The insurer’s financial results have mostly improved since 2020 thanks to its ’sameness in our core values and our approach to our people, customers and products’
Admiral has reported a 27% increase in its UK motor book’s profit before tax in 2021, to reach £871.7m, according to its full-year financial results published on 3 March 2022.
This compares to a motor profit before tax of £683.6m at the end of 2020.
Admiral believes this uptick was driven by developing prior period claims into higher reserve releases, as well as profit commission - a provision found in some reinsurance agreements that provides for profit sharing.
Profit before tax in the insurer’s UK household business, meanwhile, rose to £21.3m over the course of 2021 – up from £15.4m in 2020 - as it welcomed 160,000 new insureds to its personal line book.
The loss ratio in Admiral’s household line improved by 1.5 percentage points last year to reach 63.3%. Its motor line, however, saw its loss ratio increase to 53%, up from 49.2% in 2020.
Across its overall UK insurance book, Admiral reported a profit before tax of £894m for 2021, compared to £698.3m in 2020.
Around £54m of this profit, however, was spent on Admiral’s restructure following a review of its UK insurance cost base carried out in H2 2021.
Admiral’s UK insurance chief executive Cristina Nestares said: “Without doubt, the last couple of years have been quite different to what we’ve been used to.
“But reflecting on them now, it feels - within Admiral at least - that the important things have stayed exactly the same.
“It’s the sameness in our core values and our approach to our people, customers and products that has contributed to yet another strong year and which positions us well for any challenges of 2022.
“Focus on the right things, test and learn, make incremental improvements [and] care about people – all those little things add up and drive the right outcomes, as they always have done.”
Surviving ‘beyond infancy’
Admiral’s turnover rose to £2,751.7m in 2021, up from £2,672m in 2020, as total premiums written increased from £2,373.3m in 2020 to £2,453.2m last year.
Net insurance premium revenue also improved to £612.6m, compared to £539.7m in 2020.
Group chief executive of Admiral, Milena Mondini de Focatiis, added: “It’s common to all insurers [that] survive beyond infancy that they are competent in the core insurance disciplines - notably risk selection, claims handling and effective digital distribution and servicing.
“What sets Admiral apart from most of our peers is our ability to deliver on these consistently well and 2021 has been no different.”
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