Admiral 2010 Net Profit Up 23% On Higher Customer Numbers

U.K. motor insurer Admiral Group PLC (ADM.LN) on Wednesday posted a 23% rise in 2010 net profit, helped by continued strong underwriting business in the U.K. and an increase in the number of customers.

Admiral said net profit for the year ended Dec. 31 was GBP193.8 million, up from GBP156.9 million in 2009.

Pretax profit was up 23% at GBP265.5 million from GBP215.8 million previously. The pretax figure was higher than the GBP262.5 million average forecast from 16 analysts.

Group turnover was up 47% at GBP1.58 billion.

"For the seventh consecutive year, indeed every year since we became a public company, Admiral has reported record profits and record turnover. We have now exceeded GBP1.5 billion turnover which is a fantastic achievement," said Chief Executive Officer Henry Engelhardt.

"Does it make sense, however, to say that I am pleased, but far from satisfied? In my view, 2010 was a mixed year for the group. There were some big triumphs but also some quite sobering moments and, in a lot of areas, it's too early to judge the quality of the work completed," he said.

Engelhardt said "the big success was the U.K. motor insurance business," with a 30% rise in the number of vehicles insured.

He said "there is a lot of work to be done to create sustainable, profitable and growing businesses outside the U.K." Last year the company sold its German operation AdmiralDirekt.

The company is increasing its full-year dividend by 18% to 68.1 pence a share from 57.5 pence a year earlier.

Over the past year, Admiral shares have risen 35%, boosting its market capitalization to GBP4.6 billion. It shares closed 1% higher Tuesday at 1,708 pence.

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

Admiral (LSE:ADM)
Historical Stock Chart
From Jun 2024 to Jul 2024