’2023 was a more encouraging year after a difficult 2022 for the industry,’ says UK chief executive

Admiral Group posted a combined operating ratio (COR) of 88.7% for 2023 – an eight percentage point improvement from 2022’s figure of 96.8%.

The group also reached £3.49bn in insurance revenues for the 12 months ended 31 December 2023, representing an 18% year-on-year increase from a previous figure of £2.96bn. 

Group profit also rose by 23% from 2022’s figure of £361.2m to £442.8m in the latest set of financial results, published this morning (7 February 2024). 

In the UK, which formed the vast majority of Admiral’s insurance business, the insurer also posted total premiums written of £3,502.6m – rising from £2,555.0 the previous year. 

UK insurance profit before tax for 2023 reached £596.5m, of which UK motor made up £593.3m. Group profit came in at less than the total for the UK because of losses in international insurance and other expenses. 

UK diversification

Milena Mondini de Focatiis, group chief executive at Admiral, said: ”Admiral achieved another good set of results, within the context of challenging market conditions, with group profit of £443m and a 31% rise in turnover.

“In 2023, we accelerated our UK diversification. We announced the intention to acquire the renewal rights for RSA’s pet and home insurance businesses, improved results in all our main lines of business and achieved double-digit growth in our electric vehicle book, supporting customers in transitioning to green mobility.

“Despite global uncertainties, our outlook is positive, benefitting from improved market conditions and a strengthened position, thanks to the discipline we maintained in the last year.”

Cristina Nestares, Admiral’s chief executive for UK insurance, added: ”2023 was a more encouraging year after a difficult 2022 for the industry. Inflationary pressures began to stabilise and our early and strong pricing response positions the business for a robust improvement in results.

”We’re very pleased that our motor book has returned to growth in the last six months of 2023, after 12 months of contraction following our disciplined approach of strong price increases to offset the impact of inflation.

”Our relatively early pricing response led to a fall in our competitiveness and market share in the second half of 2022 and first half of 2023.”