Admiral Group plc Results for the Six Months Ended June 30, 2010
Richmond, Virginia (August 25, 2010)
The Admiral Group, the parent company of Elephant Insurance, announces another record half-year profit and continued strong growth. Profit before tax at £126.9 million was 21% ahead of H1 2009, whilst turnover rose 33% to £720.5 million.
The Board is declaring a record interim dividend payment of 32.6p per share.
H1 2010 Highlights
- Group profit before tax up 21% at £126.9 million (H1 2009: £105.3 million)
- Interim dividend up 18% at 32.6p per share (2009 interim: 27.7p)
- Group turnover* up 33% at £720.5 million (H1 2009: £540.1 million)
- Group net revenue up 22% at £296.4 million (H1 2009: £243.1 million)
- Group customers up 23% to 2.37 million from 1.92 million at 30 June 2009
- UK ancillary income per vehicle increased 5% to £74.50 (H1 2009: £70.80)
- Non-UK car insurance turnover up 51% to £37.1 million and customers up 53% to 154,100
- Balumba, the Spanish car insurance operation, made a profit for the first time (of €25,000)
- LeLynx.fr and Chiarezza.it, the French and Italian price comparison sites launched in early 2010
- Employee Share Scheme – over £6 million of shares will be distributed to over 4,000 staff based on the H1 2010 result
* Turnover is defined as total premiums written (including co-insurers’ share) and other revenue
Comment from Henry Engelhardt, Group Chief Executive
“The UK car insurance business continues to be the driving force behind our success and in the first half of 2010 we shifted up yet another gear. We increased premium rates by around 14% in the first half and increased customer numbers by 23% year-on-year. The combined effect was an increase in total premiums written of 37%. These results demonstrate the strength of our UK model, which combines competitive prices with great service.
Of course, there are challenges; our operations outside the UK and the Confused price comparison business are not as strong. Yes, Balumba, our insurance operation in Spain, made its first half-yearly profit (€25,000), but it still has work to do as an underwriter to build a sustainable, profitable, growing business. In sum, we now insure more than 150,000 vehicles outside the UK covering four countries. In the first part of next year, we plan to launch an insurance operation in France as the final part of our five-year strategic plan. We also have three fledgling price comparison businesses outside the UK, two of which launched this year.
All in all, we’re pleased with the numbers for the first half of 2010. As a result, every member of staff will receive £1,500 of free shares in the Group, worth over £6 million in total.”
Comment from Alastair Lyons, Group Chairman
“With a further advance in first half profits, we are delighted once again to be able to declare an increase in our interim dividend, up 18% to 32.6 pence per ordinary share. This represents 97% of after-tax earnings for the first six months of 2010, a testament to the strength of Admiral’s business model of strong growth, profitability and a high return on capital.”
Elephant Insurance is headquartered in Richmond, VA, and is the U.S. subsidiary of Admiral Group.