Bloomberg News

Admiral’s Profit Increases 15% as International Sales Rise

March 06, 2013

Admiral Group Plc (ADM), the U.K. motor insurer that owns the confused.com website, said full-year profit rose 15 percent as international sales increased by a third.

Pretax profit climbed to 345 million pounds ($522 million) in 2012, compared with 299 million pounds a year earlier, the Cardiff, Wales-based insurer said today in a statement. That beat the 331.7 million-pound average estimate of 18 analysts surveyed by Bloomberg.

“The next 20 years will make the first 20 seem downright pedestrian for Admiral Group,” Chief Executive Officer Henry Engelhardt said in the statement. “And if I do my job well, then when the next wave of management takes over, it will inherit a very strong foundation upon which to construct their skyscraper.”

Admiral, which insures 3.6 million vehicles mainly in the U.K., is slowing its growth in its home market as insurers stem the increase in whiplash claims and fraud after premiums reached an all-time high in 2012. Admiral, which has more than quadrupled in value since its initial public offering in 2004, has grown profitably by undercutting competitors in a period of rising prices.

Admiral’s net income rose 17 percent to 258.4 million pounds in 2012, the firm said in the statement. The insurer increased its dividend to 90.6 pence a share, beating the analysts’ estimate of 85.8 pence.

International sales rose 33 percent to 163 million pounds and customer numbers rose 42 percent in that business.

To contact the reporters on this story: Howard Mustoe in London at hmustoe@bloomberg.net; Kevin Crowley in London at kcrowley1@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


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