Admiral Group PLC Trading Statement: 2019 Results Update
February 07 2020 - 2:00AM
UK Regulatory
TIDMADM
Admiral Group plc
7 February 2020
Update on 2019 preliminary results
Admiral Group ("Admiral" or "The Group") anticipates a strong 2019
profit before tax due to higher than expected reserve releases in UK
motor insurance.
Based on preliminary figures, Admiral expects to post a Group profit
before tax for 2019 in the range of GBP510 to GBP540 million,
approximately 6% to 13% higher than 2018's result.
The higher than expected profit is due to unusually positive development,
during 2019, in the cost of UK motor bodily injury claims from a number
of prior underwriting years. This has led to elevated reserve releases
and profit commission revenue. Clarity over the new Personal Injury
Discount Rate (the 'Ogden' rate) in July 2019 led to an increase in the
number of large claims settling in 2019 compared to recent years which
contributed to the level of releases. There has been no change to
Admiral's prudent approach to reserving.
Current year profitability continues to be impacted by higher levels of
claims inflation during 2019 and as a result, Admiral expects its 2019
loss ratio to be higher than recent years. The Group's UK motor
insurance business grew marginally in customer numbers during 2019.
On the basis of these preliminary results and strong solvency position,
the proposed final dividend for 2019 is expected to be in the range of
73 to 78 pence per share.
To recognise the contribution of Admiral's employees to the strong
results, all Group staff(1) will receive a special cash bonus of GBP500
(approximately GBP6 million in total) in the first half of 2020.
Figures shown in this release are preliminary and subject to completion
of internal governance processes and external audit. Admiral will
publish its final 2019 results on Thursday 5th March 2020.
This announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014.
For more information, please contact:
Admiral Group plc
Marisja Kocznur +44 (0) 29 2060 2034
Investors & Analysts
FTI Consulting
Edward Berry +44 (0) 20 3727 1046
Tom Blackwell +44 (0) 20 3727 1051
([1]) Excluding Executive Directors
(END) Dow Jones Newswires
February 07, 2020 02:00 ET (07:00 GMT)
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