Admiral '08 Net Profit Up 14% On Better UK Business

Admiral Group PLC (ADM.LN) on Tuesday posted a 14% rise in 2008 net profit, helped by continued good underwriting business in the U.K. as well as higher profit commissions from its reinsurance partners.

After entering several markets in Europe, the company also said it is planning to do business in the U.S.

The Wales-based motor insurer said its net profit was at GBP144.9 million, up from GBP127.4 million in 2007.

Pretax profit was up 11% at GBP202.5 million from GBP182.1 million previously.

The pretax profit was inline with the GBP199 million average forecast from 12 analysts.

"For the fifth year out of five since becoming a listed company, Admiral delivered record profits and the 2008 dividend will be the biggest in our history," said Chief Executive Henry Engelhardt.

"As the U.K. business goes from strength to strength, we are planting the seeds of our long-term future by taking what we know and do well - Internet and phone delivery of car insurance to other countries," Engelhardt said.

The company is recommending a final dividend of 26.5 pence a share, making a total dividend of 52.5 pence a share for 2008, up from 43.8 pence in 2007.

Admiral shares are about 16% lower than they were a year ago, with market capitalization at around GBP2.26 billion.

Its shares closed 2.3% higher on Monday at 875 pence.

Company Web site: www.admiralgroup.co.uk

-By Vladimir Guevarra, Dow Jones Newswires, Tel. +44 (0) 2078429486, vladimir.guevarra@dowjones.com

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