Cardiff-headquartered insurance company Admiral has reported that its industry leading new business growth has finally slowed as a result of a strategic change of direction.
Admiral, which provides general insurance products to the UK market, has experienced the biggest growth of any UK insurer in recent years. The company focus on using modern marketing channels such as the Internet to promote its three main brands: Admiral, Elephant and Diamond, has been a key factor in generating its impressive levels of new business.
However, Admiral has said that its unprecedented business growth has now slowed because it has switched its focus from generating business to improving margins. While the insurer has increased its account numbers by 16% over the past year, only 5% of that growth has come in the last six months. Meanwhile, premium margins have increased by 2.9% at the company during the last 12 months to GBP319 million.
Admiral’s premium increase may be tactical but Admiral chief executive Henry Engelhardt has also warned that they are necessary as costs have also risen 5% over the past year. Engelhardt added that if other insurers did not increase their prices they would be running the risk of operating at a loss in the near future.