Admiral raised its new business by 45% last year, the company said in its preliminary results for the year ending 31 December 2004.

The company warned it would be raising its premiums in 2005 in anticpation of a profit drop. But, it said 2004 had been a successful year.

It reported:
·Total premium written rose 27% from £372m in 2003 to £470m in 2004
·The company's share of the UK private car insurance market rose 1% to 4%
·New business policies sold rose 45% to 557,000 from 383,000 in 2003
·New business sourced from the internet rose from 30% in October 2003 to 38% in October 2004
·Ancillary revenue averaged £51 per policy, in line with 2003 revenues
·The market saw a “substantial” increase in marketing spend, with press and TV spend rising 41%.

The company predicted that profits would deteriorate across the sector in 2005, but said it would not feel the effects as much as its competitors.

It expects a continued growth in policy sales, despite a need to raise premiums in anticipation of the profit drop.

Admiral chief executive Henry Engelhardt said it did not expect its competitors to raise premiums for another six to 18 months.

“Some of these companies are going to go out of business unless they raise rates or take other action to improve their results,” he said.

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