UK insurance company Admiral Group has announces record interim results with a core profit of GBP56.9 million for the six months to June 2005, an increase of 17% over the same period in 2004.
Group turnover, comprising total premiums written, gross other income and investment income, rose 19% to GBP319.3 million. During the first half of 2005, the group wrote total motor premiums for itself and its underwriting partners of GBP268.5 million compared to GBP233.3 million in 2004, with the increase driven by substantial growth in online sales.
Admiral’s premium rates were on average 2.9% higher in the first half of 2005 compared with the same period a year earlier as the group took action to offset in part claims inflation of around 5% and achieve a sustainable underwriting result.
Due to Admiral’s strong cash position, the company has revealed that it will pay out a special dividend worth 2.9 pence per share on top of the 6.8 pence representing the normal interim dividend.
We’re delighted to be reporting record interim profits and strong growth in turnover, despite a challenging market environment. Our ability to increase our customers and turnover even while raising premium rates suggests that motorists in the UK continue to find our product offering both attractive and competitive, commented Henry Engelhardt, group chief executive.