Focatiis had this to say: “I am proud of the agility and adaptability that Admiral demonstrated in 2022 as it increased its customer base by 11% and delivered profits of £469 million against the backdrop of a challenging market environment.
“We have yet again shown focus and discipline, reacting quickly to emerging trends – we implemented price increases ahead of others in response to higher inflation while maintaining a conservative approach to reserving and capital management.”
Meanwhile, under Admiral’s employee share scheme, based on the 2022 financial results, around 10,000 employees each receive free shares awards worth up to £3,600. Additionally, the company’s board has proposed a final dividend of 52 pence per share payable on June 2.
