Admiral Group, a leading provider of car insurance and other financial products, has announced a remarkable growth in profits and customer base in its 2023 Interim Results Highlights report. The company reported a 4% year-on-year increase in Group profit before tax, an impressive £233.9 million growth.
In a surprising turn of events, Admiral managed to achieve this growth despite insuring fewer vehicles during the year. The company covered 380,000 fewer vehicles, marking a substantial reduction in its active vehicle base. This decline was more pronounced than the 300,000 decrease observed over the entirety of the previous year.
Admiral had implemented a significant price hike of 20% in the first half of the year, which effectively countered the adverse effects of rampant inflation on its profit margins.
The UK Motor business, a core segment for Admiral, demonstrated its strength by delivering a substantial profit of £298 million during the first half of 2023. Despite the reduction in active vehicles, the company’s position in the market remains robust, particularly due to its decision to adjust prices ahead of the market trend.
Milena Mondini de Focatiis, the Group Chief Executive Officer, expressed her satisfaction with the company’s performance, especially in light of the challenging market conditions: “Inflation persists, but we have navigated the cycle well, maintaining pricing discipline and a focus on medium-term profitability. We recognise that these are challenging times for many people and we are committed to being there for them when they need us the most, delivering good service and competitively priced products while also actively managing our costs.
“I am pleased to say that we remain strongly capitalised and, thanks to the hard work of my colleagues across all of our markets, we now serve even more customers, and are very well-positioned for a more encouraging outlook.”
Admiral’s diversification strategy also bore fruit, with non-UK Motor products contributing to a 19% growth in customer numbers. The UK Household business and European Motor business reported profits of £8.7 million and £4.7 million, respectively. Admiral Money, the company’s financial arm, experienced prudent growth, with loan balances increasing by 31%.