Admiral Group PLC Statement Re Dividend Update

 
TIDMADM 
 
   Admiral Group plc 
 
   27 April 2020 
 
   Admiral Group plc ('Admiral', 'the Company' or 'the Group') provides an 
update on dividends and its response to the Covid-19 crisis. 
 
   Admiral's priorities throughout this challenging period have been to 
support and protect customers, staff and the long-term value of the 
Group.  All the Group's businesses are operational with staff working 
remotely. 
 
   Amendment to 2019 final dividend proposal 
 
   In light of the regulatory guidance to insurers urging restraint on the 
payments of dividends due to the uncertainty of the current economic 
environment, the Board has decided to amend its recommendation in 
relation to the final dividend for the year ended 31 December 2019. 
 
   After careful consideration, the Board is recommending an unchanged 
normal dividend of 56.3p per ordinary share (payable on 1 June 2020 to 
all ordinary shareholders on the Company's register of members at the 
close of business on 11 May 2020), but is suspending the recommendation 
to pay a special dividend of 20.7p per ordinary share.  The Board will 
review the position in relation to the special dividend alongside the 
Company's half year results.  It currently intends to pay this part of 
the final dividend later in the year unless there is a significant 
deterioration in the company's financial position, trading or outlook. 
 
   Resolution 3 as set out in the Notice of Annual General Meeting (AGM) of 
the Company will be amended at the AGM to reflect the updated Board 
recommendation.  All votes that have already been cast for or against 
Resolution 3 as set out in the Notice of AGM shall count towards the 
amended Resolution 3. 
 
   The Group has significant liquidity and a strong solvency position, well 
above its target level and regulatory thresholds.  Robust stress tests 
against the Company's financial position support the payment of the 
previously announced final dividend in full under normal circumstances. 
However, the Board is mindful of the call for heightened prudence from 
its regulators and has concluded that suspending the payment of the 
special dividend is appropriate at this time. 
 
   An update will be provided when the Company reports its interim results 
in August 2020. 
 
   Supporting customers, staff and the community 
 
   The Board's decision in relation to the final dividend is being taken in 
the context of a broader package of measures announced by Admiral on 21 
April which aim to provide support to customers, staff and Admiral's 
communities during this unprecedented time. These include: 
 
 
   -- Premium rebates worth GBP110 million to car and van insurance customers 
      in recognition of customers staying at home and driving less during 
      lockdown 
 
   -- Committing an additional GBP80 million to reducing prices and supporting 
      customers, NHS staff and the local community 
 
   -- Supporting customers who are in financial hardship as a result of the 
      pandemic.  This includes flexibility with customers struggling with 
      monthly payments for insurance and personal loans 
 
   -- All employees are being paid their full salary at this time and no staff 
      are being furloughed under the UK Government funded scheme.  Admiral does 
      not expect to require support from any other initiatives funded by the 
      Government 
 
   -- A GBP4 million Admiral Support Fund for Covid-19, which is predominantly 
      providing funding and support in South Wales, where Admiral is based, to 
      the NHS, charities, support groups and will also allow the Group to 
      contribute to any insurance industry wide charitable effort 
 
   David Stevens, Group CEO commented: 
 
   "We find ourselves in extraordinary circumstances, and it has been a 
very difficult decision to suspend the special dividend as we are aware 
of the importance and impact to our shareholders and staff.  However, 
the Board and I believe that this is the prudent and right thing to do 
at this time.  We thank our customers, staff and shareholders for their 
continued support, and we remain committed to making decisions that are 
in their best interests in the long term." 
 
   David Stevens has confirmed to Admiral that the normal dividend payable 
to him and his wife will be donated in full to their charitable 
foundation to fund support for charities experiencing reduced income and 
increased needs during the Covid-19 crisis. 
 
   This announcement contains inside information for the purposes of 
Article 7 of the Market Abuse Regulation (EU) 596/2014. 
 
   The person responsible for the release of the announcement is Mark 
Waters, Company Secretary. 
 
   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
(END) Dow Jones Newswires
April 27, 2020 02:00 ET (06:00 GMT)
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