Wednesday, March 2, 2011

UK car insurance profits - UK motor market helps Admiral to record profit

UK car insurance profits - UK motor market helps Admiral to record profit ; Admiral (ADM) made more money than ever before in 2010, driven by its core UK motor insurance business. Pre-tax profits at the insurer rose from £216 million to £266 million in 2010, with turnover up 47% to £1.58 billion as premiums rose.

UK car insurance profits
were up 33% at £275.8 million as the FTSE 100-listed firm enjoyed trading conditions more favourable than any time since 2000. The non-UK car business, however, lost £8 million.

Vehicle count grew 32% to around 2.5 million vehicles covered by Admiral brands, making the firm one of the top three UK private motor insurers, with 10% of the UK market.

The firm may be able to push up premium costs for female drivers from December 2012 following yesterday’s ruling by European judges that insurers cannot offer lower premiums to women solely on the basis of gender.

"The big success was the UK motor insurance business," said chief executive Henry Engelhardt, adding the insurer "experienced a flood of new business" in 2010.

The confused.com comparison website had a "tough" year, though. Revenue fell 10% to £71.8 million and profit slumped 34% to £16.9 million.

Investors were given a lift by the firm's final dividend of 35.5p a share, giving a full-year payout of 68.1p.
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