On March 6, British insurer Admiral Group announced a record annual profit, attributing its success to strong performance in its motor insurance division and competitive pricing. This achievement propelled its shares to a three-and-a-half-year peak.
The company disclosed a pre-tax profit of 839.2 million pounds ($1.08 billion) for the fiscal year ending December 2024, marking a 90% increase from the previous year.
Admiral's annual profit surpassed expectations by 13%, according to Jefferies, causing shares to surge by up to 9.4% to 3,174 pence, reaching their highest level since September 2021.
Benefiting from competitive pricing strategies, Admiral managed to counterbalance the impact of declining motor premiums and acquired 1.4 million new customers in 2024, elevating the total customer base to 11.1 million.
CEO Milena Mondini de Focatiis credited the exceptional performance to the UK Motor business, with double-digit profits reported in the French and U.S. motor segments.
The company disclosed exclusive negotiations regarding the sale of its U.S. insurance sector, Elephant, which reported a profit of 14 million pounds in 2024, reversing the previous year's loss of 20 million pounds.
While underscoring the positive return to profit at Elephant, Mondini de Focatiis acknowledged the impact on the company's U.S. customer base, stating the importance of determining the best course of action for the unit's future.
Amidst a strong start in 2025, forecasting remains challenging due to persistent inflation uncertainties, as mentioned by Mondini de Focatiis.
Additionally, Admiral announced a special dividend of 29.6 pence, in addition to its regular dividend payout.